Central Banks as Utilities? (Summary of Private Roundtable Discussion)

Central Bank of the Future, Paper #5 Roundtable Summary Abstract In June 2020, the University of Michigan Center on Finance, Law & Policy held a virtual Roundtable for the Central Bank of the Future Project. [...] However, the original intent of central banks should not be solely dispositive about the role of the “central bank of the future.” The future of central banks can be different from the original purpose of central banking. [...] The inquiry “how should the central bank do UNIVERSITY OF MICHIGAN CENTER ON FINANCE, LAW & POLICY 1 Central Bank of the Future, Paper #5 Roundtable Summary this?” leapfrogs the question of “if central banks should serve as utilities?” If the goal of this type of utility is to promote public policy, central banks may not be the correct institution to spearhead this project. [...] Rather, the question ought to be “what should the central bank do?” This allows the discussion to include an evaluation of the feasibility of the central bank in various non-ownership roles, such as facilitator, governance agent, or regulator. [...] Conclusion The Central Bank of the Future Project intends to identify the potential for central banks around the world to act as utility providers for the citizens of their respective countries.