A Study on Central Bank Digital Currencies

Abstract

ABSTRACT The introduction of digital money such as Bitcoin, and the underlying blockchain and distributed ledger technology, created huge interest. The developments have posed the possibility of major implications for the financial system and potentially the whole economy. This article tackles the topic of a central bank ought to issue digital money for widespread use. Defines a benchmark central bank digital currency with characteristics like cash.The implications of such a digital currency are analyzed, with particular attention to central bank title, monetary policy, the banking system, financial stability, and payment. This Study delivers a CBDC that is considerably different from the accepted digital currency is assessed. However, their successful incorporation requires careful consideration of a multitude of issues, not to mention rewarding and balancing risks, to establish firm foundations that minimize these risks and take advantage of CBDCs’ potential to drive a more equal and efficient financial system.