Interest in digital currencies, especially Bitcoin, has exploded over the past year. The cryptocurrency Bitcoin was created in 2009 by an anonymous entity operating under the pseudonym Satoshi Nakamoto. Using cryptographic primitives to create a digital currency is not particularly new – David Chaum proposed electronic cash nearly thirty years ago. What is different about Bitcoin is its success...

Bitcoin and other similar digital currencies on blockchains are not ideal means for payment, because their prices tend to go up in the long term (thus people are incentivized to hoard those currencies), and to fluctuate widely in the short term (thus people would want to avoid risks of losing values). The reason why those blockchain currencies based on proof of work are unstable may be found in...

Most countries now share an established model of providing money to the economy through a two-tiered structureModern Monetary systemtwo-tiered structure, which consists central bank and commercial banks. The future monetary system will necessarily be shaped by both public private initiatives, issue private-based two-layered digital currencies denominated sovereign currency units can promising o...

The revolutionary rise of digital financial innovations has heralded a new era in the operation banking system and central banks, which brought about transformation money. Central banks must respond to challenges profoundly affecting transforming system. have been exploring introduction bank currency (CBDC), order promote stability sustainable development, preserve competitiveness bolster effec...

This is a review paper on the exploratory research done by various central banks and international organisations CBDCs framework to be followed for implementing these so that monetary system of specific country remains unaffected. cryptocurrency in general as we know have become quite popular are talking point many scholars, economists investment analysts. While believe cryptocurrencies no intr...

Central Bank Digital Currencies (CBDCs) enable negative interest rates. A game is analyzed between a central bank (accounting for the government’s interest) and representative household choosing to consume, hold CBDC, or non-CBDC. The chooses rate when it realizes that willing pay holding CBDC. pays because of its Cobb Douglas preferences whereby values CBDC while simultaneously competitive non...

This paper reviews some recent developments in digital currency, focusing on platform-sponsored currencies such as Facebook Credits. In a model of platform management, we find that it will not likely be profitable for such currencies to expand to become fully convertible competitors to state-sponsored currencies. JEL Classification: D42, E4, L51 Bank Classification: bank notes, economic models,...