An analysis of the legal impact of central bank digital currency on the European payments landscape

Gisela Fonseca
Additional contact information
Gisela Fonseca: Legal Services Department, Banco de Portugal, Legal Services Department, 148 Rua do Comércio, Lisboa 1100-150, Portugal

Journal of Payments Strategy & Systems, 2019, vol. 13, issue 4, 288-299

Abstract: This paper considers the legal impact of a central bank digital currency (CBDC) on the European payments landscape. It opens with a discussion about the concept of money, its functions and the underlying theories. The analysis then discusses the concept of CBDCs and the various types of CBDC that are currently being advanced. The paper questions whether adoption of a pan-European CBDC would require a harmonised approach, or whether national solutions alone could suffice. The paper describes the legal aspects of the European payments landscape that would need to be adjusted in order to settle CBDC transactions without posing risks to payment system participants. The paper concludes by suggesting that this new form of money could broaden the discussions surrounding the institutional theory of money, and that a more cautious approach to the subject would be more likely to incline the European legislator to consider amendments to the Treaty on the Functioning of the European Union and the Statute of the European System of Central Banks, should any decision be taken to embrace a CBDC.

Keywords: money; central bank digital currency; payment systems; central banks; legal tender (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hstalks.com/article/5295/download/ (application/pdf)
https://hstalks.com/article/5295/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:jpss00:y:2019:v:13:i:4:p:288-299

Access Statistics for this article

More articles in Journal of Payments Strategy & Systems from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().