Central Bank Digital Currencies: Some Links

Economists at the Richmond Fed (Romero, Wang & Wong) have been thinking about them (as have many others):

Physical currency in circulation is a liability of the central bank. So most simply, central bank digital currency is central bank liability issued in electronic form. In a sense, the Federal Reserve already offers a digital currency in the form of electronic central bank deposits, also known as reserves. One might think of these reserves as wholesale CBDC since access to them is limited to qualifying financial intuitions. For retail payments, central banks have avoided dealing directly with the general public, relying instead on tiered arrangements in which commercial banks provide direct retail payment activities and services. At present, the only direct connection between the public and the central bank are the Federal Reserve Notes (paper money) people carry in their wallets. However, new technological advances, such as distributed ledger technology and mobile computing, have made it possible, on the one hand, for private parties to develop payments systems that bypass central banks and, on the other hand, for central banks to provide new forms of retail payments that bypass intermediaries.

This article was an excellent way to quickly catch up on the issues I quite frankly haven’t kept up with. Other articles of interest:

Joint report by The Bank of Canada, European Central Bank, Bank of Japan, Sveriges Riksbank, Swiss National Bank, Bank of England, Board of Governors of the Federal Reserve and Bank for International Settlements.: https://www.bis.org/publ/othp33.htm

A survey by Auer, Cornelli & Frost: https://www.econstor.eu/handle/10419/229473

And a recent guest post on Econbrowser.

2 thoughts on “Central Bank Digital Currencies: Some Links

  1. pgl

    File this story either under April Fools or do not believe the headline. The headline is that 12 of the most notorious tax havens will rat out how multinationals are diverting massive amount of corporate profits to their no tax zones:

    https://mnetax.com/tax-havens-commence-sharing-tax-information-about-entities-that-hold-ip-other-mobile-income-43229

    That would be great but read the fine print which says that if the multinationals have any value added activities in the tax haven, no disclosure.

    So have two of your marketing people move to the Barbados and your dirty little secrets on how you are gaming the system with blatant transfer pricing abuse will stay under wraps.

    Reply
    1. Moses Herzog

      A lot of this is “old News” that U.S. politicians have happily “looked the other way” on for decades now. They have no plans on stopping it, ending it, or punishing it. And NEVER will or they would have done so by now. Although some Yalies on this same blog have attacked JohnH in prior threads for having the horrid audacity to point out that fact. No doubt you think the large tax-dodgers deserve a congressional medal or honorary membership into the Bush’s Skull and Bones Society. Here is a recent story on one of these. “Only” a billion dollars. Why bug them though when you can go after grandma jones??
      https://www.nytimes.com/2021/04/01/business/bristol-myers-taxes-irs.html

      Hopefully Bristol Myers contributed to Andrew Cuomo’s campaign funds, then pgl can give them his “they’re our DNC lovable bastards” seal of approval.

      Reply

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