About Central Bank Digital Currencies (CBDCs)

Jack Clark Francis ()
Additional contact information
Jack Clark Francis: Department of Economics and Finance, Baruch College, New York, NY 10010, USA

Review of Pacific Basin Financial Markets and Policies (RPBFMP), 2023, vol. 26, issue 04, 1-11

Abstract: A Central Bank Digital Currency (CBDC) is a country’s fiat currency that exists in a digital form. This digital currency becomes a liability on the balance sheet of a nation’s central bank when it ceases to be a liability on the balance sheet of one of the nation’s commercial banks and gets transferred to the central bank. Instead of printing paper money, the central bank can create CBDCs by opening electronic bank accounts at commercial banks that are backed by the full faith and credit of the nation’s central bank. The goal of a CBDC is to provide the nation’s government, businesses and consumers with a liquid and accessible currency that supplies privacy, transferability, convenience, and financial security. If CBDCs become highly popular, someday the world might operate with only one global CBDC.

Keywords: FedNow; asset and liability management (ALM); unbankable; privacy; cryptocurrency; digitize (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0219091523500285
Access to full text is restricted to subscribers

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:wsi:rpbfmp:v:26:y:2023:i:04:n:s0219091523500285

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0219091523500285

Access Statistics for this article

Review of Pacific Basin Financial Markets and Policies (RPBFMP) is currently edited by Cheng-few Lee

More articles in Review of Pacific Basin Financial Markets and Policies (RPBFMP) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().