Digital currencies in financial networks

Olli Castrén, Ilja Kristian Kavonius, Michela Rancan

Forskningsoutput: ArbetsdokumentVetenskaplig


We introduce a digital currency, either as a central bank digital currency (CBDC) or a financial crypto asset (stablecoin), in the network of financial accounts. Simulating a shift of deposits by both households and non-financial corporations from the banking sector to the digital currency, we model the different responses of the affected institutional sectors. We find that the introduction of a digital currency generates significant adjustments in the balance sheets of all sectors, may trigger large moves in securities prices and induces changes in the network structure. The economic impacts vary depending on the design of the digital innovation, the size of the deposit shift, the channels through which the balance sheet adjustments take place and the timing of the initiative.
UtgivareEuropean Banking Authority
Antal sidor49
ISBN (elektroniskt)978-92-9245-677-1
StatusPublicerad - 2 jul 2020
MoE-publikationstypD4 Publicerad utvecklings- eller forskningsrapport eller studie


  • 511 Nationalekonomi
  • 112 Statistik

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