The Digital Transformation and the Monetary Challenges in the Post-Crisis Period
The Digital Transformation and the Monetary Challenges in the Post-Crisis Period

Author(s): Jovan Zafiroski
Subject(s): Politics / Political Sciences, Politics, Economy, Supranational / Global Economy, Business Economy / Management, Economic policy, Financial Markets, ICT Information and Communications Technologies, Geopolitics
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: CBDCs; digitalization; monetary sovereignty; legal tender; surveillance; weaponization; programmability
Summary/Abstract: Digitalization of money is one of the most important challenges for the monetary authorities which alongside inflation and geopolitical turbulences has potential for profound changes of the traditional monetary landscape. The launch of the CBDCs a as new form of public money should strengthen monetary sovereignty in times of increased digitalization of the economy. However, the process of introduction of the central bank digital money raises numerous legal questions that should be answered before its launch. Also, the economic effects will be significant especially for the financial system and the payment infrastructure. Moreover, the introduction of the CBDCs might have serious consequences for the society as a whole. In broader terms the risks are related to the possible abuse of the digital money for surveillance, more options for weaponization of money, and manipulation of programmability of money.

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