Central bank digital currencies: An old tale with a new chapter

Arbeitspapier

We consider the debut of a new monetary instrument, central bank digital currencies (CBDCs). Drawing on examples from monetary history, we argue that a successful monetary transformation must combine microeconomic efficiency with macroeconomic credibility. A paradoxical feature of these transformations is that success in the micro dimension can encourage macro failure. Overcoming this paradox may require politically uncomfortable compromises. We propose that such compromises will be necessary for the success of CBDCs.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2022-18

Classification and Topics

• Classification: Wirtschaft ; Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems ; Central Banks and Their Policies ; Economic History: Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations: General, International, or Comparative
• Subject: monetary systems ; banknotes ; central banks ; digital currencies

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bordo, Michael D. ; Roberds, William
• Event: Veröffentlichung
• (who): Federal Reserve Bank of Atlanta
• (where): Atlanta, GA
• (when): 2022

Further information

• DOI: doi:10.29338/wp2022-18
• Handle: http://hdl.handle.net/10419/279455
• Last update: 10.03.2025, 11:44 AM CET