Opportunities and challenges associated with the development of FinTech and Central Bank Digital Currency

Stijn Claessens (), Lin Cong, Fariborz Moshirian and Cyn-Young Park ()

Journal of Financial Stability, 2024, vol. 73, issue C

Abstract: Central banks around the world are exploring the possibility of Central Bank Digital Currencies (CBDCs) for retail and wholesale use. While no major economy is yet to fully introduced a CBDC, some countries have begun pilot programs. The purpose of this paper is to highlight the potential benefits and risks associated with CBDCs, including challenges and opportunities associated with proposed CBDC regulation in the United States and the European Union. The paper also discusses the CBDC landscape in Asia. It highlights some of the key findings of the research presented in this special issue on FinTech and CBDCs. Lastly, the paper offers thoughts for potential future research in areas such as the actual designs of CBDCs and their uses, ‘DeFi’ versus ‘CeFi’, their interoperability and stability, and concerns over cybercrime.

Keywords: Central Bank Digital Currency; Regulation of CBDC in the United States and the European Union; CBDC landscape in Asia; Potential future research directions (search for similar items in EconPapers)
JEL-codes: E42 E58 G21 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finsta:v:73:y:2024:i:c:s1572308924000652

DOI: 10.1016/j.jfs.2024.101280

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