Retail CBDC would extend central bank balance sheets – ECB paper
Frequent fine-tuning of monetary policy operations could become the norm
A retail central bank digital currency (rCBDC) would require higher commercial bank reserves, additional liquidity from central banks, or more monetary policy operations, a new paper from the European Central Bank (ECB) has found.
The authors – Enea Caccia, Jens Tapking and Thomas Vlassopoulos – argue that a rCBDC would not necessarily reduce commercial bank deposits. In a positive interest rate environment, demand for an unremunerated CBDC would result in higher commercial bank deposits, they
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com