Вплив цифрових валют центральних банків на міжнародну фінансову систему

This chapter collects the slides from Prof. Andrew Rose (U C Berkeley and Dean NUS Business School since 2019) who commented on Prof. Engels’ “The Implications of Digital Currencies for Monetary Policy and the International Monetary System” (see Chapter 7).Prof. Andrew Rose agreed with the main conclusion that private sector digital currencies would have little immediate effect on monetary policy or the international monetary system. However, the potential of digital currency to increase capital mobility over time may make the choice between fixed exchange rate and monetary sovereignty sharper. Digital currencies may facilitate the loosening of capital controls. Prof. Rose commented that private digital currencies, even in aggregate, are fairly small: the total stock of them is less than 2% of worldwide currency and less than 4% of daily foreign exchange transactions. Because of their inherent volatility, private digital currencies do not meet the requirements of being money: a medium of exchange, unit of account and store of value. Private digital currencies cannot discipline the central bank’s monopoly on money supply. More fundamentally, it is not clear if private (decentralized) digital currencies can be algorithmically designed to stabilize prices, counter business cycles and serve as a lender of last resort, all of which are currently functions residing with the monetary authority.Prof. Rose argued that a central bank digital currency can indeed give a monetary authority the flexibility to offer negative interest rates. A central bank, however, needs to safeguard against hacking and create its own ‘know your client’ (KYC) protocols and risks substituting practices for commercial banks’ deposits. He further pointed out that with or without a central bank digital currency, the monetary authority’s policy assignment remains: a society gives its central bank power and independence in return for price and financial stability.

This chapter collects the slides from Prof. Andrew Rose (U C Berkeley and Dean NUS Business School since 2019) who commented on Prof. Engels’ “The Implications of Digital Currencies for Monetary Policy and the International Monetary System” (see Chapter 7).Prof. Andrew Rose agreed with the main conclusion that private sector digital currencies would have little immediate effect on monetary policy or the international monetary system. However, the potential of digital currency to increase capital mobility over time may make the choice between fixed exchange rate and monetary sovereignty sharper. Digital currencies may facilitate the loosening of capital controls. Prof. Rose commented that private digital currencies, even in aggregate, are fairly small: the total stock of them is less than 2% of worldwide currency and less than 4% of daily foreign exchange transactions. Because of their inherent volatility, private digital currencies do not meet the requirements of being money: a medium of exchange, unit of account and store of value. Private digital currencies cannot discipline the central bank’s monopoly on money supply. More fundamentally, it is not clear if private (decentralized) digital currencies can be algorithmically designed to stabilize prices, counter business cycles and serve as a lender of last resort, all of which are currently functions residing with the monetary authority.Prof. Rose argued that a central bank digital currency can indeed give a monetary authority the flexibility to offer negative interest rates. A central bank, however, needs to safeguard against hacking and create its own ‘know your client’ (KYC) protocols and risks substituting practices for commercial banks’ deposits. He further pointed out that with or without a central bank digital currency, the monetary authority’s policy assignment remains: a society gives its central bank power and independence in return for price and financial stability.

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

Central bank digital currencies (CBDCs) are been designed a ‘new normal’ for the world of finance in which payments (digital currency) can be made directly from one party to another without financial intermediaries regardless macroeconomic links. Digital currency has ushered the world of finance into uncharted waters as central banks and international institutions crumble to fine their feet’s in a fast moving stream of decentralised finance (DeFi) and global stablecoins. As central banks embark on the CBDCs journey, there are number of questions which must be address: What problems are CBDC’s expected to solve? How do current design thinking resolve these problems in Africa? Are there alternatives to CBDCs in Africa ? Broadly, CBDCs are expected to resolve inefficient and costly domestic and cross-border payments and settlement, ensure price stability and financial stability, retain monetary policy independence and digital de-dollarization. A qualitative descriptive design has been adopted in this study.Findings. Central bank digital currencies (CBDCs) well-designed in a new multilateral fair and just international monetary architecture has the potential to ensure price stability and financial stability in both advanced and developing economies in general, but more importantly would enable developing countries to regain some among of monetary policy independence. However, under the CBDCs design thinking within the framework of existing international monetary and financial architecture, no economy in Africa can withstand the powers of BigFintech, DeFi, global stablecoins and foreign sovereign digital currencies. This paper concludes that African countries must decide whether to cede their sovereign power to an independent monetary authority with single digital currency to manage under their control or cede their economic and financial destiny to unaccountable foreign BigFintech and/or foreign sovereign CBDCs in form of digital dollarization. Keywords: digital currency, CBDCs, digital dollarization, international monetary system, Africa DOI: 10.7176/RJFA/12-18-03 Publication date: September 30 th 2021

