The digitalisation of central bank money: China advances while Europe hesitates

Abstract

The number of digital currencies has increased significantly in recent years. So-called central bank digital currencies (CBDCs), created by central banks, are at the forefront of this development. Combining the advantages of an electronic means of payment - namely the speed and efficiency of transactions - with the stability and confidence that central banks enjoy, CBDCs will surely have a significant influence on the devel­op­ment of international payment systems in the coming years. Work on this topic has accelerated significantly in many parts of the world following the imposition of sanc­tions against Russia by the G7. The European Union (EU) and China are also engaged in planning and shaping their own CBDCs, but there are significant differences in the motivations, pace of progress and ambitions associated with these projects. (author's abstract)