Digital Money and Central Banks Balance Sheet.
Por Adrián Armas ; Singh, Manmohan
December 2023
Idioma: Spanish
Keywords
- bank deposits
- central bank balance sheet
- central bank digital currenty
- currency
- digital currency
- money base (M0)
- seigniorage
Clasificación JEL:
- E41
- E5
- F30
- G15
Resumen:
Digital money is a logical step in a process of continuous technological advancement in payment systems. In response, central banks are reviewing their conduct of monetary operations in light of the new shape of financial markets and systems. The impact of digital money will depend on the type of money substitution by digital money. The paper straddles several cases where substitution of CiC (currency in circulation), and bank deposits may take place via digital money such as CBDC or other e-money, and how it would impact the central bank balance sheet. Remuneration of CBDC, if aligned to anew objective, could potentially amplify the effect on the interest rate channel of monetary policy.