| |
| author |
Jacob KurtzFreilich
| | title |
Development of Central Bank Digital Currencies in Emerging Markets and Developing Economies
| | abstract |
The newest innovation in currency is Central Bank Digital Currencies. Central Bank
Digital Currencies present many intriguing opportunities and pitfalls for central banks of
Emerging Market and Developing Economies. Central banks need to be cautious when
designing a Central Bank Digital Currency because the design will greatly influence the benefits
and risks associated with the project. There will be significant consequences for the success of a
Central Bank Digital Currency due to the type of network used and the methods of identity
verification included in its design. Key motivations for the development of a Central Bank
Digital Currency are the creation of new monetary policies, the ability to implement targeted
subsidies, and increased financial inclusion. Motivations that should be particularly beneficial
for many Emerging Market and Developing economies is increased efficiency and reduced costs
of remittances and international transfers of a Central Bank Digital Currency. The potential
benefits of a Central Bank Digital Currency are substantial, but they come with significant risk as
well, such as structural bank disintermediation and systemic failure due to insufficient
technological infrastructure. If a central bank in an Emerging Market and Developing Economy
designs a Central Bank Digital Currency well and addresses major limitations for making one,
there will be substantial benefits to be gained from the endeavor.
| | school |
The College of Liberal Arts, Drew University
| | degree |
B.A. (2022)
|
| advisor |
Raphaele Chappe
|
| full text | JKurtzFreilich.pdf |
| |