This paper aims to examine the revolutionary impact of digital technologies—specifically blockchain systems and central bank digital currencies (CBDCs)—on modern financial architecture and the processes of global economic integration. These technologies are rapidly transforming the structure and functioning of both national and international financial systems, placing states, markets, and institutions before new opportunities and challenges within the contemporary economic landscape. Blockchain technology, as one of the core components of Industry 4.0, is widely applied in areas such as peer-to-peer (P2P) transactions, trade finance, smart contracts, digital asset tokenization, and data protection. This research highlights its influence on the functional structure of financial markets, particularly in the context of international payments, transaction transparency, and cybersecurity. Simultaneously, the study explores the evolving role of traditional financial institutions—especially central banks—in the digital age. In Georgia, the emergence of blockchain-based startups in areas like payments, digital contract management, and data security is already evident, positioning this technology as a potential driver of economic transformation in the country. CBDCs, as digital currencies issued by central banks and directed both toward the general public (retail CBDC) and financial institutions (wholesale CBDC), differ from other digital innovations by serving as a strategic instrument that bridges monetary policy, sovereign currency systems, and international financial relations. In addition to blockchain, this study analyzes the potential role of CBDCs in global economic integration—specifically how they support the optimization of cross-border payment systems, increase financial inclusion, and strengthen digital sovereignty, particularly for developing economies. Furthermore, it addresses the geopolitical and regulatory complexities that accompany the global implementation of these technologies. Methodologically, the research employs a mixed-methods approach. The impact of blockchain is evaluated using financial market indicators from Yahoo Finance and Bloomberg, as well as global digital governance indices. The analysis of CBDCs relies on documentary review, including reports from international organizations (e.g., IMF, BIS, World Bank), academic literature, and regulatory frameworks developed by central authorities. The paper is structured as follows: the first section discusses the theoretical and practical aspects of blockchain technology; the second section focuses on the technological and policy foundations of CBDCs; the third section examines their impact on areas such as international trade, financial policy, monetary independence, and cybersecurity. Finally, the case of Georgia is presented as an example of the combined influence of blockchain and CBDCs in an emerging economy. The study’s main conclusion demonstrates that the integration of blockchain and CBDCs is transforming the rules of the game in financial markets. The technological architecture is shifting to a new digital paradigm, where fast, low-cost, and secure transactions are replacing traditional financial intermediaries. Simultaneously, the role of central banks is being strengthened in monetary and credit policy, while their responsibilities regarding cybersecurity and data protection are also expanding. Successful implementation of CBDCs will significantly enhance both domestic financial stability and participation in global monetary relations—provided that international cooperation, legal frameworks, and technical standardization are effectively developed. Similarly, the application of blockchain technology—particularly in Georgia—requires a strategic vision and infrastructure support to harness its potential not only for improving financial products but also for fostering economic development and integration into the global system. Therefore, this paper confirms that the digital technology revolution—namely blockchain and CBDCs—represents not only a technological shift but a profound structural transformation in the global financial architecture, requiring integrated policy approaches and coordinated actions at both national and international levels. Keywords: Blockchain technologies, digital currency, central bank, financial markets, economic integration, Georgian economy, CBDC, international trade, monetary policy.

Digital currency is one of the vital innovative products of Fintech and it has influenced the whole financial industry and supervision field. It first came with personal digital currency, and it changed the forms, circulation, and payment methods of traditional currencies, and different currencies have their own intrinsic value. In the meantime, the central banks of various countries have also tried to control digital currency. Central banks reduce the cost of issuing currency and improve the efficiency of payment. Moreover, the regulatory authorities of various countries have improved the rules when facing the security problems of digital currency. The paper, through methods of qualitative research and literature review, focuses on three parts, which include the difference between private digital currency and central bank digital currency; the difference between each private digital currency; and the difference between central bank digital currencies in various countries. It hopes to provide some insights for further development in this field.

