Central bank digital currencies

Antonis Ballis*, Thanos Verousis

*Corresponding author for this work

Research output: Chapter in Book/Published conference outputChapter

Abstract

The advent of Central Bank Digital Currencies (CBDCs) represents a transformative milestone in modern banking, capturing the attention of policymakers, financial institutions, and academics alike. This chapter provides a comprehensive overview of the expanding body of literature on CBDCs. It delves into the critical aspects that define their significance and potential challenges within the banking sector. The primary objective of this chapter is to dissect the foundational elements crucial for the success of CBDC initiatives. It also aims to uncover how CBDCs have the potential to reshape the dynamics of monetary policy transmission and influence the stability of the banking sector, necessitating a delicate balance. Moreover, as the narrative progresses, the focus shifts to the potential of CBDCs to enhance financial inclusion and their role in optimising payment systems. CBDCs are examined for their capacity to ignite financial innovation through integration with the existing infrastructure and the creation of novel financial products. Lastly, this chapter sheds light on the intricate legal and regulatory framework surrounding CBDCs. This framework encompasses both national and international coordination, cybersecurity concerns, and data privacy. Additionally, it discusses the imperative need for the transformation of commercial banking models driven by CBDCs, which, in turn, requires the adaptation of business strategies to remain competitive.

Original languageEnglish
Title of host publicationAdvances in Blockchain Research and Cryptocurrency Behaviour
PublisherWalter De Gruyter
Pages137-156
Number of pages19
ISBN (Electronic)9783110981551
ISBN (Print)9783110995596
DOIs
Publication statusPublished - 3 Sept 2024

Bibliographical note

Publisher Copyright:
© 2024 Walter de Gruyter GmbH, Berlin/Boston. All rights reserved.

Keywords

  • CBDC
  • Central bank digital currencies
  • Financial stability
  • Monetary policy

Fingerprint

Dive into the research topics of 'Central bank digital currencies'. Together they form a unique fingerprint.

Cite this