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Central Bank Digital Currency (CBDC) pledges to realize a vast array of new functionalities, such as frictionless consumer payment and money-transfer systems, as well as precise supervision of money circulation, thereby enabling a number of new financial instruments and monetary policy levers. This study proposes, from a system feedback loop and cybernetics perspective, a Dynamic Issuance Mechanism (DIM) for CBDC that can theoretically enhance the vitality of economic operations. In accordance with this mechanism, the central bank implements dynamic issuance by monitoring cash leakage in real-time, so as to maintain the stability of the amount of money circulating on the market, thereby boosting the currency turnover rate and financial vitality. To demonstrate the efficacy of the DIM, we employ the Agent-Based Modeling (ABM) tool to develop a macroeconomic simulation model for qualitative analysis that includes four entities: Central Bank, households, firms, and commercial banks. The multi-cycle operation process of the model includes a variety of economic indicators demonstrating that DIM has the potential to boost economic vitality and social production efficiency without exerting an adverse effect on citizens' incomes, commodity prices, or the stability of the macroeconomic system. Finally, the function principle and potential risks of DIM are explained from a systems perspective, which offers a novel perspective for the functional design of CBDC and highlights that the hierarchical structure is a meaningful domain as the developmental direction. [ABSTRACT FROM AUTHOR]

Central Bank Digital Currency (CBDC) pledges to realize a vast array of new functionalities, such as frictionless consumer payment and money-transfer systems, as well as precise supervision of money circulation, thereby enabling a number of new financial instruments and monetary policy levers. This study proposes, from a system feedback loop and cybernetics perspective, a Dynamic Issuance Mechanism (DIM) for CBDC that can theoretically enhance the vitality of economic operations. In accordance with this mechanism, the central bank implements dynamic issuance by monitoring cash leakage in real-time, so as to maintain the stability of the amount of money circulating on the market, thereby boosting the currency turnover rate and financial vitality. To demonstrate the efficacy of the DIM, we employ the Agent-Based Modeling (ABM) tool to develop a macroeconomic simulation model for qualitative analysis that includes four entities: Central Bank, households, firms, and commercial banks. The multi-cycle operation process of the model includes a variety of economic indicators demonstrating that DIM has the potential to boost economic vitality and social production efficiency without exerting an adverse effect on citizens' incomes, commodity prices, or the stability of the macroeconomic system. Finally, the function principle and potential risks of DIM are explained from a systems perspective, which offers a novel perspective for the functional design of CBDC and highlights that the hierarchical structure is a meaningful domain as the developmental direction. [ABSTRACT FROM AUTHOR]

This study aims to solve the credit problems in the supply chain commodity and currency circulation links from the perspective of the ledger, while the game model method has been adopted. The research firstly reviews the relationship between distributed ledger technology and the essential functions of currency. Then, by constructing two-agent single-period and multi-period game models in the entire supply chain, the researchers analysed the incentive mechanism and equilibrium solution of distributed nodes of Central Bank Digital Currency (CBDC). The results of this study include the incentive mechanism and optimization of distributed nodes based on licensed distributed ledger technology, which is an important issue that CBDC faces when performing currency functions. The implications of this study mainly cover the limitations of the underlying technology of the public chain and its reward mechanism in the supply chain management and provide support for the rationality of the CBDC issuance mechanism based on state-owned commercial banks, which provides a reference for the CBDC practice. The main value of the research not only serves the decision-making department of the CBDC issuance but also provides ideas on the operation mode of digital currency for the field of digital currency research. [ABSTRACT FROM AUTHOR]