Digital currencies of central banks: Special features and possibilities of use

Abstract

Subject. The article addresses opportunities and potential of using digital currencies of central banks. Objectives. The aim is to study the current position of digital currencies of central banks in the monetary system, define the economic significance, special features, and areas of possible use, highlight the main advantages and disadvantages of introducing a new form of money. Methods. The study employs general scientific methods, like abstraction, induction and deduction, synthesis, comparative analysis. Results. We disclose prerequisites, economic importance, special features and areas of possible use of digital currencies of central banks (CBDC) in the modern monetary system. We also provide a definition of such currencies as an electronic code accumulated in bank accounts and capable of being sent via communication systems during settlements. The paper reveals the specificity of CBDC as a new form of money, determines the consequences of using CBDC for the world and national monetary systems functioning. Conclusions. The use of the new form of money creates many more problems than it solves. There is no reason to consider the transition to CBDC an inevitable direction in the evolution of the monetary system.