The Digital Future of Central Bank Money

Abstract

Nowadays the vast majority of money is in digital form. Except for banknotes and coins. But that's changing now and some central banks are already offering digital currencies to the public, the so-called Central Bank Digital Currency (CBDC). A number of reasons can be given for the interest of central banks in CBDC. Some of them are directly related to monetary policy, others can be explained by the willingness of central banks to keep pace with private sector innovations in the field of payment services, especially the emergence of digital assets such as stablecoins. At the same time, there are differences in the disposition of central banks on two sides of the Atlantic towards the CBDC. In any case, the future of money is digital and physical cash will have a digital counterpart, including in Europe.