The article is devoted to the impact and role of digital currencies in ensuring the stability of the international financial system amid the digital transformation of the global economic space. It has been established that one of the key issues in contemporary financial regulation is the inherent dual nature of digital currencies, which manifests in their simultaneous function as instruments of financial innovation and as potential sources of instability in the absence of adequate monitoring and regulatory frameworks. Digital currencies (both private and state-issued, including CBDCs – central bank digital currencies) are gradually being integrated into the architecture of the international financial system and becoming a significant component thereof, with their role in ensuring stability encompassing several critical aspects. It has been substantiated that digital currencies contribute to the enhancement and optimisation of international settlements and payments, the reduction of transaction costs, and the increased transparency of financial operations, thereby mitigating systemic risks. By expanding access to financial services (financial inclusion) and strengthening monetary control by central banks over money circulation, digital currencies can reinforce the stability of financial markets, counteract currency and financial crises, and perform an anti-crisis function in preventing destabilising currency and financial factors. It is emphasised that the full realisation of the potential of digital currencies necessitates addressing new regulatory challenges, including cyber threats, destabilising capital flows between currencies, competition between state and private currencies, as well as risks of currency space fragmentation, which requires the establishment of coordinated regulatory frameworks. In conclusion, given appropriate regulatory frameworks, global coordination and the adaptation of financial infrastructure, digital currencies may become one of the key instruments for maintaining long- term stability and sustainable development within the international financial system. To fully realise their potential, it is necessary to account for emerging challenges – cyber threats, risks of capital flow destabilisation and currency competition – and to establish corresponding international regulatory frameworks. Digital currencies, under conditions of proper regulation and coordination, may serve as one of the principal instruments for sustaining stability and fostering sustainable development in the international financial system.

A bifurcation point has arisen in the transformation of the global monetary and financial system, associated with its further digital transformation: will it be based on private digital currencies like Bitcoin, or on the basis of central bank digital currencies (CBDC)? To a large extent, this depends on the willingness of economic agents to use virtual currencies.The purpose of the study is to explore the factors determining the attitude of economic agents to digital currencies and the impact of financial literacy on using these instruments as an investment object and means of payment.The authors use the following research methods: content analysis, retrospective analysis, methods of comparative cross-country analysis, and empirical research in the form of an online survey of graduate financial students. This study is one of the first to reveal differences in the assessment of their knowledge and readiness to use digital currencies of financial and non-financial students, as well as to confirm an adequate assessment of the risks and opportunities of different types of virtual currencies if students have financial knowledge. The research shows that the situation with the decisionmaking of economic agents on the use of cryptocurrencies and the CBDC differs: in the first case, the initiative comes from the economic agents themselves, who make decisions at their own peril and risk; in the second case, economic agents are confronted with the fact of the existence of the CBDC and the need to use them.The authors conclude that the population’s low financial and digital literacy can create a mental barrier to the use of CBDC, complicating their implementation in national monetary systems. The lack of financial literacy leads to an exaggeration of their knowledge by participants in the cryptocurrency market.

The contours of digital payments are still in the making. Recent years have seen the emergence of new instruments best exemplified by public cryptocurrencies like Bitcoin or Big Tech payment systems like Alipay. These developments in the private sector have in turn fueled discussions and projects around the creation of central bank digital currencies. Digital currencies have a lot to offer. They can provide consumers with user-friendly low-cost means of payment and facilitate the integration of payment systems across borders. They may also offer alternatives in countries with dysfunctional national monetary systems. On the supply side, private digital currencies can be a source of funding (e.g., initial coin offerings) and allow businesses to retain consumers and to collect information. Which form of digital currency will eventually prevail has yet to be seen. Popular permissionless cryptocurrencies lack in their current form the price stability necessary to serve as a store of value: accepting a payment in Bitcoin exposes a merchant to costly financial risk. Stable coins pegged to a central-bank currency and backed by safe collateral are an attempt to dim excess volatility (e.g., Tether or Libra). But this guarantee creates new challenges: collateral must be segregated and prudentially supervised to ensure consumer protection. It is unclear which authority would have the capacity and incentives to provide that supervision for a global digital currency. More generally, a private global digital currency would raise a range of public policy issues ranging from tax fraud and money laundering control, to loss of seignorage revenue, impediments to monetary policy and potential threat to financial stability. In that context, Central Bank Digital Currencies (CBDC) may provide a solution that combines the convenience of private digital money with the institutional support of a state. But the scope of a CBDC’s deployment needs to be carefully calibrated: a CBDC directly held by wholesale or retail depositors would compete with bank deposits, possibly limiting banks’ ability to engage in their essential function of maturity transformation through long-term credit. Overall, the deployment of new technologies for payments has the potential to create meaningful value for consumers. However, technological disruption does not upend the fundamental economic principles that have shaped our financial systems and its regulatory framework. Applying these principles may be our best chance to understand the ongoing Fintech revolution.

