Policy-makers should adopt a “watch-and-wait approach” to central bank-issued digital currencies, an article in the Bank of Spain’s economic bulletin argues.

In Monetary policy implications of central bank-issued digital currency, Galo Nuño notes several kinds of risk associated with central bank-issued digital currencies, or CBDCs. The technological risks are significant and “might cause considerable harm to the economy as a whole”, he says.

Nuño also considers the risks to financial