100% E-Money and its Implications for Central Bank Digital Currency

8 Pages Posted: 28 Jun 2019

Date Written: June 26, 2019


Many publications on Central Bank Digital Currency (CBDC) point out the possibility of granting the public access to CBDC through non-bank third-parties instead of letting the central bank interact directly with the public. However, little attention has been paid to the relationship between these approaches and 100% e-money, which is already issued in El Salvador and is legally possible in a few more countries. Therefore, this paper wants to investigate this relationship by comparing 100% e-money with two models, where CBDC is provided by third-parties which are known from the literature as the custodian and the intermediary model. The findings indicate that the intermediary model and 100% e-money display strong similarities, which has implications for CBDC research. So, research on third-party CBDC could be more goal-driven and give better policy implications. In addition, this research shows regulatory requirements on third-party CBDC and future research areas on 100% e-money.

Keywords: central bank digital currencies, electronic money, regulation

JEL Classification: E42, E58

Suggested Citation

Hess, Simon, 100% E-Money and its Implications for Central Bank Digital Currency (June 26, 2019). Available at SSRN: https://ssrn.com/abstract=3410242 or http://dx.doi.org/10.2139/ssrn.3410242

Simon Hess (Contact Author)



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