A Public Option for Bank Accounts (Or Central Banking for All)

The last five years have seen a seismic shift in the debate on digital currencies. Not only in response to private-sector developments on crypto assets and stablecoins, several central banks around the world have embraced the idea of issuing some kind of central bank digital currency (CBDC). However, many of these initiatives are currently constrained to use cases that involve payment transactions in the retail and wholesale sphere. We argue that for CBDCs to be broadly accepted and not just compete with existing, highly efficient bank-led payment systems, it will require instruments that fulfil all functions of money, i. e. means of payment, unit of account but also store of value, thereby providing an avenue to partially or fully substitute physical cash in a modern world. Further, we acknowledge that a world with potent CBDCs, there might be a new equilibrium between bank deposits and CBDC holdings. This might come with changes to the institutional landscape of the financial system, with financial institutions regrouping around their basic functions of capital, credit and information intermediation and risk management. As such, a CBDC should in the long run be judged against the objective of preserving trust in the financial system and making it more effective and efficient rather than preserving current structures. Finally, we argue that a CBDC that is hampered by disproportionate non-financial considerations, such as compliance or political concerns, might face stiff competition from private digital currencies in particular in countries that do not issue a reserve currency.

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.

The introduction of Central Bank Digital Currency (CBDC) is a game-changer in the world of global money. Given the digital realm reforming monetary systems, central banks are getting keen on CBDCs to offer a state-backed alternative to private digital currencies and payment systems. This paper aims at carrying out a brief analysis of CBDCs and their impact on monetary sovereignty in view of globalization, technological disruption and rising decentralized finance. Central Bank Digital Currencies (CBDCs) hold promise for bolstering the state’s monetary policy. However, they also pose various challenges to the financial stability of states and cross-border payments involving CBDCs. The study also mentions the changing character of the role of central banks such as the Reserve Bank of India and compares international approaches like the digital yuan of China and the digital euro of the European Union. The paper concludes that CBDCs represent an instrument to strengthen monetary sovereignty as well as a catalyst to redefine monetary sovereignty in the digital age. INTRODUCTION The Money has changed from bartering to metallic coins, paper currency, and now digital currency. Cryptocurrencies like bitcoin have been rising in value at a rapid rate in recent years. As a result, the dollar value and stock markets have been challenged. Decentralized digital currencies trade without a central authority which threatens to undermine the sovereignty of money. #Centralization In this context, countries’ central banks around the world have started to investigate the Central Bank Digital Currency (CBDC). It is a digital form of the sovereign currency that the state issues and regulates. CBDCs are regulated by an authority unlike cryptocurrencies which are decentralized and do not have a backing of a central authority over them. In a rapidly digitalizing economy, states are striving to gain more control over the monetary and financial system.At the heart of this debate surrounding the eurozone members and their exceptional trade ties with Europe lies monetary sovereignty. The emergence of digital currencies private and state raises questions of the future of this sovereignty.The study aims to critically analyze the interrelationship between CBDCs and monetary sovereignty. The implementation of CBDCs allow the central banks to strengthen their control over the monetary authority and also reveal the risks it carry.

The emergence of digital currencies represents one of the most significant financial innovations of the 21st century, fundamentally challenging traditional monetary systems and the role of central banking. This comprehensive analysis examines the multifaceted economic impacts of both central bank digital currencies (CBDCs) and private digital currencies on the United States economy and financial markets. The study focuses particularly on their implications for monetary policy effectiveness, inflation control mechanisms, and the global dominance of the U.S. dollar in international financial systems. Through extensive analysis of recent developments, regulatory frameworks, and market data, this research reveals that while digital currencies offer substantial opportunities for financial innovation and inclusion, they also present significant challenges to traditional monetary policy transmission and financial stability. The findings suggest that the Federal Reserve's cautious approach to CBDC development, combined with evolving private cryptocurrency markets, will likely reshape the landscape of American finance over the coming decade.

The continuous development of money and payment instruments is a matter of concern for each central bank. As a response to the use of cryptocurrencies, more and more central banks intend to issue digital currencies - the so-called Central Bank Digital Currency (CBDC). Information Technology progress and new financial elements determine central banks’ adaptation to these new challenges. All over the world, central banks have explored the opportunity of issuing CBDC at different stages; some banks are conducting research, others are in the testing phase, and only a select few have begun distributing digital currency to the public. Against this background, our review paper aims to analyze the existing literature about central bank digital currency and contextualize it with financial stability. On the one hand, we underline the main research directions on this topic. On the other hand, we use VOSviewer software to identify the most frequent and essential keywords and the nodes between keywords characterizing the link between CBDC and financial stability. We show that CBDC issuance has complex implications for the economic and financial system. Central banks must carefully consider the design features of digital money and the potential benefits and risks of CBDC.