Central Bank Digital Currencies and payments: A review of domestic and international
Recent technological developments linked to secure messaging and traceability present
an opportunity to address certain challenges in international and domestic payment
systems. From an international perspective, foreign exchange markets remain costly
and relatively less efficient than domestic payment systems. From a domestic perspective,
the decline in the relative importance of cash in most economies reflects changes
in consumers’ preferences, which questions the future of money and payment infrastructure.
Against that background, private initiatives falling outside of current regulation,
such as stable coins and other virtual assets, are associated with several risks and
opportunities and have fueled the debate on the opportunities for central banks to
issue new form of digital public currency. This note reviews those different propositions
and examine their implication for the international and domestic payment systems.
Published on February 05, 2021
In series:OECD Economics Department Working Papersview more titles