FACTORS FOR INTRODUCING DIGITAL CURRENCIES BY CENTRAL BANKS AND THEIR ADVANTAGES

Author(s): Gorbacheva T.A.

Rubric: Economy

DOI: 10.21777/2587-554X-2024-1-27-35

Release: 2024-1 (48)

Pages: 27-35

Keywords: digital currencies of the central bank, digital money, distributed ledger technologies, blockchain, cross-border payments, digital payments, wholesale DCCB, retail DCCB, crypto asset, monetary policy

Annotation: The central bank’s digital currencies can become an effective payment policy tool, helping to eliminate market dis- ruptions and stimulating competition and innovation in new digital payment markets. In this regard, the topic of this work is undoubtedly relevant. The article is devoted to the study of the factors of central banks for the development and implementation of digital currency initiatives of the central bank (DCCB), as well as their advantages. The article first examines the concept and main forms of implementation of digital currencies of the central bank. The article examines the general-purpose digital currencies of the central bank, which can technically be implemented in two formats: in the form of deposit accounts with the central bank for all households, corporations and digital tokenized currencies based on distributed ledger technology. It is revealed that among the arguments of the monetary authorities in favor of currencies, the following motives can be distinguished: global competition, duopolistic or oligopolistic market structure, dominance of foreign payment providers, reduction of cash in circulation. In addition, the main advantage of the DCCB is precisely the increase in the competitiveness of payments and their efficiency.

Bibliography: Gorbacheva T.A. FACTORS FOR INTRODUCING DIGITAL CURRENCIES BY CENTRAL BANKS AND THEIR ADVANTAGES // Economics and Management. – 2024. – № 1 (48). – С. 27-35. doi: 10.21777/2587-554X-2024-1-27-35