## Digital Money Across Borders: Macro-Financial Implications

_Policy Papers, October 19, 2020_

## Source details

**Canonical URL:** [Digital Money Across Borders: Macro-Financial Implications](https://www.imf.org/en/publications/policy-papers/issues/2020/10/17/digital-money-across-borders-macro-financial-implications-49823)

## Other formats

- [Markdown version](/en/publications/policy-papers/issues/2020/10/17/digital-money-across-borders-macro-financial-implications-49823/index.md)
- [Structured JSON version](/en/publications/policy-papers/issues/2020/10/17/digital-money-across-borders-macro-financial-implications-49823/index.json)
- [Bundle manifest](/en/publications/policy-papers/issues/2020/10/17/digital-money-across-borders-macro-financial-implications-49823/bundle-manifest.json)

## Bibliographic details
- Published: October 19, 2020
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9781513559209.007

---

### Summary
- Rapid ongoing progress with digital technologies has increased the prospects for adoption of new forms of digital money for both domestic and international transactions.
- New forms of digital money discussed include central bank digital currencies (CBDCs) and the so-called global stable coins (GSCs) proposed by large technological companies or platforms.
- The paper explores the complex interactions between the incentives to adopt and use CBDCs and GSCs across borders and discusses the potential macro-financial effects.

### Major themes and focus areas
- Interactions between cross-border adoption incentives for:
  - Central Bank digital currencies (CBDCs)
  - Global stable coins (GSCs)
- Potential macro-financial effects arising from cross-border use of CBDCs and GSCs
- Issues related to:
  - Currency competition
  - Dollarization
  - Transaction costs
  - Medium of exchange and unit of account roles
  - Implications for monetary policy and financial systems

### Subjects and keywords
- Subjects:
  - Central Bank digital currencies
  - Currencies
  - Digital currencies
  - Digital wallets
  - Dollarization
  - Monetary policy
  - Money
  - Technology
- Keywords:
  - CBDC issuer
  - Central Bank digital currencies
  - Currencies
  - currency competition
  - Digital currencies
  - Digital wallets
  - Dollarization
  - fiat currency
  - financial system
  - foreign currency
  - Global
  - GSC adoption
  - medium of exchange
  - PP
  - transaction costs
  - U.S. dollar
  - unit of account

---

## Content in this bundle

- **Policy Paper**
  - [Policy Paper (Markdown version)](/-/media/files/publications/pp/2020/english/ppea2020050.pdf.md){rel="alternate" type="text/markdown"}
  - [Policy Paper (PDF)](/-/media/files/publications/pp/2020/english/ppea2020050.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/policy-papers/issues/2020/10/17/digital-money-across-borders-macro-financial-implications-49823_