International digital currencies and their impact on monetary policy: An exploration of implications and vulnerability

Arbeitspapier

The objective of this discussion paper is to explore the consequences for monetary policy from the establishment of an international digital currency modeled like Libra. For this purpose, a basic assessment of the behavior of economic agents is conducted and possible conflicts with monetary policy are analyzed. Furthermore, a simple approach is developed to estimate the nature and extent of vulnerability for 42 currencies. The results suggest that currencies from developing countries and from developed nations are vulnerable in different ways. In the end, a stronger convergence of central bank policies could result. Thus, the introduction of an international digital currency represents a turning point for monetary policy.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Hohenheim Discussion Papers in Business, Economics and Social Sciences ; No. 11-2019

Classification and Topics

• Classification: Wirtschaft ; Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems ; Monetary Policy ; Central Banks and Their Policies
• Subject: monetary policy ; digital currency ; blockchain ; effective lower bound

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Proettel, Thorsten
• Event: Veröffentlichung
• (who): Universität Hohenheim, Fakultät Wirtschafts- und Sozialwissenschaften
• (where): Stuttgart
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/206404
• URN: urn:nbn:de:bsz:100-opus-16730
• Last update: 10.03.2025, 11:44 AM CET