Towards Optimal Technological Solutions for Central Bank Digital Currencies
Lambis Dionysopoulos, George M. Giaglis · 2022
Abstract In this chapter, we provide a historic overview of the origin and definitions of Central Bank Digital Currencies (CBDCs), by examining relevant research dating back to the 1990s. We find that digital versions of sovereign money accessible by the private sector were motivated by advancements and challenges emerging from the private sector itself. We present the factors that necessitate their issuance, and especially focus on financial stability, monetary policy, and the increased competition in payments leading to threats in financial and monetary sovereignty. Finally, we assess the appeal of the various technical options for CBDCs against what has emerged as their universally desirable features.