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“Economically inefficient and legally untenable”: constitutional limitations on the introduction of central bank digital currencies in the EU

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  • Jay Cullen

    (University of York
    University of Oslo)

Abstract

ECB officials have recently poured scorn on the notion that the ECB could introduce a central bank digital currency (CBDC) in the Eurozone, with one labelling such an initiative as “economically inefficient and legally untenable.” This article assesses the justifications for these claims from legal and economic perspectives. It finds that, based upon prevailing ECB policies and the myriad options available for CBDC design, such claims are flawed. The article further explains that the ECB’s reticence to consider the introduction of CBDC may impair the development of payments systems and obstruct financial inclusion.

Suggested Citation

  • Jay Cullen, 2022. "“Economically inefficient and legally untenable”: constitutional limitations on the introduction of central bank digital currencies in the EU," Journal of Banking Regulation, Palgrave Macmillan, vol. 23(1), pages 31-41, March.
    • Handle: RePEc:pal:jbkreg:v:23:y:2022:i:1:d:10.1057_s41261-021-00162-4
    DOI: 10.1057/s41261-021-00162-4
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    References listed on IDEAS

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    Cited by:

    1. Zhang, Ying & Gong, Bing & Zhou, Peng, 2024. "Centralized Use of Decentralized Technology: Tokenization of Currencies and Assets," Cardiff Economics Working Papers E2024/14, Cardiff University, Cardiff Business School, Economics Section.
    2. Bhaskar, Ratikant & Hunjra, Ahmed Imran & Bansal, Shashank & Pandey, Dharen Kumar, 2022. "Central Bank Digital Currencies: Agendas for future research," Research in International Business and Finance, Elsevier, vol. 62(C).

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