{
  "title": "How Should Central Banks Explore Central Bank Digital Currency?",
  "publication": "Fintech Notes, September 8, 2023",
  "sourceUrl": "https://www.imf.org/en/publications/fintech-notes/issues/2023/09/08/how-should-central-banks-explore-central-bank-digital-currency-538504",
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  "summary": "Digitalization of the economy provides both challenges and opportunities. Central banks should ensure that they have the capacity to continue to meet their policy objectives in the digital age. It is in this context that central bank digital currency (CBDC) should be evaluated.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Digitalization of the economy provides both challenges and opportunities.\n- Central banks should ensure that they have the capacity to continue to meet their policy objectives in the digital age.\n- Central bank digital currency (CBDC) should be evaluated in this context: if designed appropriately, CBDCs could allow central banks to modernize payment systems and future-proof central bank money as the pace and shape of digitalization continues to evolve.\n- The decision to proceed with CBDC exploration and an eventual launch would need to be jurisdiction specific, depending on:\n  - the degree of digitalization of the economy,\n  - the legal and regulatory frameworks, and\n  - the central bank’s internal capacity."
    },
    {
      "heading": "Key findings",
      "content": "- CBDCs can modernize payment systems and future-proof central bank money when designed appropriately.\n- Jurisdiction-specific considerations are central to the decision to explore and launch a CBDC.\n- A dynamic decision-making framework can help central banks make decisions under uncertainty.\n- A phased and iterative approach allows central banks to adjust the pace, scale, and scope of CBDC projects as the domestic and international environment changes."
    },
    {
      "heading": "Decision-making framework (proposed)",
      "content": "- Dynamic framework enabling decision-making under uncertainty.\n- Phased and iterative approach to:\n  - adjust pace,\n  - adjust scale, and\n  - adjust scope\n  of CBDC projects in response to changing domestic and international conditions."
    },
    {
      "heading": "Policy recommendations and implementation approach",
      "content": "- Evaluate CBDC in light of digitalization’s impact on policy objectives.\n- Tailor exploration and launch decisions to jurisdiction-specific factors:\n  - degree of digitalization of the economy,\n  - legal and regulatory frameworks,\n  - central bank internal capacity.\n- Adopt a phased, iterative project design to retain flexibility and responsiveness.\n\n---\n\n Content in this bundle\n\n- How Should Central Banks Explore Central Bank Digital Currency?\n  - How Should Central Banks Explore Central Bank Digital Currency? (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - How Should Central Banks Explore Central Bank Digital Currency? (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/fintech-notes/issues/2023/09/08/how-should-central-banks-explore-central-bank-digital-currency-538504"
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    "Authors: Gabriel Soderberg, John Kiff, Hervé Tourpe, Marianne Bechara, Stephanie Forte, Kathleen Kao, Ashley Lannquist, Tao Sun, Akihiro Yoshinaga",
    "Published: September 8, 2023",
    "Series: Fintech Notes",
    "DOI: https://doi.org/10.5089/9798400253768.063",
    "Digitalization of the economy provides both challenges and opportunities.",
    "Central banks should ensure that they have the capacity to continue to meet their policy objectives in the digital age.",
    "Central bank digital currency (CBDC) should be evaluated in this context: if designed appropriately, CBDCs could allow central banks to modernize payment systems and future-proof central bank money as the pace and shape of digitalization continues to evolve.",
    "The decision to proceed with CBDC exploration and an eventual launch would need to be jurisdiction specific, depending on:",
    "CBDCs can modernize payment systems and future-proof central bank money when designed appropriately.",
    "Jurisdiction-specific considerations are central to the decision to explore and launch a CBDC.",
    "A dynamic decision-making framework can help central banks make decisions under uncertainty.",
    "A phased and iterative approach allows central banks to adjust the pace, scale, and scope of CBDC projects as the domestic and international environment changes.",
    "Dynamic framework enabling decision-making under uncertainty.",
    "Phased and iterative approach to:",
    "Evaluate CBDC in light of digitalization’s impact on policy objectives.",
    "Tailor exploration and launch decisions to jurisdiction-specific factors:",
    "Adopt a phased, iterative project design to retain flexibility and responsiveness.",
    "**How Should Central Banks Explore Central Bank Digital Currency?**"
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