Motives Matter: Examining Potential Tension in Central Bank Digital Currency Designs

Abstract: As a new central bank liability, central bank digital currency (CBDC) has the potential to address various issues within current payments and financial systems. The motivation behind a CBDC will determine how it is designed; a CBDC designed to achieve one goal, such as broader financial inclusion, may have difficulty achieving other objectives.

Keywords: Central Bank Digital Currency; Digital currencies; Central banking; Payments; Financial inclusion;

JEL Classification: E58; G23; G21;

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Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Payments System Research Briefing

Pages: 4