Bank of Lithuania
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2019-12-10

No 29. Aistė Juškaitė, Sigitas Šiaudinis, Tomas Reichenbachas. CBDC – in a whirlpool of discussion

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The topic of central bank digital currency (henceforth - CBDC) has recently gained significant share of attention among policy makers and academics. A wide range of CBDC setups are discussed from the universally accessible central bank accounts or digital tokens to less extreme suggestions of only partly broadening central bank balance sheet access by providing CBDC to wholesale consumers or getting private sector to mediate in the process by providing synthetic CBDC.

This paper recalls the possible CBDC implementation types that are discussed in the current context; reviews some of the discussions among those researching the topic; gives a brief overview of the next-step initiatives taking place among central banks with a potential to lay ground for the practical CBDC implementation; and discusses the main policy implications from financial stability and monetary policy perspectives.

The views expressed are those of the author(s) and do not necessarily represent those of the Bank of Lithuania.

Tomas Reichenbachas, LBChain, Sigitas Šiaudinis, LBCoin, central bank digital currency (CBDC), Aistė Juškaitė