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Rise of the Central Bank Digital Currencies

Author

Listed:
  • Raphael Auer

    (Bank for International Settlements)

  • Giulio Cornelli

    (Bank for International Settlements, University of Zurich)

  • Jon Frost

    (Bank for International Settlements, Cambridge Centre for Alternative Finance)

Abstract

Central banks around the world are researching and developing central bank digital currencies (CBDCs). Yet the motivations for issuance, policy approaches, and technical designs differ across countries. We set out a comprehensive database of CBDC projects and technical approaches, and investigate the economic and institutional factors that correlate with CBDC project efforts. Most projects are found in economies with high mobile phone use and a high capacity for innovation. Work on retail CBDCs is more advanced where the informal economy is larger. Many central banks are considering architectures in which a CBDC is a direct cash-like claim on the central bank, but the private sector handles all retail services.

Suggested Citation

  • Raphael Auer & Giulio Cornelli & Jon Frost, 2023. "Rise of the Central Bank Digital Currencies," International Journal of Central Banking, International Journal of Central Banking, vol. 19(4), pages 185-214, October.
    • Handle: RePEc:ijc:ijcjou:y:2023:q:4:a:5
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    References listed on IDEAS

    as
    1. Hanna Armelius & Carl Andreas Claussen & Scott Hendry, 2020. "Is Central Bank Currency Fundamental to the Monetary System?," Discussion Papers 2020-2, Bank of Canada.
    2. Agur, Itai & Ari, Anil & Dell’Ariccia, Giovanni, 2022. "Designing central bank digital currencies," Journal of Monetary Economics, Elsevier, vol. 125(C), pages 62-79.
    3. Raphael Auer & Codruta Boar & Giulio Cornelli & Jon Frost & Henry Holden & Andreas Wehrli, 2021. "CBDCs beyond borders: results from a survey of central banks," BIS Papers, Bank for International Settlements, number 116.
    4. Raphael Auer & Rainer Boehme, 2020. "The technology of retail central bank digital currency," BIS Quarterly Review, Bank for International Settlements, March.
    5. Cyril Monnet & Hyun Song Shin & Jon Frost & Leonardo Gambacorta & Raphael Auer & Tara Rice, 2022. "Central Bank Digital Currencies: Motives, Economic Implications, and the Research Frontier," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 697-721, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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