National Repository of Grey Literature 2 records found  Search took 0.00 seconds. 
Federal Reserve System's attitude to CBDC
Slabý, Jiří ; Fiřtová, Magdalena (advisor) ; Hornát, Jan (referee)
Using Content Analysis, this Master's thesis aims to answer the question of why the Federal Reserve System is delaying the introduction of a central bank digital currency (CBDC). This new financial instrument responds to the technological innovations of recent years in the field of currencies - cryptocurrencies. With declining numbers of people using central bank money, namely cash, the CBDC efforts to reverse this trend. This thesis offers a comparison of various means of payment so that the reader understands exactly how CBDC differs from them. With the help of examples of already established digital currencies or their pilot projects, it shows possible paths for the United States as well. The support of the executive branch, Congress, and especially the American public is needed for the introduction of CBDC in the United States. The President's backing is evidenced, for example, by his Executive Order No. 14067. Finding support in Congress is much more difficult for the Fed since its composition changes every two years. With the Republican Party currently on top in the House of Representatives, it will be more difficult to push the President's agenda. Additionally, Republican Congressmen typically introduce bills against additional Fed powers. A public survey on the introduction of CBDC has not...
European Central Bank Digital Currencies: Lessons from Central Bank Experiments and Scenario Analysis
Pramod Kumar, Kumar Chandrakamal ; Dědek, Oldřich (advisor) ; Havránek, Tomáš (referee) ; Ramesh, Sangaralingam (referee)
The dramatic increase in popularity of cryptocurrencies like Bitcoin has motivated central banks to research central bank digital currencies (CBDC). The key central bank R-CBDC experiments are reviewed. It is found that central banks of advanced economies like the Federal Reserve, European Central Bank and Swiss National Bank are relatively less motivated to issue R-CBDC. This is because current retail payment systems and settlements are already fast and efficient and the advantages of R-CBDC may not be as large as initially expected. Financial inclusion and need for traceable payment systems is less attractive in advanced economies and central banks would lose credibility if CBDC were implemented unsuccessfully. A scenario analysis is used to explore the implications of R-CBDC on financial stability and monetary policy. The results show that CBDC implementation in all scenarios is expected to positively impact financial stability and monetary policy. Results from the scenario analysis are more optimistic than the literature and urges central banks to continue their research. Finally, it is found that ECB's ability to issue CBDC is uncertain. The risks to traditional monetary policy tools and banking system should encourage both to become more efficient and focus on the needs of users.

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