IDEAS home Printed from https://ideas.repec.org/a/cbk/journl/v11y2022i3p137-154.html
   My bibliography  Save this article

Central Bank Digital Currency: Scenarios of Implementation and Potential Consequences for Monetary System

Author

Listed:
  • Patryk Kaczmarek

    (Institute of Banking and Finance, Faculty of Management, University of Gdansk, Poland)

Abstract

Computerization of social life enabled market participants to search for new forms of electronic payments. The share of cash in total payments is systematically decreasing, which poses the risk of being supplanted by other instruments, including cryptocurrencies. Central banks, therefore, faced the challenge of adjusting their issuing activities to the current social and market conditions, which resulted in the emergence of the concept and discussion of the introduction of digital cash. The purpose of this paper is to examine the abovementioned issues and indication of potential scenarios for the introduction of central bank digital currency with an indication of potential consequences for the banking sector. The thesis of this paper is the following statement: The emergence of digital money of the central bank may significantly change the nature of commercial banks' activities - including potentially eliminating their role in issuing cashless money.

Suggested Citation

  • Patryk Kaczmarek, 2022. "Central Bank Digital Currency: Scenarios of Implementation and Potential Consequences for Monetary System," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 11(3), pages 137-154.
    • Handle: RePEc:cbk:journl:v:11:y:2022:i:3:p:137-154
    as

    Download full text from publisher

    File URL: http://www.cbcg.me/repec/cbk/journl/vol11no3-7.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cristina Sbîrneciu & Nicoleta-Valentina Florea, 2023. "An exploratory case study: Romania’s digital innovation opportunities due to rise of digital currencies," Journal of Financial Studies, Institute of Financial Studies, vol. 8(14), pages 143-164, May.

    More about this item

    Keywords

    Central banking; commodity money; cash; central bank digital currency; deposits; checks; cryptocurrencies.;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbk:journl:v:11:y:2022:i:3:p:137-154. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/cbmgvme.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.