Preconditions for a General-Purpose Central Bank Digital Currency

Jess Cheng, Angela Lawson and Paul Wong
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Angela Lawson: https://www.minneapolisfed.org/people/angela-lawson

No 2021-02-24-1, FEDS Notes from Board of Governors of the Federal Reserve System (U.S.)

Abstract: Over the last few years, interest in the potential issuance of a general-purpose central bank digital currency (CBDC) has increased. Introducing and operating a CBDC would require actions by many stakeholders and not just the central bank. In view of the far-reaching implications of introducing a new form of money to the public, the decision cannot be taken lightly. This paper outlines foundational preconditions and proposes areas of work that may help achieve them prior to the possible implementation of a potential future general-purpose CBDC in the United States. These foundational preconditions include clear policy objectives, broad stakeholder support, a strong legal framework, robust technology, and readiness for market acceptance and adoption.

Date: 2021-02-24
New Economics Papers: this item is included in nep-mon and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfn:2021-02-24-1

DOI: 10.17016/2380-7172.2839

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