A Study On Central Bank Digital Currencies And Their Impact On Potential Economic Growth
- IJLLR Journal
- 15 hours ago
- 1 min read
Abina. J. A, BBA LLB (Hons), School of Excellence in Law, The Tamil Nadu Dr. Ambedkar Law University, Chennai-600113
Deepak. R, BBA LLB (Hons), School of Excellence in Law, The Tamil Nadu Dr. Ambedkar Law University, Chennai-600113
Dhaneshwar. G, BBA LLB (Hons), School of Excellence in Law, The Tamil Nadu Dr. Ambedkar Law University, Chennai-600113
ABSTRACT:
The advent of the modern digital age has changed the way money is used and payments are made. Recently, Central Bank Digital Currencies have been recognized as a growing disrupter in the international finance arena. This article illustrates the multifaceted character of CBDCs, delving into the issues of their design, other features, and their impact on monetary policies, financial stability, and the world economy. Central to the analysis of CBDCs is, however, the many benefits they could offer, which include improved productivity, reduced costs of transactions, and enhanced access to financial services. At the same time, we consider the possible risks, including disintermediation, the role of commercial banks, and maintaining financial stability with CBDCs. Additionally, we assess the implications of CBDCs for the conduct of central banks, the implementation of monetary policy, and the operation of the international monetary system. The design, governance, and regulatory frameworks of CBDCs have to be comprehensive and profound so as to avert abuse alongside the potential of improving the global bank system.
Keywords: Central Bank, Digital Currencies, Monetary Policy, financial stability, financial implications, central banks.
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