Book Title: Central Bank Digital Currencies (CBDCs): Proceedings of a Colloquium

Publisher: EIZ Publishing

Abstract: Central Bank Digital Currencies (CBDCs) stand as one of the most compelling topics of interest for central banks globally. Virtually all central banks are delving into the potential benefits presented by CBDCs, with some embarking on feasibility assessments for introducing a digital rendition of their currency within their respective jurisdictions. China’s pilot programme notably stands as one of the most advanced trials of its kind. Consequently, a substantial volume of discourse has emerged surrounding CBDCs, encompassing their rationales for introduction, the dichotomy between centralised and decentralised technological frameworks as potential foundations, the roles that private intermediaries might play in CBDC distribution and management, and the benefits or ramifications they could bring to financial markets and societies. As reiterated throughout the chapter, the Eurozone needs a comprehensive dialogue regarding the necessity of such holding caps. The existing literature does not arrive at definitive conclusions as to the indirect consequences associated with unrestricted access to CBDC, thereby lacking unequivocal support for the ECB’s cautious stance. This underscores the need for deeper insights before central banks make decisions on this crucial policy facet. Finally, we delve into how the presence of (unlimited) CBDC could potentially facilitate the attainment of monetary policy objectives for the Eurosystem.