CBDC – How Dangerous is Programmability?

Among Central Bankers, the issuance of a Central Bank Digital Currency (CBDC) is a topic of great interest. The Bank for International Settlement (BIS) has recently published a report showing that many central banks are conducting research and experiments and a small number are already deploying pilot projects. Research projects have been set up by European Central Bank (ECB), […]

What to Expect When Central Bank Digital Currencies Cross Borders—the Spillover Effects and Corresponding Policy Responses

Central bank digital currencies (CBDCs) impact a sovereign state’s monetary policy and financial markets, and necessitate a rethink of the roles of modern states and central banks. The current literature around CBDCs focuses on two dimensions: (1) the impact of CBDC on monetary and macroprudential policies, and (2) the institutional infrastructure, legal mandates, and technical design […]

Dinero Electrónico: Deployment Notes of the First CBDC

Convenience, speed, and cost are important considerations for electronic payments. Recent events surrounding the COVID-19 pandemic may accelerate these trends as peoples’ willingness to handle cash may be waning. As policy makers try to assess the benefits and risks of Central Bank Digital Currencies (CBDC) researchers at central banks and academic institutions have contributed to the discussion with theoretical works […]