Date: 22 April 2026, Wednesday
Time: 10.30 – 11.30
“CBDCs, Payment Firms, and Geopolitics”
by
Tobias Berg
Geothe University Frankfurt
This is an online seminar. To request event details please send a message to department.
Abstract
We analyze the effect of a major central bank digital currency (CBDC) – the digital euro – on the payment industry to find remarkably heterogeneous effects. Stock prices of U.S. payment firms decrease, while those of European payment firms increase in response to positive announcements on the digital euro. Bank stocks do not react significantly. We estimate a loss in market capitalization of USD 127 billion for U.S. payment firms, vis-à-vis a gain of USD 23 billion for European payment firms. Our results emphasize the medium-of-exchange function of CBDCs and point to the important role of geopolitical considerations in designing financial architecture.
Bio
Tobias Berg is Professor of Finance at Goethe University Frankfurt, Research Professor at Deutsche Bundesbank, a Regular Research Visitor at the ECB, and a research fellow at CEPR. His research focuses on financial intermediation with a recent focus on financial technology, climate change, and real estate markets. Tobias Berg serves as an Associate Editor at the Review of Finance and previously served as an Associate Editor of the Review of Financial Studies. He has received the Review of Financial Studies Distinguished Referee Award, was ranked among the Top 10 Economists in Germany, and was awarded a European Research Council Consolidator Grant for his work on Banking and Climate Change. Tobias Berg has won a best teaching award for his courses on corporate finance as well as a star lecturer award for his course on financial intermediation.