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Central bank digital currency: The new kid on the block?
Journal of Digital Banking,
6
(4),
359-365
(2022)
Abstract
The emergence of cryptocurrencies and stablecoins has prompted many central banks to study the issuance of digital central bank money. This raises the question of whether central banks should also use Blockchain technology. A notable challenge here is the scalability of Blockchain technology. Another challenge arises from the need to strike the right balance between know-your-customer requirements and privacy protection. Both problems are easier to solve without Blockchain. Blockchain, however, needs a means of payment. This paper therefore argues that central bank digital currency (CBDC) does not need Blockchain, but that Blockchain needs CBDC.
Keywords: Central bank digital currency; CBDC; Blockchain; stablecoins; privacy
The full article is available to subscribers to the journal.
Author's Biography
Thomas Moser is an Alternate Member of the Governing Board of the Swiss National Bank, which is the central bank of Switzerland. Before joining the Swiss National Bank, he was an Executive Director at the International Monetary Fund (IMF) in Washington, D.C., USA. Thomas Moser is also a member of the Managing Committee of the Swiss Institute of Banking and Finance at the University of St. Gallen, Switzerland, and Visiting Professor at the University of Lucerne, Switzerland. Thomas Moser holds master’s and doctoral degrees in Economics from the University of Zurich, Switzerland.
