A literature review on the design and implementation of central bank digital currencies
Bibliographic Data
| ID | 16965488 |
|---|---|
| Authors | Huseyin Oguz Genc (0000-0002-5997-1763, The University of Tokyo, corresponding author), Soichiro Takagi (0000-0002-0543-4727, The University of Tokyo) |
| Year | 2024 |
| Volume | 18 |
| Issue | 1 |
| Pages | 197-225 |
| Publication date | 2024-02-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Journal of Economic Policy Studies (JOURNAL) |
| Journal identifiers | ISSN: 2524-4892 • E-ISSN: 1881-4387 |
| Publisher | Springer Science and Business Media LLC (PUBLISHER) |
| DOI | 10.1007/s42495-023-00125-9 |
| OpenAlex | W4391167535 |
| Language | EN |
| Citations received | 2 |
| References cited | 56 |
Within the last five years, research on Central Bank Digital Currencies (CBDCs) has increased with increased momentum. Particular events, such as the growth of private digital currencies, Facebook’s attempt to release a stablecoin, the long-term development of Chinese CBDC, and Covid-19, are the leading causes for this growing significant interest. Most recently, the interest converged in more specific design and implementation directions. Many scholars show particular interest in account-based retail CBDCs with interest-bearing capabilities. In contrast, few others urge caution by favoring a wholesale model that is representative of the setting of the current financial system. Unsurprisingly, the primary source of such literature stems from global financial institutions and their close central banking networks. Academia and research institutions have recently increased their focus on the potential economic and social impacts of such purported design choices. As specific design principles for CBDCs have started to take shape, the policy objectives of implementing different CBDC designs are studied from the perspective of benefits and risks. These trade-offs are either generic or related to macroeconomic and financial stability implications. Evidence exists that purported generic benefits can often be achieved without CBDCs, while the purported monetary and fiscal policy benefits rely on theoretical results that lack real-world data. Some of the risks could be amplified depending on CBDC design choices. Theoretical and alternative literature is reviewed along with the evidence from use-case applications to spot the possible shortcomings in the current stage of the design and implementation literature of CBDCs. The scope is limited to the impact on economic policies and the relevant potential socioeconomic impact. The results show that further research and debate are needed from a multidisciplinary perspective
Business · Currency · Digital currency · Economics · Interest rate · Monetary economics · Monetary policy · Banking stability, regulation, efficiency · Blockchain Technology Applications and Security · FinTech, Crowdfunding, Digital Finance
Cryptocurrencies and CBDC
The genesis, design and implications of China’s central bank digital currency
A global perspective on central bank digital currency
The International Hierarchy of Money in Cross-Border Payment Systems
Central Bank Digital Currency
Bank Runs, Deposit Insurance, and Liquidity
Central Bank Digital Currency
Assessing the Impact of Central Bank Digital Currency on Private Banks
| Citations per year | 2 |
|---|---|
| Citation span | 2025 - 2026 (2) |
| Highly cited | No |