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Macro and Micro Implications of the Introduction of Central Bank Digital Currencies: An Overview

Author

Listed:
  • Gérard Mondello

    (Université Côte d'Azur, France
    GREDEG CNRS)

  • Elena Sinelnikova

    (Center for the Study of Central Banks, Institute for Applied Economic Studies, RANEPA)

  • Pavel Trunin

    (Macroeconomics and Finance Division, Division Head Gaidar Institute for Economic Policy, Moscow)

Abstract

After the emergence and widespread of cryptocurrencies central banks are studying how their own digital currencies may help and favor the monetary policy implementation. There are many challenges to this process both in legal and economic (financial, monetary) areas. The paper studies the potential movement from a two-tier banking system (central bank and banks) to a one-tier banking system in case of CBDCs emission, including the issues of competition and commercial banking profitability. More specific question is the change of the transmission of monetary policy with CBDC emission.

Suggested Citation

  • Gérard Mondello & Elena Sinelnikova & Pavel Trunin, 2020. "Macro and Micro Implications of the Introduction of Central Bank Digital Currencies: An Overview," GREDEG Working Papers 2020-02, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France, revised Mar 2020.
    • Handle: RePEc:gre:wpaper:2020-02
    as

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    File URL: http://195.220.190.85/GREDEG-WP-2020-02.pdf
    File Function: Revised version, 2020-03
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    CBDC; digital currency; cryptocurrency; monetary policy;
    All these keywords.

    JEL classification:

    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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