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About Central Bank Digital Currencies (CBDCs).

Authors :
Francis, Jack Clark
Source :
Review of Pacific Basin Financial Markets & Policies; Dec2023, Vol. 26 Issue 4, p1-11, 11p
Publication Year :
2023

Abstract

A Central Bank Digital Currency (CBDC) is a country's fiat currency that exists in a digital form. This digital currency becomes a liability on the balance sheet of a nation's central bank when it ceases to be a liability on the balance sheet of one of the nation's commercial banks and gets transferred to the central bank. Instead of printing paper money, the central bank can create CBDCs by opening electronic bank accounts at commercial banks that are backed by the full faith and credit of the nation's central bank. The goal of a CBDC is to provide the nation's government, businesses and consumers with a liquid and accessible currency that supplies privacy, transferability, convenience, and financial security. If CBDCs become highly popular, someday the world might operate with only one global CBDC. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
02190915
Volume :
26
Issue :
4
Database :
Complementary Index
Journal :
Review of Pacific Basin Financial Markets & Policies
Publication Type :
Academic Journal
Accession number :
174622350
Full Text :
https://doi.org/10.1142/S0219091523500285