Central Bank digital currencies are a challenge to the international monetary and financial system. Since development of cryptocurrency, such as bitcoin, modern world has faced possibility technological transformation providing form payment for economy household. In addition, announcement currency that would have global reach, Libre issued by social network Facebook, raised questions about lega...

In recent work (Gopinath and Stein 2017), we explore how a currency like the dollar can become entrenched as a dominant global currency, focusing on the two-way feedback between trade invoicing and banking structure. The basic idea is that when a larger share of a country’s imports are invoiced in dollars, its citizens have a greater demand for dollar-denominated safe claims. This in turn leads...