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Central Banks Digital Currency - Opportunities and Innovation

Author

Listed:
  • Andrei-Dragos Popescu

    (University of Craiova)

Abstract

The issuance of a Central Bank Digital Currency (CBDC) is a very important step towards a fully digital economic environment and the consequences of such a direction are under debate by many policymakers around the world. There is a clear interest within the space as governments around the world are exploring the viability of a digital currency and according to the latest Bank for International Settlements (2021) report: 86% of the world's central banks have begun to conceptualize and research the potential of CBDC, 60% are developing Proof-of-Concepts (PoC) and 14% are implementing pilot projects. This paper provides a comprehensive overview for finance and investment participants about the topic of Central Bank Digital Currencies. The recent international exploration into the future of Central Bank money is complex as it is interconnected with two equally dynamic entities: Digital Currencies and Blockchain/Distributed Ledger Technology.

Suggested Citation

  • Andrei-Dragos Popescu, 2021. "Central Banks Digital Currency - Opportunities and Innovation," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 813-822, August.
    • Handle: RePEc:ovi:oviste:v:xxi:y:2021:i:1:p:813-822
    as

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    References listed on IDEAS

    as
    1. Barrdear, John & Kumhof, Michael, 2016. "The macroeconomics of central bank issued digital currencies," Bank of England working papers 605, Bank of England.
    2. Jesus Fernandez-Villaverde & Daniel Sanches & Linda Schilling & Harald Uhlig, 2021. "Central Bank Digital Currency: Central Banking For All?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 41, pages 225-242, July.
    3. Stephen Williamson, 2022. "Central Bank Digital Currency: Welfare and Policy Implications," Journal of Political Economy, University of Chicago Press, vol. 130(11), pages 2829-2861.
    4. Codruta Boar & Andreas Wehrli, 2021. "Ready, steady, go? - Results of the third BIS survey on central bank digital currency," BIS Papers, Bank for International Settlements, number 114.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Central Bank Digital Currency; financial stability; monetary policy;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F - International Economics
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy

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