Staff Discussion Notes

Casting Light on Central Bank Digital Currencies

Author/Editor:

Tommaso Mancini Griffoli ; Maria Soledad Martinez Peria ; Itai Agur ; Anil Ari ; John Kiff ; Adina Popescu ; Celine Rochon

Publication Date:

November 12, 2018

Electronic Access:

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Summary:

Digitalization is reshaping economic activity, shrinking the role of cash, and spurring new digital forms of money. Central banks have been pondering wheter and how to adapt. One possibility is central bank digital currency (CBDC)-- a widely accessible digital form of fiat money that could be legal tender. This discussion note proposes a conceptual framework to assess the case for CBDC adoption from the perspective of users and central banks. It discusses possible CBDC designs, and explores potential benefits and costs, with a focus on the impact on monetary policy, financial stability, and integrity. This note also surveys research and pilot studies on CBDC by central banks around the world.

Series:

Staff Discussion Notes No. 18/08

Subject:

Bank accounting Bank liquidity Bank rates Central banking Central Banks Currencies Lender of last resort Monetary policy Money