Implications of central bank digital currency for financial stability

Highlights. •. The adoption of CBDC contributes to financial stability. •. A CBDC helps to reduce leverage and portfolio and asset risks. •. Adoption of a CBDC ...

Central bank digital currencies: financial stability implications

A significant shift from bank deposits into CBDCs. (or even into certain new forms of privately issued digital money) could have implications for lending and ...

Implications of Central Bank Digital Currency for Monetary Operations

This Fintech Note aims to analyze how the issuance of central bank digital currency (CBDC) could affect monetary operations.

Financial Stability Implications of CBDC - Federal Reserve Board

A Central Bank Digital Currency (CBDC) is a form of digital money that is denominated in the national unit of account and constitutes a direct ...

Central Bank Digital Currencies and Financial Stability: Balance ...

Our analysis of policy choices to control these effects considers macroprudential policy, and an expansion of central bank lending to commercial ...

Central Bank Digital Currency and financial stability

This indirect. ECB Working Paper Series No 2783. 2. Page 4. effect renders the bank more stable. The total effect of CBDC remuneration on bank fragility thus ...

Retail CBDC: Implications for Banking and Financial Stability

This article reviews the literature examining how the introduction of a retail central bank digital currency (CBDC) would affect a modern ...

The Fed - Retail Central Bank Digital Currencies: Implications for ...

A CBDC has the potential to improve welfare by reducing financial frictions, countering market power in deposit markets and enhancing the ...

How would a Central Bank Digital Currency Affect Financial Stability?

A well-designed central bank digital currency may enhance rather than weaken financial stability, according to an OFR working paper released ...

The impact of central bank digital currency on central bank ...

... central bank's balance sheet, with potential implications for the economy and financial stability. Therefore, all central banks that have ...

Central Bank Digital Currency and the Monetary Policy and ...

The chapter analyzes the implication of central bank digital currency (CBDC) issuance for financial stability and monetary policy.

Central bank digital currencies and financial stability in a modern ...

The introduction of an interest-bearing CBDC has direct implications for the sight deposit rate and the loan rate of banks. Besides, if the central bank aims to ...

Central bank digital currencies: motives, economic implications and ...

Financial stability concerns are also an important driver of research and development work – particularly in the light of the threat that private alternatives ...

Central Bank Digital Currency and Financial Stability - IDEAS/RePEc

We examine the implications of central bank digital currency (CBDC) for financial stability using a monetary general equilibrium model.

01. Central bank digital currencies and financial stability

Most Central Banks in the world are currently considering - or at least studying - the launch of a Central Bank Digital Currency (CBDC).

Central Bank Digital Currency: Stability and Information

2 Despite its clear importance, there has been relatively little formal analysis of this issue, and the effect of a CBDC on financial stability ...

Central Bank Digital Currency and Financial Stability

Echoing widespread concerns, higher CBDC remuneration raises bank fragility by increasing consumers' withdrawal incentives. On the other hand, ...

Central Bank Digital Currency, Credit Supply, and Financial Stability

We examine the implications of central bank digital currency (CBDC) for credit supply and financial stability using a monetary general equilibrium model.

Central Bank Digital Currencies: Motives, Economic Implications ...

However, CBDCs should be considered in the full context of the digital economy and the centrality of data, which raises concerns around competition, payment ...

Monetary policy and financial stability implications of central bank ...

Central banks around the world are exploring the possibility of issuing retail central bank digital currencies. This column takes stock of ...