Getting the balance right: Crypto, stablecoin and CBDC

Wilko Bolt (), Vera Lubbersen and Peter Wierts

Working Papers from DNB

Abstract: The rise of new forms of private money is reviving a long-standing debate on the appropriate balance between private and public interests in money and payments. The main aim of this paper is to explore an integrated policy analysis of various digital assets that may function as money: bank deposits, non-backed crypto’s, stablecoins and Central Bank Digital Currency (CBDC). In our view, public and private money should coexist to get the best of both worlds: trust and innovation. Getting the balance right is however not an easy task. It requires a digital update of public money and effective regulation of crypto’s and stablecoins. We argue that convertibility between public and private money should be a leading principle both for the design of CBDC and for the regulation of stablecoins that could potentially be widely adopted as a means of payment.

Keywords: digital payments; crypto’s; stablecoins; CBDC; regulation (search for similar items in EconPapers)
JEL-codes: D4 E4 G2 (search for similar items in EconPapers)
Date: 2022-01
New Economics Papers: this item is included in nep-cba, nep-mon and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:dnb:dnbwpp:736

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