The Economist: Huw Van Steenis On How To Prevent Digital Bank Runs

In his op-ed Huw Van Steenis, Vice-Chair of Oliver Wyman, discusses the implications for banks and regulators of consumers’ and companies’ ability to now move millions, or billions, with just a few clicks. He suggests that slowing the introduction of central-bank digital currencies (CBDCs) will help.

Beyond adjustments on digital currencies, however, how might banks and policymakers fend off digital bank runs? He anticipates a tightening of existing rules and argues that supervisors will also “need to get smarter about anticipating risks and snuffing them out before they spread”.

The financial world, Huw highlights, “still needs to worry about the same old things–especially when they present themselves in new forms.’

Read the full article here (paywall).