engleski

Sovereign digital currencies: Central Banking of the future or echoes from the past?

This paper analyzes a specific type of monetary developments instigated by the digitization of the EU payment environment over the last decade –sovereign digital currencies. Namely, the combination of fast-paced technological advancements and regulatory responses lagging behind, have resulted with a noticeable increase in privately issued digital monies. Free-riding on similarities with innovative money formats (such as e-money), privately issued digital currencies compete with digital payment solutions in retail transactions. The competition is taking place in an increasingly cashless payment environment, in which de facto digital monies constitute the majority of the broad money aggregate. In this respect, the idea of sovereign digital currencies –labeled as “central bank digital currency” (CBDC) appears as an intriguing proposal. With this in mind, this paper gives further insight on the public debate on the promises that privately issued digital currencies hold for the future of central banking and the financial system overall

central banking, sovereign digital currencies, payments

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