Цифрові валюти центральних банків: досвід пілотних проєктів та висновки для НБУ

An overview of the definitions of central bank digital currency (CBDC), formulated by researchers of the International Monetary Fund (IMF), the Bank for International Settlements (BIS), the Bank of England, is presented, and the essence of the CBDC is revealed. It is stated that the existing electronic money is a digital form of obligations of financial intermediaries, and CBDC is a form of emission and obligations of central banks. The types and forms of CBDC are generalized, namely: retail or wholesale, account-based or token-based ones. The structure and functionality of the register, payment authentication, access to infrastructure, and governance are defined as factors taken into account during CBDC designing. Similar models of launching national CBDC by the Bank of England (economy-wide access or financial institutions access, and financial institutions plus CBDC backed narrow bank access) and BIS (direct, indirect, hybrid) are under consideration. The synthetic CBDCs are marked as a theoretical concept of CBDC. The overview of projects of the People's Bank of China – "e-renminbi", the Central Bank of the Uruguay – "e-peso", the Central Bank of the Bahamas – "sand dollar" and the Eastern Caribbean Central Bank affirm the interest of developing countries in launching national retail CBDCs. It was found that apart from the Riksbank with the successful "e-krona" project, most of the monetary authorities of developed countries (BIS, Bank of Japan, Bank of Canada, Deutsche Bank, FRS) are just planning or starting to experiment with the issuance of digital securities, which demonstrates their concern about the restructuring of the banking system and the changes of global role of traditional currencies. Among the positive consequences of the introduction of CBDC for the domestic banking system are the emergence of an alternative payment instrument, the implementation of effective monetary policy through increased influence on interest rates, and regulation of the legal regime of crypto currencies. At the same time, the introduction of CBDC involves certain changes in financial intermediation (replacement of the deposits of commercial banks with the CBDC, the performance of functions inherent to commercial banks by the central bank or fintech companies), and will require powerful technical capabilities, including those related to protection from cyber risks. The results of the study point to the need for a cautious approach to the implementation of the Ukrainian CBDC only after the NBU assesses the public demand for new forms of money and the impact of the launch of CBDC models on price and financial stability, and compares available payment technologies that can achieve the same goals as the CBDC.

The article is devoted to the study of prospects for digital currency issue by central banks as a new form of central bank money and to the potential of their influence on monetary and credit system. The aim of the article is to interpret and classify central bank digital currencies, to identify key characteristics of digital currencies and possible models of their issue, as well as to define the main directions of influence of digital currencies on the monetary and credit and payment systems. The scientific novelty of the article is in the systematization and comparison of different ideas about the implementation of sovereign digital currencies considering the use of distributed registry technologies. The study analyzed the projects of central banks on the issue of digital currencies and identified their features. Possible directions of influence of central bank digital currencies on the monetary and credit policy of the Central Bank and the activities of credit institutions were determined. It revealed that central bank digital currencies can be considered as a new form of money of the Central Bank, which can be issued to be used both in retail and in wholesale payments. Digital currencies may differ in some characteristics. The key ones are: a way to integrate into the monetary and credit system; emission technology; currency storage method; mechanism of mutual settlements and anonymity level. The study showed that the main incentives for introducing digital currencies are the possibility to provide an alternative and universally accessible legal means of payment, as well as to provide faster, more transparent and cheaper in-country and cross-border payments. The influence of digital currencies on the monetary and credit system and the monetary and credit policy of the Central Bank will largely depend on the scenario of their system integration. If cash is simply replaced in circulation by digital currencies, the effect on the Central Bank monetary and credit system and policy will not be significant. However, if central bank digital currencies are issued as an addition to cash, or are in parallel circulation, they can strengthen the transmission mechanism of the monetary and credit policy and increase the centralization of assets on the Central Bank balance sheet, as well as reduce the funding provided by credit institutions.

