Multi-Blockchain Model for Central Bank Digital Currency

Central Banks and the Future of Money

A Public Option for Bank Accounts (Or Central Banking for All)

Central bank digital currency: A systematic literature review using text mining approach

Regulating Central Bank Digital Currencies: Towards a Conceptual Framework

Between the worldwide digital currencies one can also pinpoint those of central banks being a part of the move towards a cashless society. Several worldwide central banks are already planning to issue them, while others are conducting studies on them. Literature of the topic is heavily increasing, including understanding central bank digital currencies (CBDCs), their risks, and central banks’ future position towards them. This paper analyzes Twitter data tagged with the “cbdc” hashtag and posted between January 2021 and January 2023, with the aim of highlighting the change regarding citizens’ perceptions towards central banks’ digital currencies. The authors extracted 124,946 positive, negative and neutral tweets from Twitter which they further analyzed by using a Python script, in the end highlighting different views on the potential benefits and drawbacks of CBDCs. The results show a growing debate and discussion around the use of CBDCs, with citizens expressing concerns about their potential consequences on civil liberties and financial control, while others highlight the benefits of CBDCs such as financial inclusion and tackling money laundering and terrorism. The paper enriches literature related to the study of consumer sentiment towards digital currencies, highlighting the significance of social media platforms for sharing opinions on emerging financial technologies. Central banks can use social media tools to shift citizens’ sentiments and perspectives, including on topics such as CBDCs, by publishing explainers, replying to comments on relevant topics, and increasing posts’ numbers, as they analyze whether and how CBDCs will be implemented. Research on consumer sentiment on this topic is useful as it can help central banks in adapting their strategies accordingly so that they can better achieve their objectives.

The emergence of Central Bank Digital Currencies (CBDCs) has provoked significant interest among policymakers, economists, and financial institutions worldwide. As digital transformation reshapes the global economy, CBDCs offer a potential pathway for central banks to modernize monetary systems, enhance financial inclusion, and improve payment efficiency. This article explores the feasibility of CBDCs becoming the primary form of money in a country, examining their potential benefits, challenges, and implications for financial stability, monetary policy, and economic sovereignty. Drawing on empirical research, including stability metrics such as Z-scores, the findings suggest that CBDCs can coexist with existing financial systems without causing significant disruption. However, their successful implementation requires robust technological infrastructure, adaptive regulatory frameworks, and widespread public trust. The discussion highlights opportunities for CBDCs to enhance financial inclusion, streamline cross-border payments, and provide central banks with innovative policy tools. At the same time, challenges such as cybersecurity risks, potential disintermediation of commercial banks, and privacy concerns must be carefully addressed. Policymakers must adopt tailored strategies to balance innovation with stability, ensuring that CBDCs serve as a secure, efficient, and inclusive monetary tool. This article concludes with recommendations for phased implementation, public-private collaboration, and global coordination to maximize the benefits of CBDCs while minimizing risks. By addressing these critical factors, CBDCs have the potential to revolutionize the financial landscape, offering a modern alternative to traditional cash and commercial bank deposits while supporting long-term economic resilience and growth.

This paper explores the impact of Central Bank Digital Currency (CBDC) volatility on the efficiency of monetary policy, focusing on its role in financial inclusion and investment. As the world increasingly embraces digital currencies, central banks are exploring the potential benefits and risks associated with CBDCs. Volatility in CBDCs may have significant implications for the effectiveness of monetary policy, potentially influencing inflation control, interest rates, and economic stability. Moreover, CBDCs' introduction could either enhance or hinder financial inclusion by providing new opportunities for unbanked populations or exacerbating existing disparities. The paper reviews existing literature on CBDCs, highlighting key findings on their volatility and its effects on policy formulation. Furthermore, it assesses how volatility may impact investment decisions, both in terms of risk perception and market behavior. By examining the intersection of monetary policy, financial inclusion, and investment, this paper aims to provide a comprehensive understanding of CBDCs' potential in shaping modern economies. It is critical for policymakers to consider the dynamic nature of CBDC volatility when designing strategies for effective financial inclusion and sustainable investment. The paper concludes by identifying gaps in the current literature and proposing future research directions to further explore CBDC's impact on global economic systems. Ultimately, this review underscores the importance of mitigating volatility to maximize CBDCs' benefits in fostering inclusive economic growth.

