made when a bank debits the account of the payer The costs are larger when cross-border payments also and credits the account of the receiver. [...] The costs tion is whether the general availability of an electronic of disruption are to be weighed against the goal of form of the central bank liabilities renders the run sce- improving competition in payment-related services. [...] To avoid the “crowding out” finality, the settlement is completed at the very effect on bank deposits, arbitrage trading and moment the payment is completed, and finality a rise in procyclicality, the use of the e-CNY is confirmation by the real-time gross settlement likely to be limited to small retail transactions system is no longer required. [...] The authors of this report and the G30 are grateful to the People’s Bank of China for contributing this box on the current state of play of China’s Central Bank Digital Currency project. [...] Governments have enormous greater efficiency and speed, and for lower costs, but influence over what gets used as currency, at least it also necessitates a more careful consideration of in large parts of the economy, and at the core of the the tradeoffs arising from the economics of data and financial system.
- Pages
- 48
- Published in
- United States of America
