Assessing the Impact of Central Bank Digital Currency on Private Banks
Bibliographic Data
| ID | 9716485 |
|---|---|
| Authors | David Andolfatto (0000-0003-0703-3967, Federal Reserve Bank of St. Louis, corresponding author) |
| Year | 2021 |
| Volume | 131 |
| Issue | 634 |
| Pages | 525-540 |
| Publication date | 2021-03-03 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (PUBLISHER • GB) |
| DOI | 10.1093/ej/ueaa073 |
| OpenAlex | W3122159891 |
| Language | EN |
| Citations received | 16 |
| References cited | 12 |
This paper investigates how a central bank digital currency can be expected to impact a monopolistic banking sector. The paper’s framework of analysis combines the Diamond (1965) model of government debt with the Klein (1971) and Monti (1972) model of a monopoly bank. The paper finds that the introduction of a central bank digital currency has no detrimental effect on bank lending activity and may, in some circumstances, even serve to promote it. Competitive pressure leads to a higher monopoly deposit rate which reduces profit but expands deposit funding through greater financial inclusion and desired saving. An appeal to available theory and evidence suggests that a properly designed central bank digital currency is not likely to threaten financial stability
Bank rate · Business · Central bank · Currency · Debt · Digital currency · Economics · Financial system · Market economy · Monetary economics · Monetary policy · Monopolistic competition · Monopoly · Banking stability, regulation, efficiency · Economic theories and models · Economic Theory and Policy · Finance
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Banking Crises Under a Central Bank Digital Currency (CBDC)
Monetary Policy Transmission, Central Bank Digital Currency, and Bank Market Power
Simulating the Adoption of a Retail CBDC
Individuals' attitudes and their adoption intentions of central bank digital currency
The Stackelberg duel between Central Bank Digital Currencies and private payment titans in China
The quest for CBDC
The political economy of institutionalizing Central Bank Digital Currencies
A literature review on the design and implementation of central bank digital currencies
Rethinking Central Bank Money
Central Bank Digital Currencies
Is CBDC undermining the Process of Money Creation
Contrasting Views on CBDCs
Monetary sovereignty in the digital age
Bank Market Power and Central Bank Digital Currency
Central Bank Digital Currency
| Citations per year | 4 |
|---|---|
| Citation span | 2022 - 2026 (5) |
| Highly cited | No |