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Central Bank digital currencies: features, options, pros and cons

Author

Listed:
  • Santiago Fernández de Lis
  • Olga Gouveia

Abstract

The emergence of cryptocurrencies is opening the way to Central Bank Digital Currencies (CBDCs). This paper highlights the pros and cons of issuing CBDCs under four different variants: from the more modest proposals where risk and reward are both relatively small, to the most ambitious ones where the ambitious aspiration of ending banking crises.

Suggested Citation

  • Santiago Fernández de Lis & Olga Gouveia, 2019. "Central Bank digital currencies: features, options, pros and cons," Working Papers 19/04, BBVA Bank, Economic Research Department.
    • Handle: RePEc:bbv:wpaper:1904
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    File URL: https://www.bbvaresearch.com/wp-content/uploads/2019/03/WP_Central-bank-digital-currencies-ICO.pdf
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    References listed on IDEAS

    as
    1. Kumhof, Michael & Noone, Clare, 2018. "Central bank digital currencies - design principles and balance sheet implications," Bank of England working papers 725, Bank of England.
    2. Reinhart, C. M., 2012. "The return of financial repression," Financial Stability Review, Banque de France, issue 16, pages 37-48, April.
    3. Olga Gouveia & Enestor Dos Santos & Santiago Fernandez de Lis & Alejandro Neut & Javier Sebastian, 2017. "Central Bank Digital Currencies: assessing implementation possibilities and impacts," Working Papers 17/04, BBVA Bank, Economic Research Department.
    4. Barrdear, John & Kumhof, Michael, 2016. "The macroeconomics of central bank issued digital currencies," Bank of England working papers 605, Bank of England.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Ohik Kwon & Seungduck Lee & Jaevin Park, 2020. "Central Bank Digital Currency, Tax Evasion, Inflation Tax, and Central Bank Independence," Working Papers 2020-26, Economic Research Institute, Bank of Korea.

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    Keywords

    Working Paper ; Central Banks ; Financial regulation ; Digital Regulation ; Digital economy ; Global;
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