In recent years, private digital currency based on blockchainindustry has caused many doubts, such as privacy infringement, money laundering tools, consumer protection and financial stability. However, as digital currency has gradually become the important issue, the central banks of various countries have already started to study the central bank digital currency (CBDC). In this paper, firstly, the concept of private digital currency and its derivative issues are explained. Secondly, based on the two chains scheme of the blockchain, a CBDC system is established to facilitate supervision, which stores and accesses transaction information and verification information separately to balance the user privacy security and the convenience of supervision. Meanwhile, the consortium blockchain is settled to the public chain to protect the reliability of the data. Moreover, although some countries have started to develop CBDC, laws and regulations which regulate various aspects of it are still deficient. Therefore, in this paper, in addition to proposing a general outline of the legal system regulating the CBDC, it also illustrates separately the monetary rights and obligations of the central bank, merchant banks and the public, which will be helpful for the future legal construction.

The central bank digital currency (CBDC), which is a digital analogue of the national currency, issued and controlled by the central bank, is studied. It combines the advantages of traditional money and digital technologies, ensuring the speed, security and efficiency of financial transactions. It is determined that digital currency contributes to financial stability, reduces the costs of cash circulation and improves the availability of banking services for the population. It also helps to combat financial crimes, increases the transparency of transactions and can become an effective instrument of monetary policy. In addition, CBDC is able to compete with private digital currencies and improve international settlements. Its implementation is an important step in the development of a modern financial system, ensuring the stability and technological adaptation of the economy. The main economic, technological, political and social factors influencing the development of CBDC are considered. It is determined that CBDC is a powerful tool, but its implementation is associated with risks for financial stability, privacy, the banking sector and cybersecurity. To minimize these risks, states must ensure a balance between technological capabilities and citizens' rights. The concept of creating an e-hryvnia is substantiated, determined on the basis of world experience and the peculiarities of the financial market infrastructure of Ukraine.

This research paper aims to serve as an added value to enrich the literature regarding the Central Banks Digital Currency and all its possible implications impacting the financial system. Our focus is on analysing CBDC from different perspectives, by analysing the motivations and concerns that lead countries with different economic conditions to introduce for their public this innovation as well as, to analyse the implications it poses due to significant fields of banking sector at whole, in terms of commercial banks, monetary policy of central bank or all the spikes that may happen in financial stability. The imminent allocation of crypto currencies has been the catalyst which has prompted Central Banks of various countries in Europe and beyond, to launch complex studies focusing on the implementation of macroeconomic policies in the context of digital currency issued by Central Banks. In prima facie overview, this process will be accompanied by various challenges, ascertained these challenges in the economic field but also in the legal one. This research paper, inter alia, aims to analyse the legal regulatory framework at the level of the European Union, taking into account the potential implications, material and procedural difficulties as well as, the economic effects that may derive from the issuance of digital currency issued by Central Banks. Along with analysation of EU legal framework in this research paper shall be analysed also the perspective of the Republic of Albania, as a candidate country for membership in the European Union which has the obligation to harmonize legislation with the aquis communiter.

