Embracing Technology as a Driver for Economic surges.A Case Study for Central Bank Digital Currencies

Abstract

The amount of research and development that central banks have put into creating central bank digital currencies (CBDCs) has increased dramatically in the last few years. These initiatives are supported by an expanding corpus of economic research, most of which focuses on the "reserves for all" feature of CBDCs intended for retail use. However, given the importance of data and the digital economy, CBDCs should be viewed in a larger context. An overview of the growing corpus of research on CBDCs is given in this study, which covers the microeconomics issues related to operational designs, technologies, and privacy in addition to the many implications for the financial system, financial stability, and monetary policy. Further work to expand the study frontier is necessary to address unresolved problems, particularly with regard to the cross-border elements of CBDCs.