Issues of integrating central bank digital currency into the fiat money system

Abstract

Since 2020, a digital equivalent of legal tender became one of the most discussed topics among the international community of central banks. Moreover, the Bahamas’ “Sand Dollar” – the world's first actually operating platform has been launched. With the onset of the pandemic, the acceleration of events is influenced by a non-economic factor – the demand for all methods of remote socio-economic interaction. In 2021, based on previous public consultations, the Bank of Russia published the Digital Ruble Concept. The article discusses the background, goals and side effects of creating central bank digital money. The idea of digital transformation of banknotes meets the public demand for a payment instrument that is practical in modern realities, but its implementation is associated with uncertain consequences for the banking sector and the future development of technologies and security standards for settlements using digital solutions. In this context, the rationale for placing on a reimbursable basis the services of private financial agents on the digital money platform is given.