Working Paper

(WP1/2024) Could Uncapped and Unremunerated CBDC Accounts Disintermediate Banks?

Retail CBDC so far has remained in Sandboxes. This working paper argues why they will continue to remain in Sandboxes so long the amounts one can hold is capped at a low level. Removing the cap on holdings, on the other hand, can raise many challenges for monetary policy, financial stability and central bank independence. If we want to avoid these outcomes, retail CBDC could largely remain a thought experiment.

Author(s): richander Ramaswamy

Published Date: January 2024

*Get access to the full publication by downloading the PDF below.

The SEACEN Centre newsletter

Delivering quarterly insights on regional and global economic issues.

Follow us wherever you get your content

Newsletter Subscription