scholarly journals Assessing the Impact of Central Bank Digital Currency on Private Banks

2018 ◽  
Vol 2018 (025) ◽  
Author(s):  
David Andolfatto
Keyword(s):  
Central Bank ◽  
Digital Currency ◽  
Private Banks ◽  
The Impact

scholarly journals Assessing the Impact of Central Bank Digital Currency on Private Banks

2020 ◽  
Author(s):  
David Andolfatto
Keyword(s):  
Central Bank ◽  
Financial Stability ◽  
Banking Sector ◽  
Detrimental Effect ◽  
Bank Lending ◽  
Deposit Rate ◽  
Digital Currency ◽  
Private Banks ◽  
Lending Activity ◽  
The Impact

Abstract This paper investigates how a central bank digital currency can be expected to impact a monopolistic banking sector. The paper’s framework of analysis combines the Diamond (1965) model of government debt with the Klein (1971) and Monti (1972) model of a monopoly bank. The paper finds that the introduction of a central bank digital currency has no detrimental effect on bank lending activity and may, in some circumstances, even serve to promote it. Competitive pressure leads to a higher monopoly deposit rate which reduces profit but expands deposit funding through greater financial inclusion and desired saving. An appeal to available theory and evidence suggests that a properly designed central bank digital currency is not likely to threaten financial stability.

Central bank digital currency: the future of institutional changes in the banking sector

2021 ◽  
Vol 2021 (2) ◽  
pp. 26-48
Author(s):  
Volodymyr MISHCHENKO ◽  
◽  
Svitlana NAUMENKOVA ◽  
Svitlana MISHCHENKO ◽  
◽  
...  
Keyword(s):  
Central Bank ◽  
Financial Stability ◽  
Banking Sector ◽  
Central Banks ◽  
Credit System ◽  
Bank Supervision ◽  
Bank Of China ◽  
Digital Currency ◽  
Financial Monitoring ◽  
The Impact

The purpose of the article is to reveal the essence and features of the introduction of digital currency of central banks and their impact on the conditions of monetary policy, financial stability, as well as institutional transformations in the development of national banking systems. The study is based on an analysis of projects of issuance and use of digital currencies of the ECB and central banks of leading countries, as well as the results of pilot projects of the National Bank of China on the use of the digital yuan and NBU on the e-hryvnia circulation. It is proved that digital currency of the central bank should be considered as a new dematerialized form of national currency in addition to cash and non-cash forms. Particular attention is paid to the study of the impact of the use of digital currency by central banks on the main parameters of economic policy. The main directions of potential influence of digital currency use on transformation of mechanisms of realization of monetary, budgetary and tax, macroprudential policy, maintenance of financial stability, activization of action of channels of the monetary transmission mechanism, and also on reforming of system of the state financial monitoring and bank supervision are substantiated. It is determined that one of the consequences of the use of digital currency will be the ability to ensure full control over all monetary transactions, which will help reduce the shadow economy and corruption. Structural and logical schemes of centralized and decentralized models of issuance and circulation of digital currency of central bank have been developed, directions of changes in the structure and functions of commercial and central banks, as well as in the structure of the financial and credit system in general have been substantiated.

Digital Ruble As an Element of the Digitalization of the Economy

2021 ◽  
pp. 22-28
Author(s):  
E. Myasnikova ◽  
L. Voskresenskaya
Keyword(s):  
Comparative Analysis ◽  
Central Bank ◽  
Commercial Banks ◽  
Central Banks ◽  
Digital Currency ◽  
Expert Assessments ◽  
Potential Risks ◽  
Excessive Load ◽  
Model C ◽  
The Impact

