<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Computerization of social life enabled market participants to search for new forms of electronic payments. The share of cash in total payments is systematically decreasing, which poses the risk of being supplanted by other instruments, including cryptocurrencies. Central banks, therefore, faced the challenge of adjusting their issuing activities to the current social and market conditions, which resulted in the emergence of the concept and discussion of the introduction of digital cash. The purpose of this paper is to examine the abovementioned issues and indication of potential scenarios for the introduction of central bank digital currency with an indication of potential consequences for the banking sector. The thesis of this paper is the following statement: The emergence of digital money of the central bank may significantly change the nature of commercial banks’ activities - including potentially eliminating their role in issuing cashless money.</p>
</abstract>

Computerization of social life enabled market participants to search for new forms of electronic payments. The share of cash in total payments is systematically decreasing, which poses the risk of being supplanted by other instruments, including cryptocurrencies. Central banks, therefore, faced the challenge of adjusting their issuing activities to the current social and market conditions, which resulted in the emergence of the concept and discussion of the introduction of digital cash. The purpose of this paper is to examine the abovementioned issues and indication of potential scenarios for the introduction of central bank digital currency with an indication of potential consequences for the banking sector. The thesis of this paper is the following statement: The emergence of digital money of the central bank may significantly change the nature of commercial banks’ activities - including potentially eliminating their role in issuing cashless money.

Central Bank Digital Currency: Scenarios of Implementation and Potential Consequences for Monetary System

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution 4.0 International License.

Computerization of social life enabled market participants to search for new forms of electronic payments. The share of cash in total payments is...

Central Bank Digital Currency: Scenarios of Implementation and Potential Consequences for Monetary System

Published Online: Sep 23, 2022

Page range: 137 - 154

Received: Apr 14, 2021

Accepted: Sep 09, 2021

DOI: https://doi.org/10.2478/jcbtp-2022-0027

Keywords
Central banking, commodity money, cash, central bank digital currency, deposits, checks, cryptocurrencies

© 2022 Patryk Kaczmarek, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Central Bank Digital Currency: Scenarios of Implementation and Potential Consequences for Monetary System

Published Online: Sep 23, 2022

Page range: 137 - 154

Received: Apr 14, 2021

Accepted: Sep 09, 2021

DOI: https://doi.org/10.2478/jcbtp-2022-0027

KeywordsCentral banking, commodity money, cash, central bank digital currency, deposits, checks, cryptocurrencies

© 2022 Patryk Kaczmarek, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Central banking, commodity money, cash, central bank digital currency, deposits, checks, cryptocurrencies