The Positive Case for a CBDC

Staff Discussion Paper 2021-11 (English)
Andrew Usher, Edona Reshidi, Francisco Rivadeneyra, Scott Hendry
July 2021
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We discuss the competition and innovation arguments for issuing a central bank digital currency (CBDC). A CBDC could be an effective competition policy tool for payments. A CBDC could also support the vibrancy of the digital economy. It could help solve market failures and foster competition and innovation in new digital payments markets.
Content Type(s): Staff research, Staff discussion papers
Topic(s): Digital currencies and fintech, Financial institutions, Financial stability
JEL Code(s): E, E4, E42, E5, E58, L, L4, L5

DOI: https://doi.org/10.34989/sdp-2021-11