Abstract
AbstractThe issuance of retail central bank digital currency (CBDC) involves a transfer of risk from commercial banks to the central bank. Mechanisms that limit the transfer of risk, such as an unattractive interest rate, a quantity ceiling or the non-convertibility of cash and reserves into CBDC, are likely to discourage the use of CBDC as a medium of exchange and thus defeat the purpose of issuing CBDC.
Publisher
Springer Science and Business Media LLC
Reference29 articles.
1. Ahnert, T., Assenmacher, K., Hoffmann, P., Leonello, A., Monnet, C., Porcellacchia, D. (2022). The economics of central bank digital currency. ECB Working Paper Series, No. 2713.
2. Agur, I., Ari, A., & Dell’Ariccia G. (2019). Designing central bank digital currencies. IMF Working Paper, No. 19/252.
3. Andolfatto, D. (2020). Assessing the impact of central bank digital currency on private banks. The Economic Journal, 131, 525–540.
4. Assenmacher, K. (2020). Monetary policy implications of digital currencies. SUERF Policy Note, No. 165.
5. Assenmacher, K., Bitter, L., & Ristiniemi, A. (2023). CBDC and business cycle dynamics in a new monetarist new Keynesian model. ECB Working Paper, No. 2023/2811.