8. What is CBDC?
Bjerg (2017), “Designing New Money - The Policy Trilemma of Central Bank Digital Currency”,
Frederiksberg: Copenhagen Business School, CBS
• Cash: universally accessible,
issued by central bank, but not
electronic/digital
• Bank account money: universally
accessible and electronic/digital,
but not issued by central bank
• Reserves: issued by central bank
and electronic/digital, but not
universally accessible
9. Money flower
Source: BIS - Bank for International Settlements
• Retail vs. Wholesale
CBDC
• Programmable
money (a.k.a tokens)
12. • Public consultation on the Digital Euro (published April 2021)
• 8,000 replies, an all-time record for ECB public consultations
• The overwhelming majority of the responses came from citizens
• 460 were from businesses and professionals in the payments sector
• Privacy concerns
• Privacy was considered to be the most important feature of a
digital euro in about 43% of replies
• Other important characteristics
• Using digital euro for secure payments (18%)
• To be used throughout the entire euro area (12%)
• Without additional costs and offline (11%)
Towards The Digital Euro
13. • „Electronic payments are becoming increasingly popular, so a
digital euro would ensure that sovereign money – a public
good that central banks have been offering to citizens for
centuries – remains available in the digital era.”
Introductory remarks by Fabio Panetta, Member of the Executive
Board of the ECB, at the ECON Committee of the European
Parliament
Frankfurt am Main, 14 April 2021
https://www.ecb.europa.eu/press/key/date/2021/html/ecb.sp210414_1~e76b855b5c.en.html
Towards The Digital Euro
16. • Macroeconomic issues with respect to CBDC
• Interest rate
• Taxation
• Financial stability
• Others
• Regulations and legislations
Last but not least