CBDCs: Work in Progress: An Introduction to Central Bank Digital Currencies

Updated with CBDC news into April 2024.This book describes the history, development, uses, and challenges of CBDCs - Central Bank Digital Currencies. CBDCs are a new form of central bank money issued as a digital equivalent of cash to take advantage of the speed and efficiency of electronic instruments and to compete with private cryptoassets. More than 100 countries are working on CBDCs, which will transform the global monetary system.Designed to supplement college economics, finance, and international relations courses, the book describes CBDCs and its variants along with a history of bitcoin and other private cryptoassets that shows how CBDCs evolved in response. Chapters cover early CBDC projects, detailed analysis of the work underway at the European Union, the ambitious response of the international central banking community, and projects on cross-border uses of CBDCs. Other chapters cover implications for monetary policy and financial stability, CBDCs in support of greater financial inclusion, and challenges facing small- and medium-sized countries.Key words: CBDC, digital currency, central banks, cryptocurrency, international finance, monetary policy, bitcoin, stablecoinsJEL Codes: E42, E44, E52, E58, F53, G21