Asset-backed securities (ABS), 147 Asset-backed tokenization, 153 Asset-backed tokens (ABTs), 6, 146, 150-154 background, 148-150 benefits of tokenization, 154-155 capital requirements, 171-172 case studies, 156-161 challenges, 155-156 consultation outcomes, 173-176 general principles, 168-171 regulatory issues, 168-176 risks of permissionless DLTS and smart contracts, 161-168 Asset-pricing relationships comparison of cryptocurrency and equity market factors, 100-103 cryptocurrency pricing by equity and crypto factors, 104-108 cryptocurrency pricing by global and regional factors, 108-109 data, 98-100 Association of Proprietary Traders (APT), 174 Auto loans, 154 Automated teller machines (ATMs), 17

The article discusses the advantages and possible disadvantages of CBDC (Central Bank Digital Currencies). This issue gained special relevance after the global financial crisis of 2008-2009. It is no exaggeration to say that in recent years the entire world has been swept up in the fever of creating Central Bank Digital Currency (CBDC). More than a hundred central banks are engaged in this topic. Central banks of the People's Republic of China, India, Sweden, Kazakhstan, the Russian Federation and some other countries can be considered the most advanced in this matter. In about a dozen countries, the authorities have already announced the introduction of digital currency. But it's mostly the smaller jurisdictions that experts say are being used as testing grounds. The Bank for International Settlements (BIS) has studied the issue of CBDC in depth. It provides advisory assistance to individual countries' central banks in the preparation of digital currency projects and also initiates projects to connect individual countries' digital currency systems to use CBDC as a means of payment between countries. Some experts suggest that the BIS has far-reaching goals to create a single CBDC for all countries - a global digital currency that should replace the US dollar (Heller, 2021). As for the International Monetary Fund (IMF), until recently the topic of CBDC was of peripheral interest to it. However, by 2023, the IMF's interest has shifted towards digital currency. In April of this year, the annual spring session of the governing bodies of the International Monetary Fund and the World Bank (WB) was held in Washington, where there were a number of speeches on the topic of CBDC. Keywords: digital currency, cryptocurrency, bitcoin, central bank digital currency, commercial banks, central banks.

The most recent development in digital currency and payments is Central Bank Digital Currencies (CBDCs). In an effort to regain monetary sovereignty, some central banks have either stated their intention to do so (such as the US Federal Reserve, the European Central Bank, and the Bank of England) or have already done so (such as the People's Bank of China). This may be the last chance for these central banks to do so. In our recent work, this paper hypothesise that CBDCs represent a last frontier in the field of digital money and digital payments, rather than only signalling the state's comeback in this area. However, there are a number of issues with CBDCs, including as their practical use and legal classification, as well as concerns about the technology that central banks would use to implement them in the economy. Legally speaking, CBDCs would be considered a central bank liability, or a claim on the central banks, and are intended to be a type of fiat currency. Given the digitisation of international payments, which is dependent on the technology's connectivity, certain CBDCs may be utilised across borders in addition to domestically.

Institutional and historical dimensions of the money evolution. The aim of the chapter is to show the evolution of forms of money, indicating the institutional determinants of changes. The analysis presented in the chapter shows that over the centuries – with the development of the economy and the increasing importance of trade – the nature and role of money have changed. At the same time, forms of money have also evolved – from primitive payers to modern electronic or digital money. The evolution of money was however supported by institutional changes in the economies and financial systems. Currently, fiat money coexists in the form of physical cash and electronic money, what results and is backed by evolved role of the central bank. The presented evolution of the forms of money confirms also a paradox of banknotes – on the one hand, there is a reduction in the role of cash in payment systems, and on the other hand, there is an increase in demand for high-denomination banknotes due to the value storage motive. The role of cash increases in times of crisis. At the same time, central banks are working on a new form of money – central bank digital currency (CBDC). The dual role of central banks in the provision of money (physical and electronic) to the economy is a proof of the strong institutional background in the evolution of the forms of money. The current phase of money evolution is also connected with strengthening of the role of central banks in economic life thanks to the increase in their importance in areas that have not been their domain so far. To sum up, the presented analysis shows that the evolution of money is strongly dependent on the changing role of institutions in the economy. Currently, the decisive one is the central bank, which is the main entity shaping the evolution of money. However, this broad and expanding role (from purely physical to digital as well) strengthens the central banks themselves.

One of the most relevant and widely discussed trends in the financial sector is the development of a new payment technology – central bank digital currency (CBDC). CBDC is central bank-issued digital money denominated in the national unit of account, and it represents a liability of the central bank. It differs from electronic reserves (which cannot currently be accessed by individuals), physical cash, cryptocurrencies and other private digital tokens. Central banks around the world have been researching the concept and design of CBDC for several years and their work continues apace amid the COVID‑19 pandemic. This general trend encompasses large differences across jurisdictions and types of economies. Each country should make its own choice of the CBDC design, taking into account its particular circumstances. Over the last years, the share of central banks actively engaging in some form of CBDC work has increased significantly. Central banks are moving from conceptual research of CBDC to experimentation and pilot projects. CBDC projects differ starkly across countries, both in their motivations and their economic and technical design. Rising number of central banks are considering retail CBDC rather than wholesale, and “hybrid” or “intermediated” operational architectures where the CBDC is a direct claim on the central bank, but the private sector manages customer-facing activity. The paper reviews the recent advances in CBCD projects, and the experience of the countries in more advanced stages of CBCD engagement, namely the particularly advanced CBDC Chinese project of the e-yuan of the People’s Bank of China and Swedish e-krona project of Sveriges Riksbank.

