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Monetary Reform, Central Banks, and Digital Currencies

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Abstract

The modern debate about monetary reform has taken on a new twist with the development of private digital currencies employing distributed ledger payments technology. In order to consider the appropriate state response, we go back to first principles of money and finance and the case for financial regulation: to ensure provision of a safe money asset and a stable supply of credit within an inherently unstable financial system. We consider calls to privatize money or to restrict money issue to the state against the background of the increasing marketization of the financial sector and money itself. Following an analysis of private digital currencies, we then consider proposals for state issue of digital currency. It is concluded that the focus of attention should instead be on updating of regulation, not only to encompass digital currencies but also to address other innovations in the financial sector that generate credit and liquidity, in order to meet the needs of the real economy.

Suggested Citation

  • Sheila Dow, 2019. "Monetary Reform, Central Banks, and Digital Currencies," International Journal of Political Economy, Taylor & Francis Journals, vol. 48(2), pages 153-173, April.
    • Handle: RePEc:mes:ijpoec:v:48:y:2019:i:2:p:153-173
    DOI: 10.1080/08911916.2019.1624317
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    Cited by:

    1. Huosong Xia & Yangmei Gao & Justin Zuopeng Zhang, 2023. "Understanding the adoption context of China’s digital currency electronic payment," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-27, December.
    2. Li, Zhenghui & Yang, Cunyi & Huang, Zhehao, 2022. "How does the fintech sector react to signals from central bank digital currencies?," Finance Research Letters, Elsevier, vol. 50(C).
    3. Hoang, Yen Hai & Ngo, Vu Minh & Bich Vu, Ngoc, 2023. "Central bank digital currency: A systematic literature review using text mining approach," Research in International Business and Finance, Elsevier, vol. 64(C).
    4. Jamie Morgan, 2023. "Systemic stablecoin and the brave new world of digital money," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 47(1), pages 215-260.
    5. Samuel Demeulemeester, 2022. "What analytical framework for Sovereign Money? Some insight from the 100% Money literature, and a comment on criticisms," Working Papers hal-03751756, HAL.
    6. Joerg Bibow, 2025. "Banking on Payments?," Economics Working Paper Archive wp_1091, Levy Economics Institute.
    7. Aniruddha Dutta & Saket Kumar & Meheli Basu, 2020. "A Gated Recurrent Unit Approach to Bitcoin Price Prediction," JRFM, MDPI, vol. 13(2), pages 1-16, February.
    8. Qing Shi & Xiaoqi Sun, 2020. "A Scientometric Review of Digital Currency and Electronic Payment Research: A Network Perspective," Complexity, Hindawi, vol. 2020, pages 1-17, November.
    9. Ozili, Peterson K, 2024. "Artificial intelligence in central banking: benefits and risks of AI for central banks," MPRA Paper 120151, University Library of Munich, Germany.
    10. Bibi, Samuele, 2023. "Money in the time of crypto," Research in International Business and Finance, Elsevier, vol. 65(C).
    11. Eichacker, Nina, 2025. "Increasing Stability in the Digital Payment Space: The Potential Institutional Benefits of Central Bank Digital Currencies," SocArXiv 8muc4, Center for Open Science.
    12. Mohanamani Palanisamy & Maria Tresita Paul Vincent & Md Billal Hossain, 2025. "Financial Literacy and Behavioral Intention to Use Central Banks’ Digital Currency: Moderating Role of Trust," JRFM, MDPI, vol. 18(3), pages 1-13, March.
    13. repec:osf:socarx:8muc4_v1 is not listed on IDEAS

    More about this item

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • G1 - Financial Economics - - General Financial Markets

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