A History of Central Bank Digital Currency and the Money Monopoly
Franklin Noll · 2023
Although central bank digital currencies may appear to be a recent innovation, their history can actually be traced back several decades, and even further depending on one&s;s perspective. Discussions about them have raised a number of concerns over the years, such as their impact on monetary policy, seigniorage, the possibility of disintermediation within the banking industry, legal tender laws, and remuneration. However, the central issue underlying these discussions is often left unsaid, as it is widely acknowledged that central banks and governments hold a monopoly over currency. Furthermore, the historical challenges to this monopoly are what link today&s;s central bank digital currencies to past developments in central banking.