The article is devoted to the discussion of the prospect of issuing in Russia the digital currency of the Central Bank - the digital ruble. The properties and characteristics of the digital ruble, models of the functioning of the digital currency are considered. The place of the Central Bank in the process of functioning of the platform for the production of digital rudders shown. The main stages of development and implementation of the digital ruble are presented. Expert assessments of the possibilities and consequences of the introduction of the digital ruble are discussed. The impact of the digital ruble of the Central Bank on the financial system and the potential risks of introducing a digital currency are assessed. A comparative analysis of technologies for creating a digital ruble platform been carried out. The strategies of the central banks of various countries in creating models and mechanisms for issuing digital currencies into circulation are considered. Conclusions are made about the prospects for the introduction of the digital ruble in Russia. It noted that the problem of choosing the organization of the circulation of digital currency remains unresolved. Model C creates an excessive load of settlements on the Central Bank; Model D distributes the settlement load among commercial banks, which greatly increases the risks of clients – legal entities and individuals.

scholarly journals The Research on the Money Supply of Central Bank Digital Currency

2018 ◽  
Vol 2 (2) ◽  
pp. 27
Author(s):  
Yuxuan Chen ◽  
Kejie Zhou ◽  
Wenhao Yang
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Money Supply ◽  
Third Party ◽  
Digital Currency ◽  
The World ◽  
The Impact ◽  
The Imf

Currently, the only central bank digital currencies (CBDC) in the world is Venezuela’s currency—Petro. Nowadays, the IMF, BIS, and major countries have conducted a lot of research on CBDC. It’s an urgent issue for the central bank to issue CBDC, determine and formulate the circulation of CBDC and the issuance speed, and supervise it. Therefore, establishing ARMA and VARs by sorting out literature, the paper uses the characteristics of CBDC--cash, and similarities with third-party payment in terms of payment to determine the circulation of CDBC by third-party payment users and currency in circulation. The model calculates and predicts the speed of circulation of digital currency. The issuance of CBDC will accelerate the circulation of money. In this regard, we will explore the impact of money supply on monetary policy and make relevant recommendations.

scholarly journals The impact of using the digital currency in monetary policy

2019 ◽  
Vol 5 (1) ◽  
pp. 72
Author(s):  
Shorsh Qadir Ali
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Analytical Method ◽  
The Other ◽  
The Internet ◽  
Digital Currency ◽  
Economic Balance ◽  
The One ◽  
The Impact ◽  
Goals And Objectives

It is known that the digital currency is not supported by any official entity and is used by the Internet only within the scope of institutions, companies and individuals that prefer to deal with them, and can be exchanged in paper currencies such as dollars, euros and others .The purpose of this research is to explain the impact of digital currencies in monetary policy, beginning with the concept of digital currency and its origin and types, on the one hand, and then explain the monetary policy and its goals and objectives used to achieve economic balance in any country on the other hand , The research adopted a descriptive analytical method to determine the effect of the digital currency in monetary policy. The research reached a number of conclusions, the most important of which is that the digital currency affects the tools and objectives of monetary policy negatively and that the digital currency affects the function of the central bank in controlling and directing credit because digital currencies are difficult to control Or direct them .  

scholarly journals Central bank Digital Currencies: Key Aspects and Impact on the Financial system

2021 ◽  
Vol 25 (5) ◽  
pp. 133-149
Author(s):  
D. M. Sakharov
Keyword(s):  
Central Bank ◽  
Interest Rates ◽  
Financial Stability ◽  
Method Comparison ◽  
Financial System ◽  
Digital Currency ◽  
Methods Of Synthesis ◽  
Logical Method ◽  
Key Aspects ◽  
The Impact

