Istituto di Economia Internazionale - Central Bank Digital Currency: Is it Really Needed?

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Corresponding Author:
Lorenzo Bini Smaghi, Luiss University, Rome - Italy

Central Bank Digital Currency: Is it Really Needed?

Volume 76 - Issue 3 - The Evolving Cryptoecosystem: Implications for the Financial Services Markets, August 2023
(pp. 417-428)
JEL classification: E42; E52; E58
Keywords: Central Bank Digital Currency; Digital Euro; Monetary Policy; Payment Systems

Abstract

Several Central Banks around the world have embarked in projects for issuing a digital currency that would be directly available to retail customers. The European Central Bank started analyzing the issue in October 2021 with a view to take a decision on the implementation of the project by the end of 2023. This article mainly focusses on the European project of issuing a Central Bank Digital Currency (CBDC). The objective is to assess the motivations of such a project and weigh the advantages and disadvantages against the costs and potential risks.

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Bibliography

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