Casting Light on Central Bank Digital Currencies

Tommaso Mancini-Griffoli, Maria Martinez Peria, Itai Agur, Anil Ari, John Kiff, Adina Popescu and Celine Rochon

No 2018/008, IMF Staff Discussion Notes from International Monetary Fund

Abstract: Digitalization is reshaping economic activity, shrinking the role of cash, and spurring new digital forms of money. Central banks have been pondering wheter and how to adapt. One possibility is central bank digital currency (CBDC)-- a widely accessible digital form of fiat money that could be legal tender. This discussion note proposes a conceptual framework to assess the case for CBDC adoption from the perspective of users and central banks. It discusses possible CBDC designs, and explores potential benefits and costs, with a focus on the impact on monetary policy, financial stability, and integrity. This note also surveys research and pilot studies on CBDC by central banks around the world.

Keywords: SDN; ease liquidity pressure; CBDC token; CBDC infrastructure; rival CBDC; store of value; unit of account; money; central bank digital currencies; monetary policy; CBDC adoption; CBDC development; market power; fiat money; transaction costs; due diligence; Currencies; Bank deposits; Commercial banks; Central bank policy rate; Caribbean (search for similar items in EconPapers)
Pages: 39
Date: 2018-11-12
New Economics Papers: this item is included in nep-mac, nep-mon and nep-pay
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