Central Bank Digital Currency and Governance: Fit for Purpose?

CIGI Paper No. 250

April 19, 2021

As digital forms of payment become increasingly popular, especially during the COVID-19 pandemic, cash is no longer king. Central banks are turning their attention toward central bank digital currency (CBDC) to replace coins and bills and to provide other types of services through digital technology. CBDC can also facilitate cross-border transactions through the use of internationally accepted currencies such as the euro and the US dollar. This paper explores the many tailwinds and headwinds that will affect the implementation of a CBDC.

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About the Author

Pierre L. Siklos is a CIGI senior fellow who specializes in macroeconomics, with an emphasis on the study of inflation, central banks and financial markets.