PREREQUISITES AND IMPLEMENTATION OF THE DIGITAL CURRENCY
PREREQUISITES AND IMPLEMENTATION OF THE DIGITAL CURRENCY

Summary/Abstract: The author provides an overview of the current literature on CBDCs, covering microeconomic considerations such as operational structures, technology, and privacy, as well as macroeconomic implications such as financial stability and monetary policy. Despite progress, some issues remain unresolved, particularly with respect to the cross-border implications of CBDCs, and further research is needed to advance the understanding of this topic. The author conducted simulations using various scenarios and assumptions related to the usage and adoption of CBDC to gain a better understanding of its potential impact. In the first scenario, the author assumed that the public fully adopts CBDC and it replaces all bank deposits. In the second scenario, the author assumed that CBDC is only adopted by some of the public while cash and bank deposits remain in use. In the third scenario, the author assumed that cash remains the preferred method of payment and CBDC adoption is restricted. The author created a comprehensive simulation scenario that utilized regression analysis, where CBDC is extensively adopted and constitutes 50% of all transactions within the economy.

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