The Impact of the Issuance of Central Bank Digital Currency on the Effectiveness of Monetary Policy

DOI

10.2991/aebmr.k.201128.007How to use a DOI?

Keywords

Central bank digital currency, monetary policy, zero lower bound, quantitative easing, IS-LM analysis

Abstract

Facebook’s efforts to launch its Libra cryptocurrency elicited heated debates over who will control money in the future, major economies have started to examine how central bank digital currencies could become reality. In this paper, clear boundaries between central bank digital currency and cryptocurrency are clarified, including the value and the purposes of issuing different currencies. Figuring out the pros and cons raised from different characteristics of them will be found out. CBDCs also exert tremendous influences on the monetary policy, both positively and negatively, like the issuance of CBDC will maintain the independence of central banks and solve the liquidity issues to resolve the problems on quantitative easing. Moreover, the expansion of issuance of CBDC is taken into consideration, inspecting the transition of CBDC through cost-benefit analysis; as a result, agreement on the issuance of CBDC will be concluded to show the positive side of CBDC.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yuqing Wu
PY  - 2020
DA  - 2020/11/30
TI  - The Impact of the Issuance of Central Bank Digital Currency on the Effectiveness of Monetary Policy
BT  - Proceedings of the 2020 2nd International Conference on Economic Management and Cultural Industry (ICEMCI 2020)
PB  - Atlantis Press
SP  - 35
EP  - 39
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201128.007
DO  - 10.2991/aebmr.k.201128.007
ID  - Wu2020
ER  -