Authors: Nipun Agarwal
Addresses: Department of Political Economy, The University of Sydney, Sydney, Australia
Abstract: Central bank digital currencies have been on the rise for the past few years, especially after the emergence of cryptocurrencies like Bitcoin, Ethereum, Ripple and others. Leading central banks like the People's Bank of China and Riksbanken (Swedish Central Bank), and some of the other central banks around the world have been looking to develop and test central bank digital currencies around the world. Nonetheless, the main question that we need to answer is if the cryptocurrencies or central bank digital currencies (CDBC) will become the main form of money in the future or will these currencies harmoniously co-exist within the economy paradigm? This paper applies monetary and political economy concepts to discuss how a potential central bank digital currency can be developed and how it would compete with cryptocurrencies. In conclusion, however, the introduction of a central bank digital currency will reduce the monetary policies issues rather than create new issues and this paper will explain how this can be achieved.
Keywords: political economy; monetary economics; cryptocurrencies.
International Journal of Blockchains and Cryptocurrencies, 2020 Vol.1 No.4, pp.374 - 388
Received: 12 May 2020
Accepted: 17 Aug 2020
Published online: 07 Jan 2021 *