The Economics of Central Bank Digital Currency

Toni Ahner, Katrin Assenmacher, Peter Hoffmann, Agnese Leonello, Cyril Monnet and Davide Porcellacchia
Additional contact information
Toni Ahner: European Central Bank, CEPR
Peter Hoffmann: European Central Bank
Agnese Leonello: European Central Bank
Davide Porcellacchia: European Central Bank

International Journal of Central Banking, 2024, vol. 20, issue 4, 221-274

Abstract: This paper provides a structured overview of the burgeoning literature on the economics of central bank digital currency (CBDC). We document the economic forces that shape the rise of digital money and review motives for the issuance of CBDC. We then study the implications for the financial system and discuss a number of policy issues and challenges. While the academic literature broadly echoes policymakers’ concerns about bank disintermediation and financial stability risks, it also provides conditions under which such adverse effects may not materialize. We also point to several knowledge gaps that merit further work, including data privacy and the study of end-user preferences for attributes of digital payment methods.

Date: 2024
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: The economics of central bank digital currency (2022)
Working Paper: The economics of central bank digital currency (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:ijc:ijcjou:y:2024:q:4:a:4

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