The introduction of a central bank digital currency (CBDC) allows the central bank to engage in large … achieved with a CBDC. During a panic, however, we show that the rigidity of the central bank's contract with the investment …

We consider how a central bank digital currency (CBDC) could transform all aspects of the monetary system and … facilitate the systematic and transparent conduct of monetary policy. In particular, we find that CBDC can serve as a practically … costless medium of exchange, secure store of value, and stable unit of account. To achieve these criteria, CBDC would be …

may pressure central banks to pursue tighter monetary policy. More interestingly, the blockchain technology behind digital …

A central bank digital currency, or CBDC, may provide an attractive alternative to traditional demand deposits held in … private banks. When offering CBDC accounts, the central bank needs to confront classic issues of banking: conducting maturity … result that we call the CBDC trilemma: of the three goals of efficiency, financial stability (i.e., absence of runs), and …

quantitatively different from those in existing government and consumer payment systems. A well-functioning CBDC will require an … flexible enough to accommodate current and future functional requirements and use cases. A CBDC will also in some way need to … the fundamental technical design challenges facing CBDC designers, with a particular focus on performance, privacy, and …

When is record-keeping better arranged through a blockchain than through a traditional centralized intermediary? The … out a blockchain trilemma: no ledger can satisfy all three properties simultaneously. A centralized record-keeper extracts …

We build on economic theory to discuss how blockchain technology can shape innovation and competition in digital …

, these two equations imply that (3) the recurring, “flow”, payments to miners for running the blockchain must be large … versus stock) if both (i) the mining technology used to run the blockchain is both scarce and non-repurposable, and (ii) any … majority attack is a “sabotage” in that it causes a collapse in the economic value of the blockchain; however, reliance on non …

evidence from Bitcoin mining supports our model predictions. The economic insights inform many other blockchain protocols as …