Casting Light on Central Bank Digital Currencies
November 14, 2018
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Summary
The paper is organized in five sections. The first offers an overview of CDBCs—what they are, why central banks might issue CDBCs, and how they might design these. Using a stylized model, the second section offers a conceptual discussion of the tradeoffs between different CDBC designs and examines some of the implications for financial intermediation. The third section looks beyond the model at potential side effects of introducing a CDBC on bank funding and business models, run risk, monetary policy transmission, and cross-border payments. The fourth section offers an overview of central bank investigations and intentions relative to the introduction of a CDBC. The last section concludes and summarizes the main messages from the paper.
Subject: Central banking, Currencies, Monetary policy, Money
Keywords: Central Bank Digital Currencies, Monetary Policy, Money
Pages:
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DOI:
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Series:
Staff Discussion Notes No. 18/08
Stock No:
SDNEA2018008
ISBN:
9781484384572
ISSN:
2221-030X
