Central Bank Digital Currencies: A Framework for Assessing Why and How

31 Pages Posted: 29 Jun 2017

See all articles by Ben S. C. Fung

Ben S. C. Fung

Bank of Canada

Hanna Halaburda

New York University (NYU) - Leonard N. Stern School of Business

Date Written: November 28, 2016

Abstract

Digital currencies have attracted strong interest in recent years and have the potential to become widely adopted for use in making payments. Public authorities and central banks around the world are closely monitoring developments in digital currencies and studying their implications for the economy, the financial system and central banks. One key policy question for public authorities such as a central bank is whether or not to issue its own digital currency that can be used by the general public to make payments. There are several public policy arguments for a central-bank-issued digital currency. This paper proposes a framework for assessing why a central bank should consider issuing a digital currency and how to implement it to improve the efficiency of the retail payment system.

Keywords: Digital currency

JEL Classification: E41, E42

Suggested Citation

Fung, Ben Siu Cheong and Halaburda, Hanna, Central Bank Digital Currencies: A Framework for Assessing Why and How (November 28, 2016). Available at SSRN: https://ssrn.com/abstract=2994052 or http://dx.doi.org/10.2139/ssrn.2994052

Ben Siu Cheong Fung (Contact Author)

Bank of Canada ( email )

234 Wellington Street
Ottawa, Ontario K1A 0G9
Canada
613-782-7686 (Phone)
613-782-7764 (Fax)

Hanna Halaburda

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
New York, NY NY 10012
United States

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