CENTRAL BANK DIGITAL CURRENCIES (CBDC) AND THEIR IMPACT ON MONETARY POLICY

Abstract

The work reveals the key areas of development of CBDC as a tool for modernizing financial infrastructure in the context of an accelerating digital revolution. In the context of the rapid evolution of the cryptocurrency market and the growing popularity of decentralized finance (DeFi), central banks are faced with the need to rethink their role in ensuring monetary sovereignty and financial stability. The methodological basis of the study includes a comparative analysis of six key CBDC pilot projects representing different regions and levels of economic development: the Chinese digital yuan (e-CNY), the Swedish e-krona, the digital euro project, the Nigerian eNaira, the Bahamian Sand Dollar, and the Russian digital ruble. Particular attention is paid to the institutional and technological aspects of their implementation, as well as to the analysis of the impact on monetary policy and the financial system as a whole. The study identifies two fundamentally different models for the implementation of CBDCs. The retail model, chosen by most countries (China, Sweden, the EU, Nigeria), is focused on end users and is designed to address the issues of financial inclusion, increasing the efficiency of payments and competition with private cryptocurrencies. The wholesale model, implemented in the Singaporean project Ubin and the Canadian Jasper, is designed to optimize interbank settlements and financial infrastructure. The Russian approach to the digital ruble is a unique hybrid model that combines the advantages of both types. The analysis of the impact of CBDC on monetary policy revealed a number of transformational effects: the emergence of new monetary regulation instruments, including the possibility of establishing differentiated interest rates and implementing the concept of «programmable money»; increased transparency of money circulation and new opportunities to combat the shadow economy; a change in the traditional two-tier banking system by establishing direct relations between the central bank and end users. Of particular practical importance are the findings on the potential risks of CBDC implementation, including: a threat to the stability of commercial banks due to a possible outflow of deposits; problems of ensuring the confidentiality of transactions; technological challenges associated with scaling systems and ensuring cybersecurity.