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CBDC System Design Principles

In: The Monetary Turning Point

Author

Listed:
  • Joseph Huber

Abstract

To what extent and how soon expectations for CBDC are met depends on the design principles for implementing CBDC. The chapter discusses the Top Ten of CBDC design principles, dealing, for example, with the provision of CBDC according to market demand; the convertibility of CBDC and other types of money; open or restricted access to CBDC and its quantitative availability; whether central-bank support and government guarantees for bank money can be reduced; or the channels by which CBDC is circulated. Moreover, a number of concerns about CBDC are addressed, for example, whether CBDC increases or decreases the likelihood of a run on bank money; what happens to the functioning of the monetary system when CBDC is increasingly substituted for bank money; or how banks deal with CBDC side by side with bank money, specifically how banks continue to finance their operations.

Suggested Citation

  • Joseph Huber, 2023. "CBDC System Design Principles," Springer Books, in: The Monetary Turning Point, chapter 0, pages 117-150, Springer.
  • Handle: RePEc:spr:sprchp:978-3-031-23957-1_7
    DOI: 10.1007/978-3-031-23957-1_7
    as

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