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ACADEMY
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MANAGEMENT
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№ 10/2020

№ 10/2020

Fìnansi Ukr. 2020 (10): 64–80
https://doi.org/10.33763/finukr2020.10.064

MONETARY POLICY

LYUBICH Oleksandr 1, BORTNIKOV Gennadiy 2

1SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-9339-4242
2SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0001-8388-6721


Digital currency of central banks and monetary policy


The purpose of the study is to determine the potential impact of the introduction of central bank digital currencies (CBDC) on monetary policy. In this publication, we focus on two aspects: the need to save cash in circulation and the potential danger of private digital money for monetary policy. The CBDC is paid increasing attention from central bank researchers and independent experts. The reasons are compose such preconditions as innovations in payment instruments, blockchains, cryptography, globalization for response to the growth of demand in transactions using digital currencies with expected increase in their impact on monetary stability. One of the potential threats to an effective monetary policy is the emergence of private digital money and the risk of failing to choose a right CBDC business model. The development of private digital currencies can significantly reduce income of central banks from seigniorage, weaken the influence of central banks on financial stability and sustainability of monetary policy. Cashless payments, unlike cash, store information about the sender and recipient, size, date and destination. This information is already a commodity that sellers of financial products and suppliers of goods and services from the real sector are willing to pay for. Cash allows to make payments with greater benefits for the population, taking into account the reliability, comfort and confidentiality. In our opinion, ‘social distancing’ encourages contacts between people through the media channels, with dissemination of knowledge among the general public about digitalisation and convince indiviuals to agree on disclosure of personal data. Central banks are called upon to further develop the money supply management mechanism, to ensure the coexistence of non-cash and cash in their jurisdictions.

Keywords:digital currency, central bank, monetary policy, cash circulation

JEL: E49, E5


Lyubich O. . Digital currency of central banks and monetary policy / O. . Lyubich, G. . Bortnikov // Фінанси України. - 2020. - № 10. - C. 64-80.

Article original in Ukrainian (pp. 64 - 80) DownloadDownloads :222
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