Expected Macroeconomic Effects of Issuing a Retail CBDC

Constanza Martínez, Julián Parra-Polanía, Tatiana Mora-Arbeláez and Angélica Lizarazo-Cuéllar

Borradores de Economia from Banco de la Republica de Colombia

Abstract: This document reviews the potential macroeconomic effects of issuing a central bank digital currency (CBDC) for the use of individuals and businesses. A careful selection of the architecture, and the economic and technological design aspects of this digital form of central bank money that best suit the needs of Colombian economy is made to frame the analytical approach used to study these issues. The most salient results of the related literature are reviewed to establish the consequences of undertaking this initiative. For the set of selected assumptions, we find that the expected macroeconomic consequences are negligible. ******RESUMEN: Este documento revisa los potenciales efectos macroeconómicos de emitir una moneda digital de banco central (CBDC) para uso de las personas y negocios. Se realiza una selección cuidadosa de la arquitectura, y de los aspectos de diseño económico y tecnológico de esta forma de dinero digital que mejor se ajustarían a las necesidades de la economía colombiana, para enmarcar la aproximación analítica que se usa para estudiar estos temas. Se revisan los resultados más destacados de la literatura relacionada para establecer las consecuencias esperadas de adelantar esta iniciativa. Para el conjunto de supuestos seleccionados, encontramos que los efectos macroeconómicos esperados son muy pequeños.

Keywords: CBDC; macroeconomic effects; digital money; financial intermediation; efectos macroeconómicos; dinero digital; intermediación financiera (search for similar items in EconPapers)
JEL-codes: E41 E42 E44 E51 E52 G21 (search for similar items in EconPapers)
Pages: 40
Date: 2023-08
New Economics Papers: this item is included in nep-ban, nep-cba, nep-fdg, nep-mac, nep-mon and nep-pay
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https://doi.org/10.32468/be.1247

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