From Bitcoin to Central Bank Digital Currencies: Making Sense of the Digital Money Revolution

We analyze the path from cryptocurrencies to official Central Bank Digital Currencies (CBDCs), shed some light on ultimate dematerialization of money. To that end, we made an extensive search resulted in a review more than 100 academic and grey literature references, including positions central banks. present discuss characteristics different CBDC variants being considered—namely, wholesale, retail, and, for latter, account-based, token-based—as well as ongoing pilots, scenarios interoperability, open issues. Our contribution enables decision-makers society at large understand potential advantages risks introducing CBDCs, how these vary according many technical economic design choices. The practical implication is debate becomes possible about trade-offs stakeholders are willing accept.