The central bank digital currency dimension in global financial integration

Date

23/5/2024

Authors

Georgios Chortareas, Eleftheria Kostika, Theodore Pelagidis

Type

Book

Journal

Handbook of Financial Integration

Publication

This chapter discusses some key considerations of central bank digital currency (CBDC) design to identify the potential benefits and risks of the CBDC issuance for global financial integration. First, it provides an overview of all CBDC design choices under investigation and development. Since the efficiency and integration of payment systems, the strengthening of financial stability and the adoption of a more flexible monetary policy are essential for greater financial integration, payment infrastructure and monetary policy issues from the issuance of a CBDC on the financial stability are examined. Finally, the chapter discusses the prerequisites for the CBDC to be the convergence point for digital global financial integration.