IV. The conceptual framework of central bank digital currencies Péter Fáykiss – Anikó Szombati The actual catalysts behind the increasingly serious discussion about the introduction of a central bank digital currency (CBDC) included technological progress, the rise in electronic payments as well as the appearance of the private solutions addressing the anomalies in payment systems. The way how the different countries introduce it, however, will vary considerably. It will depend largely on the particular problem that a CBDC can resolve, its relationship with monetary policy and the extent to which the central bank wishes to involve market participants in the operation of the new payment system. Besides, potential users’ needs and the differences and options between the available technologies have to be taken into consideration so that a completely new money-type can function alongside cash as used today, while ensuring that the targeted user base actually uses it. This chapter presents and categorises the public policy, economic and technological considerations that need to be taken into account when deciding about the introduction of a CBDC.
1. The main reasons and purposes of introducing a CBDC A little bit more than ten years ago, the concept of central bank digital currencies (CBDC) was linked to financial transactions between central banks and their direct counterparties, i.e. commercial banks and other professional financial service providers with access to the central bank’s instruments. The idea that the digital currency embodying a direct claim on the central
— 95 —
