Capital Flow Management Measures in the Digital Age (2) Design Choices for Central Bank Digital Currency
This fintech note looks at how capital flow measures (CFMs) could be implemented with central bank digital currency (CBDC), and what benefits, risks and complexities could arise. There are several implications of the analysis. First, CBDC ecosystems should generally be designed such that they can ac...
| Main Author: | |
|---|---|
| Other Authors: | , , |
| Format: | eBook |
| Language: | English |
| Published: |
Washington, D.C.
International Monetary Fund
2023
|
| Series: | Fintech Notes
|
| Subjects: | |
| Online Access: | |
| Collection: | International Monetary Fund - Collection details see MPG.ReNa |
| Summary: | This fintech note looks at how capital flow measures (CFMs) could be implemented with central bank digital currency (CBDC), and what benefits, risks and complexities could arise. There are several implications of the analysis. First, CBDC ecosystems should generally be designed such that they can accommodate the introduction of CFMs. Second, thanks to the programmability of the payment infrastructure given by the new digital technologies, certain CFMs could likely be implemented more efficiently and effectively with CBDC compared to the traditional system. Third, implementing CFMs requires central banks to collaborate on practices and standards. Finally, CFMs on CBDC need to operate alongside traditional CFMs |
|---|---|
| Physical Description: | 37 pages |
| ISBN: | 9798400252105 |