Advances in technology and digitalisation are widespread and affect all facets of life, including jobs, education and social interactions. Electronic devices and high-speed networks have become practically ubiquitous, leading to the rise of the modern, digital consumer, who is positively inclined towards mobile and online platforms and is increasingly the driving force of consumption. The need for speed, convenience, round-the-clock availability and an enhanced user experience has led to significant changes in the payments space. These include the emergence of non-bank payment service providers, private cryptocurrencies and real time gross settlement (RTGS) enhancements. These changes have prompted many central banks to study the possibility of a central bank digital currency (CBDC) as a payment token and the impact it could have on their economies. Electronic central bank-based currencies have been in place for decades. They are in the form of banknotes and serve as reserve balances that banks and participating financial institutions maintain with central banks. The latter are used for interbank settlements. CBDC is a potential new form of money, issued digitally by the central bank and intended to serve as legal tender. Given that these are government-issued legal tender, CBDCs will need to be backed by government debt. This paper aims to provide an understanding of the concept of CBDCs, the case for and against CBDCs and the CBDC experiments worldwide that explore central bank investigations around CBDC usage.

Central bank digital currencies have been on the rise for the past few years, especially after the emergence of cryptocurrencies like Bitcoin, Ethereum, Ripple and others. Leading central banks like the People's Bank of China and Riksbanken (Swedish Central Bank), and some of the other central banks around the world have been looking to develop and test central bank digital currencies around the world. Nonetheless, the main question that we need to answer is if the cryptocurrencies or central bank digital currencies (CDBC) will become the main form of money in the future or will these currencies harmoniously co-exist within the economy paradigm? This paper applies monetary and political economy concepts to discuss how a potential central bank digital currency can be developed and how it would compete with cryptocurrencies. In conclusion, however, the introduction of a central bank digital currency will reduce the monetary policies issues rather than create new issues and this paper will explain how this can be achieved.

Central bank digital currencies have been on the rise for the past few years, especially after the emergence of cryptocurrencies like Bitcoin, Ethereum, Ripple and others. Leading central banks like the People's Bank of China and Riksbanken (Swedish Central Bank), and some of the other central banks around the world have been looking to develop and test central bank digital currencies around the world. Nonetheless, the main question that we need to answer is if the cryptocurrencies or central bank digital currencies (CDBC) will become the main form of money in the future or will these currencies harmoniously co-exist within the economy paradigm? This paper applies monetary and political economy concepts to discuss how a potential central bank digital currency can be developed and how it would compete with cryptocurrencies. In conclusion, however, the introduction of a central bank digital currency will reduce the monetary policies issues rather than create new issues and this paper will explain how this can be achieved.

This research discusses various issues associated with central bank digital currency that is identified as a new form of money. This paper aims to identify the key prerequisites for the issuance of central bank digital currencies, to discuss the key characteristics of central bank digital currencies and analyze the possible impact of central bank digital currencies on the financial system. The author uses the methods of synthesis, analysis, logical method, comparison, induction, deduction. The research highlights the key principles that should be considered when making decisions on the issuance of central bank digital currency. The paper emphasizes that the issuance of central bank digital currency can be successful if it has competitive advantages over existing forms of fiat money. The research identifies the main characteristics of central bank digital currencies. The paper discusses whether central banks should pay interest on fiat digital currencies. The author notes that the impact of central bank digital currencies on the financial system is expected to vary in different periods of time depending on the phase of the economic cycle and the level of interest rates in the economy. The research shows that central bank digital currency will stimulate the digitalization of the financial system while at the same time it will not create additional risks to financial stability. Introducing central bank digital currency is primarily aimed at promoting the efficient payment system. Further research is needed into mechanisms for the technical implementation of digital currency issuance, taking into account the possible risks associated with introducing fiat digital money.

