MacroVoices · Thursday, August 27, 2026
Daniel Lacalle explains that Central Bank Digital Currencies (CBDCs) present a dilemma for central banks, potentially offering a more efficient way to issue debt and control the monetary system by bypassing commercial banks. However, this increased control could lead to unprecedented surveillance and also foster greater fragmentation in the global financial system, potentially increasing demand for alternative assets.
“On the one hand, they have to meet the demand for reserve assets. On the other hand, the issuance of those reserve assets, namely US dollar denominated debt, is creating the very problem that they're trying to solve. That is, the inflation risk and the fiscal unsustainability.”
“And they're trying to solve that by promoting Central Bank Digital Currencies, which I think is a fascinating move. Because CBDCs are essentially nothing more than a more efficient way for the central bank to issue debt.”
“If the central bank can issue digital currency directly, then they can control every transaction, every purchase, every sale. They can track every aspect of our financial lives. And that, in my view, is a very dangerous prospect.”
“CBDCs could lead to greater central bank control, but they could also lead to greater fragmentation and a greater demand for alternative assets.”