The Impact of Digitalisation on the Monetary System

15-11-2019

Against the backdrop of a trend towards a cashless society and the emergence of private electronic monies, the paper discusses properties of digital currencies and implications for currency competition, describes benefits and risks of digitalisation of money for the society, explains the concept and implications of a CBDC, and discusses implications of digital money for monetary policy. The upshot is that the trend towards digitalisation will probably continue, but has to be closely monitored and accompanied with an appropriate regulatory framework. This document was provided by Policy Department A at the request of the Economic and Monetary Affairs (ECON) Committee.

Against the backdrop of a trend towards a cashless society and the emergence of private electronic monies, the paper discusses properties of digital currencies and implications for currency competition, describes benefits and risks of digitalisation of money for the society, explains the concept and implications of a CBDC, and discusses implications of digital money for monetary policy. The upshot is that the trend towards digitalisation will probably continue, but has to be closely monitored and accompanied with an appropriate regulatory framework. This document was provided by Policy Department A at the request of the Economic and Monetary Affairs (ECON) Committee.

Išorės autorius

Salomon FIEDLER, Klaus-Jürgen GERN, Ulrich STOLZENBURG