The regulatory issues raised by these actual and potential digital innovations are vast. Would the issuer of a digital currency used globally have significant amounts of market power? Would its dominance hinder further innovation? How would the confidentiality of users’ data be protected while at the same time preventing illicit use of the technology for money laundering, tax evasion and terrorist finance? Is it possible to bring BigTech, Fintech and established financial institutions under one regulatory umbrella, and if not, then what? Would the ability of national governments to issue their own currencies and the effectiveness of capital controls be eroded? Who would address the risks to systematic stability, and how? In terms of the political economy of regulation, would existing stakeholders (banks, credit card companies and others) be able to push regulators to slow the rollout of such new technologies or channel them in particular directions?
