Casting Light on Central Bank Digital Currencies

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

November 12, 2018

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Tommaso Mancini-Griffoli, Maria Soledad Martinez Peria, Itai Agur, Anil Ari, John Kiff, Adina Popescu, and Celine Rochon. Casting Light on Central Bank Digital Currencies, (USA: International Monetary Fund, 2018) accessed June 16, 2025

Disclaimer: This Staff Discussion Note represents the views of the authors and does not necessarily represent IMF views or IMF policy. The views expressed herein should be attributed to the authors and not to the IMF, its Executive Board, or its management. Staff Discussion Notes are published to elicit comments and to further debate.

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.

Subject: Bank deposits, Banking, Central Bank digital currencies, Central bank policy rate, Commercial banks, Currencies, Financial institutions, Financial services, Money, Technology

Keywords: Bank deposits, Caribbean, CBDC adoption, CBDC development, CBDC infrastructure, CBDC token, Central bank digital currencies, Central bank policy rate, Commercial banks, Currencies, Due diligence, Ease liquidity pressure, Fiat money, Market power, Monetary policy, Money, Rival CBDC, SDN, Store of value, Transaction costs, Unit of account

Publication Details

Pages:

39
Volume:

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DOI:

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Issue:

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Series:

Staff Discussion Notes No. 2018/008
Stock No:

SDNEA2018008
ISBN:

9781484384572
ISSN:

2617-6750

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