Chapter 10 Sustainability, Public Security, and Privacy Issues Related to Central Bank Digital Currencies (CBDC)

Chapter 10 Sustainability, Public Security, and Privacy Issues Related to Central Bank Digital Currencies (CBDC)

Economic

About 100 central banks are currently researching or developing their own central bank digital currencies (more specifically CBDCs). Two projects have recently entered production. The introduction of a CBDC by at least one major central bank in the coming years seems inevitable, and this will be a tipping point. CBDC will then enter the mainstream of the banking sector. This trend requires a broader assessment of CBDC projects than central banks do. This chapter discusses concerns regarding the introduction of CBDCs and their design criteria. Addressing these issues at an early stage allows us to mitigate them.The most obvious concern is regarding the public security of central bank money in an era of increasing cyber threats. Another real concern is regarding privacy. However, one particular angle of discussion regarding CBDCs does not receive enough attention – sustainability. This chapter assesses whether and how current CBDC projects address sustainability, public security, and privacy. It then discusses areas worthy of further development to improve the implementation of sustainability by central banks. Finally, this chapter reconstructs the most desirable CBDC designs from the perspectives of sustainability, public security, and privacy, showing how considering these perspectives influences social acceptance of CBDCs.

Rybski, Robert

https://directory.doabooks.org/handle/20.500.12854/114194

Taylor & Francis

2024

Dewi Puspitasari

https://creativecommons.org/licenses/by-nc-nd/4.0/

https://library.oapen.org/bitstream/20.500.12657/76546/1/9781003340454_10.4324_9781003340454-10.pdf

Pdf

English

Textbooks

DOI
10.4324/9781003340454-10

ISBN
9781032374932, 9781032374956

Basel