Digital currencies in financial networks

Olli Castrén, Ilja Kristian Kavonius, Michela Rancan

Tutkimustuotos: ArtikkelijulkaisuArtikkeliTieteellinenvertaisarvioitu

Abstrakti

We introduce a central bank digital currency (CBDC) in the network of financial accounts. Simulating a shift of deposits by both households and non-financial corporations from the banking sector to the central bank, we model the different responses of the affected institutional sectors. We find that the introduction of CBDC generates funding shortages in banks, which may propagate to other sectors. In addition, significant adjustments in the balance sheets of all sectors trigger large moves in securities prices and induce changes in the financial network structure. Finally, we extend the analysis to the introduction of a crypto financial asset (stablecoin) issued by either a domestic or a foreign entity.
Alkuperäiskielienglanti
Artikkeli101000
LehtiJournal of Financial Stability
Vuosikerta60
Sivumäärä14
ISSN1572-3089
DOI - pysyväislinkit
TilaJulkaistu - 2022
OKM-julkaisutyyppiA1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä, vertaisarvioitu

Tieteenalat

  • 511 Kansantaloustiede
  • digital currency
  • CBDC
  • stablecoins
  • macro-network
  • financial intermediation
  • financial stability

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