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Proceeding with caution - a survey on central bank digital currency

Author

Listed:
  • Christian Barontini
  • Henry Holden

Abstract

The hypothetical benefits and risks of central bank digital currencies are being widely discussed. This BIS paper adds to these discussions by taking stock of how progress and plans in this area are developing, based on a global survey of central banks. Responses show that central banks are proceeding with caution and most are only at a conceptual stage with their work. However, a handful have moved to considering practical issues and a couple of central banks with idiosyncratic circumstances might issue a digital currency in the short or medium term.

Suggested Citation

  • Christian Barontini & Henry Holden, 2019. "Proceeding with caution - a survey on central bank digital currency," BIS Papers, Bank for International Settlements, number 101.
    • Handle: RePEc:bis:bisbps:101
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    References listed on IDEAS

    as
    1. Raphael Auer & Stijn Claessens, 2018. "Regulating cryptocurrencies: assessing market reactions," BIS Quarterly Review, Bank for International Settlements, September.
    2. Morten Linnemann Bech & Umar Faruqui & Frederik Ougaard & Cristina Picillo, 2018. "Payments are a-changin' but cash still rules," BIS Quarterly Review, Bank for International Settlements, March.
    3. Morten Linnemann Bech & Yuuki Shimizu & Paul Wong, 2017. "The quest for speed in payments," BIS Quarterly Review, Bank for International Settlements, March.
    4. Kahn, Charles M. & Roberds, William, 2009. "Why pay? An introduction to payments economics," Journal of Financial Intermediation, Elsevier, vol. 18(1), pages 1-23, January.
    5. Morten Linnemann Bech & Rodney Garratt, 2017. "Central bank cryptocurrencies," BIS Quarterly Review, Bank for International Settlements, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Alex Cukierman, 2020. "Reflections on welfare and political economy aspects of a central bank digital currency," Manchester School, University of Manchester, vol. 88(S1), pages 114-125, September.
    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. Sebastian Schich, 2019. "Do Fintech and Cryptocurrency Initiatives Make Banks Less Special?," Business and Economic Research, Macrothink Institute, vol. 9(4), pages 89-116, December.
    4. 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.
    5. Emanuele Urbinati & Alessia Belsito & Daniele Cani & Angela Caporrini & Marco Capotosto & Simone Folino & Giuseppe Galano & Giancarlo Goretti & Gabriele Marcelli & Pietro Tiberi & Alessia Vita, 2021. "A digital euro: a contribution to the discussion on technical design choices," Mercati, infrastrutture, sistemi di pagamento (Markets, Infrastructures, Payment Systems) 10, Bank of Italy, Directorate General for Markets and Payment System.
    6. Jooyong Jun & Eunjung Yeo, 2021. "Central bank digital currency, loan supply, and bank failure risk: a microeconomic approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-22, December.
    7. Van Roosebeke, Bert & Defina, Ryan, 2021. "Central Bank Digital Currencies: The Motivation," MPRA Paper 111006, University Library of Munich, Germany.
    8. Pelin Berkmen & Ms. Kimberly Beaton & Mr. Dmitry Gershenson & Mr. Javier Arze del Granado & Kotaro Ishi & Miss Marie S Kim & Emanuel Kopp & Mrs. Marina V Rousset, 2019. "Fintech in Latin America and the Caribbean: Stocktaking," IMF Working Papers 2019/071, International Monetary Fund.
    9. Assenmacher, Katrin & Berentsen, Aleksander & Brand, Claus & Lamersdorf, Nora, 2021. "A unified framework for CBDC design: remuneration, collateral haircuts and quantity constraints," Working Paper Series 2578, European Central Bank.
    10. Bian, Wenlong & Ji, Yang & Wang, Peng, 2021. "The crowding-out effect of central bank digital currencies: A simple and generalizable payment portfolio model," Finance Research Letters, Elsevier, vol. 43(C).
    11. Bert Van Roosebeke & Ryan Defina, 2021. "Five Emerging Issues in Deposit Insurance," IADI Policy Briefs 4, International Association of Deposit Insurers.
    12. Jia, Pengfei, 2020. "Negative Interest Rates on Central Bank Digital Currency," MPRA Paper 103828, University Library of Munich, Germany.
    13. Ohik Kwon & Seungduck Lee & Jaevin Park, 2020. "Central Bank Digital Currency, Tax Evasion, Inflation Tax, and Central Bank Independence," Working Papers 2020-26, Economic Research Institute, Bank of Korea.
    14. Mr. Marco Gross & Christoph Siebenbrunner, 2019. "Money Creation in Fiat and Digital Currency Systems," IMF Working Papers 2019/285, International Monetary Fund.
    15. Christine A. Parlour & Uday Rajan & Johan Walden, 2022. "Payment System Externalities," Journal of Finance, American Finance Association, vol. 77(2), pages 1019-1053, April.

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