Central Bank Digital Currencies: Motives, Economic Implications, and the Research Frontier

Auer, Raphael; Frost, Jon; Gambacorta, Leonardo; Monnet, Cyril; Rice, Tara; Shin, Hyun Song (2022). Central Bank Digital Currencies: Motives, Economic Implications, and the Research Frontier. Annual review of economics, 14(1), pp. 697-721. Annual Reviews 10.1146/annurev-economics-051420-020324

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In just a few years, central banks have rapidly ramped up their research and development efforts on central bank digital currencies (CBDCs). A growing body of economic research informs these activities, often focusing on the “reserves for all” aspect of CBDCs for retail use. However, CBDCs should be considered in the full context of the digital economy and the centrality of data, which raises concerns around competition, payment system integrity, and privacy. This review gives a guided tour of the growing CBDC literature on the microeconomic considerations related to operation architectures, technologies, and privacy as well as the macroeconomic implications for the financial system, financial stability, and monetary policy. A set of questions, particularly on the cross-border dimensions of CBDCs, remains unresolved and calls for further work to expand the research frontier.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Economics

UniBE Contributor:

Monnet, Cyril

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

ISSN:

1941-1383

Publisher:

Annual Reviews

Language:

English

Submitter:

Julia Alexandra Schlosser

Date Deposited:

19 Dec 2022 13:55

Last Modified:

19 Dec 2022 18:39

Publisher DOI:

10.1146/annurev-economics-051420-020324

BORIS DOI:

10.48350/176051

URI:

https://boris.unibe.ch/id/eprint/176051

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