Thinking Fast and Slow about Central Bank Digital Currencies

Peterson Ozili

MPRA Paper from University Library of Munich, Germany

Abstract: Central banks are considering the issuance of a central bank digital currency to serve as a payment tool to support economic activities. A central bank digital currency can also serve secondary purposes that are related or unrelated to the statutory objectives of a central bank which is monetary and price stability. Many central banks are thinking too fast about central bank digital currencies – they are very optimistic about the potential benefits of central bank digital currencies. While such optimism is good, central banks also need to think slowly about central bank digital currency by paying serious attention to known risks and whether there is a unique use case for CBDC. This calls for cautious optimism and a need for central banks to think fast and slow about central bank digital currencies.

Keywords: CBDC; central bank digital currency; cryptocurrency; digital payment; thinking fast and slow (search for similar items in EconPapers)
JEL-codes: E40 E42 E49 E50 E52 E58 E59 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-cbe, nep-fdg, nep-inv, nep-mon and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:120774

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