[PDF] Digital currencies and CBDC impacts on least developed

What are digital currencies?

Specifically, they are a type of crypto-asset for which the value is pegged to the value of another asset, such as the U.S. dollar, gold, or algorithmic pricing based on circulation supply. Santiago Fernández de Lis, Central Bank Digital Currencies: Features, Options, Pros and Cons

Should the Fed issue a digital currency?

11 learning from other central banks.” 75 (see Appendix Item 2 That said, Treasury Secretary Mnuchin tempered expectations, stating in December 2019 that he and Federal Reserve Chairman Jerome Powell “see no need for the Fed to issue a digital currency.” 76 Design Choices for Central Bank Digital Currency

Are digital currencies subject to caps and accrued interest?

Finally, digital currencies can be subject to caps and/or accrue interest. Conventional forms of money New forms of money Cash Bank deposit s Master account balances Privately issued cryptocurre ncy Token- based CBDC Account- based CBDC Tokens or accounts T A A T T A Anonymity × Decentralized distribution

Does the economy have currency?

The economy we consider already has currency, both token (that is, cash) and account-based (reserves). The banking sector relies on retail and wholesale deposits; however, remunerated reserves at the central bank are held exclusively by the banking sector.