Now, with all the acuteness, the question has arisen about what types of money can replace cash and non-cash money that are issued by central and commercial banks. The central place in the new system may be occupied by the CBDC, or “Central Bank Digital Currency”. The People’s Bank of China, which uses the formation of an almost entirely “cashless” economy as the basis for the transition to digital currency, was the first major central bank to test-run the issue of the CBDC. That forced central banks of leading developed countries, primarily the United States, to speed up the implementation of their own digital currencies, but as of the end of 2020, they have not yet come to a final opinion on how, within the framework of the chosen architecture of the CBDC, to achieve an accurate balance of sometimes conflicting goals

We build models with an interest-bearing central bank digital currency (CBDC) to investigate whether the interest-bearing CBDC can lead to financial disintermediation. In the benchmark model with only CBDC, entrepreneurs can deposit their idle CBDC and banks can hold CBDC to satisfy the reserve requirement. CBDC and bank deposits become complements. A higher CBDC interest rate always promotes investment and may or may not reduce bank lending, because the higher return on CBDC encourages entrepreneurs to accumulate more CBDC and deposit more. More deposits could in turn lead to more bank lending. The interest rate on reserves and the reserve requirement ratio can be effective policy tools that affect bank lending and investment. We consider extensions where cash and interest-bearing CBDC can coexist. The coexistence may require the central bank to adjust the CBDC interest rate or the interest rate on reserves. Our results suggest that the relationship between CBDC and bank deposits are crucial for understanding the effects of CBDC on banking and the macroeconomy.

The current era of digitalization has made everything digital, including currency. Other countries' currencies have implemented a Central Bank Digital Currency (CBDC) or an official digital currency issued by a central bank, such as El Salvador, Bahamas, China and Nigeria. The background to this research is that until now, there has been no precise legal regulation for using this digital currency in implementing CBDC use in Indonesia, even though the digital currency has been implemented in several countries, as mentioned above. This research uses qualitative research methods by implementing the use of CBDC in Indonesia and examining relevant legislation using it. The next stage uses comparative techniques with several countries, namely Bahamas, China, and Nigeria. The results of this research found that CBDC in Indonesia still needs to have legal regulations or laws that clearly regulate the implementation of CBDC. Rules regarding this use Law Number 7 of 2011 concerning Currency. However, the issuance of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK) opens up opportunities for the issuance of CBDC. Apart from that, Bank Indonesia also launched a project called White Paper "Garuda Project". According to the project, CBDC will be issued in 2025, which increases the chances of CBDC being issued in Indonesia.

A Central Bank Digital Currency (CBDC) can offer several benefits for governments and citizens such as faster transactions at a lower cost, and richer information on consumers’ behaviour. It is important however that the consumer’s perspective on the adoption of CBDCs is not neglected. A CBDC needs consumers to trust and use it, to avoid either a complete failure, or a partial failure. A partial failure may lead to CBDCs being one of two parallel systems’ consumers use. This research uses a survey analysed by structural equation modelling to identify the six ways to build trust in a CBDC so it can be successfully adopted and used extensively: (1) Trust must be built in the government and the central bank issuing a CBDC, (2) expressed guarantees for the user of a CBDC must be provided, (3) the positive reputation of existing CBDCs active elsewhere must be utilized, (4) the automation and reduced human involvement achieved by a CBDC technology can be helpful, (5) specific trust building functionality of a CBDC can be utilized, and (6) specific privacy features of the CBDC wallet app and back-end processes such as anonymity can be beneficial.

Central bank digital currencies (CBDCs) are increasingly becoming a subject matter for a variety of stakeholders in the economy as a whole. In this paper, we will first analyse the nature of CBDCs to show that it is essentially a digital liability of central banks, like today’s settlement balances that banks use in their own transactions. Such a ‘wholesale’ CBDC may exist along a ‘retail’ CBDC, which is the digital version of banknotes that, to date, any non-bank agents can use for their small-value payments. In this perspective, CBDCs are therefore ‘much ado about nothing’, as they just represent the most recent evolution of the form of money. However, in this paper we will also show that such an evolution could have some relevant consequences for monetary policy objectives like financial stability and banks’ solvency if ‘retail’ CBDCs replace banknotes in advanced economies, thereby providing an interesting alternative to bank deposits — particularly if these CBDCs are going to be remunerated by the issuing central banks. The last section will expand on this issue, focusing on the possible reaction of the banking sector, whose aim is and will remain the maximization of banks’ profits over the short run.