We could and should take back control over the creation of money. A number of central banks, including the Bank of England and the Swedish central bank, are currently researching the idea of issuing “central bank digital currency”. This would be a digital form of physical cash created by the Bank of England that could be held by households and firms.
It would also give central banks an additional policy tool to help boost demand when interest rates are already very low. For example, the central bank could directly credit the accounts of households enhancing consumption or enabling households to reduce debt overhang – so called “helicopter money” which has been proposed by a number of notable economists. It might also enable greater financial inclusion, by providing access to digital payment platforms for everyone.