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Nicht die Zeit für digitales Notenbankgeld. Warum Cash weiterhin unersetzbar ist
[Not the time for central bank digital currency. Why cash is still irreplaceable]

Author

Listed:
  • Belke, Ansgar
  • Beretta, Edoardo

Abstract

The following short article aims at presenting some relevant (though less discussed) aspects of concern about introducing central bank digital currency – no matter if intended as a substitute or complement to cash. For example, concrete referral to potential effects such as bank runs and capital flight is also made. Its coexistence with limits for cash payments already existing in several European countries is analytically questioned too. What are also the structural characteristics making paper money and coins (which are the only means of payment directly issued by the central bank) still irreplaceable? These among other topics (like the effects of COVID-19 pandemic for limits for cash payments) will be dealt with following a discursive, yet rigorously macro-economically corroborated approach.

Suggested Citation

  • Belke, Ansgar & Beretta, Edoardo, 2020. "Nicht die Zeit für digitales Notenbankgeld. Warum Cash weiterhin unersetzbar ist [Not the time for central bank digital currency. Why cash is still irreplaceable]," MPRA Paper 100932, University Library of Munich, Germany, revised Jun 2020.
    • Handle: RePEc:pra:mprapa:100932
    as

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    File URL: https://mpra.ub.uni-muenchen.de/100932/1/MPRA_paper_100932.pdf
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    References listed on IDEAS

    as
    1. Sinn, Hans-Werner, 2017. "The Euro Trap: On Bursting Bubbles, Budgets, and Beliefs," OUP Catalogue, Oxford University Press, number 9780198791447, Decembrie.
    2. Edoardo Beretta, 2020. "The fourfold relation between the essence of money, inflation, bubbles and debt—A theoretical macrofounded analysis," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 49(3), September.
    3. Max Raskin & David Yermack, 2016. "Digital Currencies, Decentralized Ledgers, and the Future of Central Banking," NBER Working Papers 22238, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bargeldobergrenzen; digitales Notenbankgeld; Zahlungsmittel.;
    All these keywords.

    JEL classification:

    • 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

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