 Today’s Recomposition of the Money SupplyJoseph Huber () Chapter Chapter 6 in The Monetary Turning Point, 2023, pp 77-115 from Springer Abstract: Abstract Today, the future belongs to digital money, for it is technologically superior to book money. Central Bank Digital Currency (CBDC) and private digital currencies—be they stablecoins or unbacked cryptos—are vying to succeed bank money as the dominant type of money. CBDC is likely to emerge from this as the winner, because CBDC is superior to private cryptos by virtue of being legal tender and safe-stock base money, and also because of the no longer negligible constitutional need to take back monetary control and be able to implement monetary policy effectively. Bank money, presently still dominant, competes against both CBDC and private digital monies to assert its position. Bank money may well persist for a longer period of time, albeit gradually declining in importance. Central-bank reserves will over time be going down together with bank money, or be replaced with CBDC early on. Solid cash is not a systemically defining factor any more. Keywords: Digital tokens superior to book money; Struggle between CBDC and private cryptocurrencies for future dominance; Struggle between stablecoins and unbacked cryptocurrencies; Bank money on the defensive; Long-term end for cash and reserves (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-23957-1_6 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-23957-1_6 Access Statistics for this chapter More chapters in Springer Books from Springer |
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