Governance of Digitalization and Central Bank Digital Currency: Uncertainties, Balancing, and Learning

Abstract

Central bank digital currency (CBDC) is a digital version of fiat currency. The governance of CBDC faces uncertainties, many of which are attributable to complexities in technology and regulation. What are the uncertainties faced by digitalization in general, and in particular, CBDC? How might developing approaches like adaptive governance help actors to handle uncertainties? The article seeks to answer these questions and analyse how governance of CBDC and more broadly digitalization should address these uncertainties.

Keywords: digital currency, CBDC, digitalization, adaptive governance, stability, flexibility, learning, technology, regulation