We study the optimal design of a central bank digital currency (CBDC) in an environment where agents sort into cash … convenience of payment instruments dependent on the number of their users. CBDC can be designed with attributes similar to cash or … cash-like CBDC may lead to the disappearance of cash. Then, the optimal CBDC design trades off bank intermediation against …

The level and trend in cash use in a country will influence the demand for central bank digital currency (CBDC). While …-not better. Demand for digital currency will thus be weak in countries where cash use is already very low, due to a preference … for cash substitutes (cards, electronic money, mobile phone payments). Where cash use is very high, demand should be …

handling potentially contaminated cash. This paper is the first empirical attempt in the literature to investigate whether the … risk of infectious diseases affects demand for physical cash. Since the intensity of cash use may influence the spread of … lowers demand for physical cash, after controlling for macroeconomic, financial, and technological factors. While the …

, reduce payment risk, and have significantly replaced the use of cash, cards, or check and direct debit payments. We note the …