This research discusses various issues associated with central bank digital currency that is identified as a new form of money. This paper aims to identify the key prerequisites for the issuance of central bank digital currencies, to discuss the key characteristics of central bank digital currencies and analyze the possible impact of central bank digital currencies on the financial system. The author uses the methods of synthesis, analysis, logical method, comparison, induction, deduction. The research highlights the key principles that should be considered when making decisions on the issuance of central bank digital currency. The paper emphasizes that the issuance of central bank digital currency can be successful if it has competitive advantages over existing forms of fiat money. The research identifies the main characteristics of central bank digital currencies. The paper discusses whether central banks should pay interest on fiat digital currencies. The author notes that the impact of central bank digital currencies on the financial system is expected to vary in different periods of time depending on the phase of the economic cycle and the level of interest rates in the economy. The research shows that central bank digital currency will stimulate the digitalization of the financial system while at the same time it will not create additional risks to financial stability. Introducing central bank digital currency is primarily aimed at promoting the efficient payment system. Further research is needed into mechanisms for the technical implementation of digital currency issuance, taking into account the possible risks associated with introducing fiat digital money.

scholarly journals A Scientometric Review of Digital Currency and Electronic Payment Research: A Network Perspective

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-17 ◽  
Author(s):  
Qing Shi ◽  
Xiaoqi Sun
Keyword(s):  
Central Bank ◽  
Asset Allocation ◽  
Investor Sentiment ◽  
Research Area ◽  
Knowledge Bases ◽  
Future Research ◽  
Electronic Payment ◽  
Digital Currency ◽  
Monetary System ◽  
The Impact

The potential implications of digital currencies and electronic payment (DC/EP) have become a hot global research area. To present the knowledge bases and research fronts of this field, we apply a scientometric approach to analyze 454 publications obtained from the Web of Science core collection. Results show that, first, the knowledge bases can be classified into three main topics: (1) the usage and diversification effect of private digital currencies from the point of investment and asset allocation; (2) the price dynamics and market efficiency of private digital currencies; and (3) other economic roles of digital currencies and corresponding change brought into the monetary system. Second, several research trends can be inferred using sliding window analysis and burst detection, namely, how the introduction of digital currencies changes consumers’ choice in payment instrument and their money demand; how social media and investor sentiment affect the market of digital currencies; and the impact of digital currencies on the central bank, monetary policy, and central bank digital currency. Third, core scholars and countries involved in the research of DC/EP are identified, and it is found that collaboration has been rising especially among European scholars and countries. With these systematic analyses, we offer recommendations for scholars and practitioners in future research of DC/EP.

مخاطـر السيولـة المصرفيـة وتأثيـرهـا في الاستقرار المـالـي في العـراق للمدة2019-2005

2021 ◽  
Vol 2021 (71) ◽  
pp. 200-222
Author(s):  
ضحى ذياب احمد ◽  
أ.د صبحي حسون حسون
Keyword(s):  
Central Bank ◽  
Financial Stability ◽  
Supply And Demand ◽  
Banking System ◽  
Risk Indicators ◽  
Investment Activity ◽  
Non Profit ◽  
Balance Sheets ◽  
Private Banks ◽  
The Impact

The banking system is one of the key elements of building the economy and enhancing the financial stability of the country, and this importance comes from the role of banks operating in it as depository institutions and intermediaries between supply and demand units, in addition to modern banking services and payment systems that increase the efficiency and effectiveness of economic activity. Therefore, we find that liquidity risk indicators are important indicators that reflect the activity of banks, which at the same time may reflect a misleading picture of the positions of banks in terms of the strength of their balance sheets and the extent to which they adhere and adhere to the standards and instructions issued by the Central Bank, and thus bank liquidity is the basis of the work of banks and is considered the backbone of them, but depends on the work of banks, which reflects their impact on the financial stability situation. This importance led us to choose the subject of the study where the study aimed to determine the impact of bank liquidity risks on financial stability, this study was conducted on the Iraqi banking system and for the period 2019-2005, and the descriptive analytical approach was adopted based on data and information about government and private banks and taken from the official bodies represented by the Central Bank of Iraq. The research at the end of the study found a set of conclusions, including that both government and private banks suffer from limited credit and investment activity, causing a rise in liquidity ratios and liquid assets, which of course means the accumulation of non-profit liquid funds, which greatly affects their financial stability and exposes them to different risks that ultimately affect the stability of the financial system and this proves the validity of the study hypothesis

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