Abstract
A central bank digital currency ( CBDC) is electronic in nature and one which amounts to the currency of the country implementing it. The value of a CBDC is the same as the physical form, i.e. a £10 CBDC would equate to a £10 bank note. It is not classed as a cryptocurrency, which is a form of digital currency, however, the Bank of England has said that it may use the distributed ledger technology ( DLT) which is utilised for cryptocurrency. Central banks are researching into the benefits and implications of a CBDC, such as making payments more resilient and faster, and adapting to the digital economy. Cynically, it appears that central banks are concerned by the potential of cryptocurrencies becoming mainstream and making central banks redundant. This article will explore the following: what is a CBDC, why is it being explored now and the future of money and payment services.Citation
Barnes, M. (2021) Central bank digital currency: What is it and why now? Journal of International Banking Law and Regulation, 36(9), pp. 390-394.Publisher
Thomson ReutersJournal
Journal of International Banking Law and RegulationType
Journal articleLanguage
enDescription
This is an accepted manuscript of an article published by Sweet & Maxwell in Journal of International Banking Law & Regulation, available online on Westlaw UK. The accepted version of the publication may differ from the final published version.Collections
Except where otherwise noted, this item's license is described as https://creativecommons.org/licenses/by-nc/4.0/