Template-Type: ReDIF-Article 1.0

Author-Name: Jorg J. Dotsch
Author-Workplace-Name: Andrassy Universitat Budapest
Author-Email: joerg.doetsch@andrassyuni.hu
Author-Person:

Author-Name: Tamas Ginter
Author-Workplace-Name: Andrassy Universitat Budapest
Author-Email: tamas.ginter@andrassyuni.hu
Author-Person:

Title: Complementing Money Functions: Central Bank Digital Currencies and Currency Competition

Abstract: Central bank digital currencies (CBDCs) are currently one of the most vital issues
in monetary policy worldwide. While several aspects of the emergence of digital
currencies have been addressed in the respective literature, little focus has been
directed to one important underlying parameter: the new role of technology in
the digital age, which complements the traditional money functions and hence
may exert an effect on currency competition. In this paper, we first provide an
overview of money functions, currency competition and digital money. We then state
that with the emergence of CBDCs, technology has become a new and important
functional parameter born by the CBDC itself. We conclude that while technological
competition has arisen as a factor of currency competition, stability remains its
most decisive factor.

Classification-JEL: E42, E58, O33
Keywords: CBDC, digitalisation, currency competition
Pages: 50-75
Volume: 23
Issue: 1
Year: 2024
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-23-1-st2-dotsch-ginter.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:23:y:2024:i:1:p:50-75