• Home
  • Login
  • Register
Currency Insider
  • Home
  • Reading Library
  • CBDC Think Tank
SUBSCRIBE
No Result
View All Result
Currency Insider
  • Home
  • Reading Library
  • CBDC Think Tank
Currency Insider
No Result
View All Result

Designing central bank digital currencies

by CBDC Insider Staff
August 15, 2020
in Uncategorized
Reading Time: 1min read
0
Designing central bank digital currencies
Share on FacebookShare on Twitter

RELATED STORIES

The Federal Reserve Should Drop FedNow And Any Plans To Launch A CBDC

The Federal Reserve Should Drop FedNow And Any Plans To Launch A CBDC

December 17, 2022
Bank of England seeks applications for £200K CBDC wallet prototype

Bank of England seeks applications for £200K CBDC wallet prototype

December 12, 2022

We study the optimal design of a central bank digital currency (CBDC) in an environment where agents sort into cash, CBDC, and bank deposits according to their preferences over anonymity and security; and where network effects make the convenience of a payment instrument depend on the number of its users. A CBDC can be designed with attributes similar to cash or deposits, and can be interest bearing: a CBDC that closely competes with deposits depresses bank credit and output, while a cash-like CBDC may lead to the disappearance of cash. Then, the optimal CBDC design trades off bank intermediation against the social value of maintaining diverse payment instruments. When network effects matter, an interest-bearing CBDC alleviates the central bank’s tradeoff.

Continue read: https://www.econstor.eu/handle/10419/222832

Previous Post

People’s Bank digital currency test in major cities such as Beijing, China

Next Post

Thailand’s Central Bank Takes a Close Look At DeFi Use Cases

Next Post
Thailand’s Central Bank Takes a Close Look At DeFi Use Cases

Thailand’s Central Bank Takes a Close Look At DeFi Use Cases

© 2022 CBDC Insider

No Result
View All Result
  • Home
  • Map
  • Reading Library
  • CBDC Think Tank
  • Partners
    • DEA
  • Login
  • Register