Designing central bank digital currencies

understanding Platform-Based Digital Currencies

ƒ This article focuses on digital currencies issued by Internet platforms such as Facebook and Amazon. Depending on the platform’s business model, its digital currency may be equipped with different attributes that affect how users can acquire, transfer or redeem the digital currency. In most cases, platforms restrict the functionality of their digital currencies to enhance the business model a...

The promise and perils of digital currencies

Interest in digital currencies, especially Bitcoin, has exploded over the past year. The cryptocurrency Bitcoin was created in 2009 by an anonymous entity operating under the pseudonym Satoshi Nakamoto. Using cryptographic primitives to create a digital currency is not particularly new – David Chaum proposed electronic cash nearly thirty years ago. What is different about Bitcoin is its success...

Central Bank Independence and Central Bank Conservatism: Theory with an Application to Iran

New monetary literatures widely concentrates on the importance of institutional arrangements in the effectiveness of monetary policy. The debate regarding the optimal institutional design of central banks, independence and conservatism are usually considered to be the most important ingredients for a stable and successful monetary policy. Therefore, the purpose of this study is to deal with the...

Central Bank Haircut Policy

The paper develops a model to study the optimal choice of the central bank haircut policy. In the presence of uncertainties regrading liquidity needs and asset prices, there is a trade-off between providing liquidity to constrained agents and controlling the abundance of liquidity in the economy. The choice of the haircut involves balancing impacts on the liquidity positions of agents with diff...

Central bank power