Who Should Make Kroner?

OPEN ARCHIVE

Union Jack
Dannebrog

Who Should Make Kroner?

Show full item record

Title: Who Should Make Kroner?
A Review of Danmarks Nationalbank's Analysis of CBDC
Author: Bjerg, Ole; Nielsen, Rasmus Hougaard
Abstract: This paper is a review of Danmarks Nationalbank's recent analysis of the prospects of implementing a Central Bank Digital Currency (CBDC) in Denmark. We concur with Nationalbanken's conclusion that CBDC does not add efficiency or further functionality to existing payment solutions. We argue, however, that their analysis fails to take into account the potentials for increased financial stability given the fact that CBDC carries no credit risk. We also find that Nationalbanken's dismissal of CBDC on the grounds that it does not provide new monetary policy tools, since interest rates are bound by the fixed exchange rate regime, fails to consider the value of CBDC in the event of a future crisis. Finally, we argue that the Nationalbanken's views may reflect a primary concern with the preservation of the existing banking sector in its current form over and above the needs of the general public.
URI: http://hdl.handle.net/10398/9592
Date: 2018-02-19

Creative Commons License This work is licensed under a Creative Commons License.

Files Size Format View
Who should make ... CBS Working Paper 2018.pdf 161.9Kb PDF View/Open Working paper

This item appears in the following Collection(s)

Show full item record