Välimäki: Trust, resilience key for future of money
Tuomas Välimäki, Board Member of the Bank of Finland, emphasized trust, resilience, and renewal as key priorities for the future of money. Speaking at the Bank of Korea International Conference, he highlighted the institutional aspect over technology.
Trust: The institutional anchor of money
Tuomas Välimäki emphasized that the future of money is fundamentally an institutional question, anchored in public trust, not solely a technological one.
He stated that price stability and central bank money remain the foundations of this trust, noting that central banks' most basic contribution is ensuring money preserves its value, a lesson reinforced by recent inflation shocks.
Monetary systems rely on a two-tier model, combining public trust with private innovation.
Välimäki highlighted Finland's digital payment society, where cash use for transactions has declined, yet cash in circulation has increased, suggesting central bank money's evolving function as a store of trust and public anchor.
This context frames the digital euro debate, aiming to ensure public money remains useful in a digital economy, complementing private solutions.
Resilience and innovation's framework
Välimäki stressed payments are critical infrastructure, not mere convenience.
In a world of geopolitical uncertainty and cyber risk, payments must function reliably under stress, demanding diverse rails and fallback arrangements to avoid single points of failure.
This also underpins strategic autonomy.
He added that renewal through innovation, including digital currencies and AI, requires a strong public framework.
While these technologies offer efficiencies, they also amplify systemic vulnerabilities if core principles like uniformity and operational resilience are not protected.
Central banks must use them responsibly, ensuring innovation does not replace accountability and judgment.
Beyond technology, a call for vigilance
Välimäki's speech effectively reframes the future of money as an institutional challenge, moving beyond a purely technological lens.
This emphasis on trust and resilience underscores the enduring, indispensable role of central banks in an increasingly digital and volatile landscape.
However, the practical implementation of 'renewal within a strong public framework' remains a complex task requiring continuous adaptation and proactive regulatory efforts.