Central banks around the world are considering whether they should issue central bank digital currencies (CBDCs). Many are doing this mainly to become familiar with the problems involved, should other central banks decide to issue them. Some, including the European Central Bank (ECB) and the People’s Bank of China seem more intent on issuing them. Wholesale CBDCs, which would not be available to the general public, pose relatively few problems and could bring identifiable benefits to the international payment system. Retail CBDCs, available to the general public are more controversial. Their advantages to consumers are unclear and the dangers they could bring to financial stability through disintermediation of the commercial banks are obvious. There are solid systemic arguments in favor of CBDCs as a form of public money and as a public interest based counter weight to profit oriented private payment providers, but many of the other advantages touted for CBDCs turn out to be either make weight or contradictory, whereas the danger of disintermediation seems much more real. The central banks believe they can deal with these problems through clever design. But on closer examination, the solution proposed for one problem often comes at the expense of making it more difficult, if not impossible, to achieve one of the other goals. While the central banks have so far devoted a great deal of time and attention to questions of high level policy and technical design, they appear to be just now turning to developing the value proposition for users. The most recent research on public acceptance of CBDCs carried out for the ECB indicates they have quite a long way to go to convince the public and other stakeholders of the advantages of what they are proposing. To the extent they will need legislative action to implement their projects, for example to achieve legal tender status for their CBDCs, a lack of public demand may hinder or at least slow their adoption.

Central banks around the world are considering how retail central bank digital currencies (CBDCs) may help to advance financial inclusion. While CBDCs are not a magic bullet, they could be a further tool to promote universal access to payments and other financial services if this goal features prominently in the design from the get-go. In particular, central banks can consider design options to: (1) promote innovation in the two-tiered financial system (eg allowing for non-bank payment service providers); (2) offer a robust and low-cost public sector technological basis (with novel interfaces and offline payments); (3) facilitate enrolment (via simplified due diligence and electronic know-your-customer processes) and data portability; and (4) foster interoperability (both domestically and across borders). Together, these features can address a range of specific barriers to financial inclusion: geographic remoteness, institutional and regulatory factors, economic and market structure issues, characteristics of vulnerability, lack of financial literacy and low trust in existing financial institutions. This paper draws on interviews with nine central banks with advanced work on CBDCs and financial inclusion — the Central Bank of the Bahamas, Bank of Canada, People’s Bank of China, Eastern Caribbean Central Bank, Bank of Ghana, Central Bank of Malaysia, Bangko Sentral ng Pilipinas, National Bank of Ukraine and Central Bank of Uruguay. It gives concrete examples from the central banks’ work and discusses challenges, risks and regulatory and legal implications. It argues that while CBDCs hold promise for furthering financial inclusion, CBDC issuance may also require new laws and regulations to be enacted, or existing laws to be revised.

Subject. The article discusses the potential use of digital currencies as a new form of money that is explored by various central banks around the world. Such innovations may alter the structure of money circulation, and have ambiguous effects on the transmission mechanism of monetary policy. Objectives. The aim is to explore the key characteristics of central bank digital currencies (CBDCs) design and their impact on the monetary system. Methods. The study draws on general scientific methods, i.e. analysis, synthesis, comparison, scientific abstraction, typology, generalization, mathematical analysis and modeling, deduction and induction. Results. The paper presents a general definition of CBDCs and highlights the main challenges associated with their issuance. It suggests that the most suitable concept is interest-bearing CBDCs with indirect free exchange for reserves and non-guaranteed convertibility into deposits. This configuration of the monetary system allows the central bank to have a new monetary policy tool at its disposal and address a number of issues related to the use of CBDCs. Conclusions. The design of CBDCs depends on central bank's objectives. If the monetary authority aims to enhance financial inclusion, it should introduce non-interest-bearing, universally accessible CBDCs. However, if the central bank's goal is to acquire a new monetary policy instrument and ensure the stability of the financial system, the CBDCs should provide appropriate yield that corresponds with the central bank’s objectives.

The Bank of England is considering the issuance of a central bank digital currency. It is not the only central bank in the world that has opened discussions in this area, as 80% of central banks in the world are engaging. Last year the Bank of England published a discussion paper which looks at several critical issues in consideration of the issuance of a native digital pound. Amongst the topics dealt with in the discussion paper are considerations pertaining to design (technology and economic), risks, and opportunities, as well as regulatory aspects. This chapter examines the understanding of the concept of central bank digital currencies, both at a global level and at the (current) national level. It examines issues of design principles and the genre of CBDC being contemplated by the Bank of England as well as the regulatory aspects that arise when considering the introduction of a new form of money into an already existing and regulated payments system.