This paper discusses central bank digital currency (CBDC) and its potential impact on the monetary transmission … mechanism. We first offer a general definition of CBDC which should make the concept accessible to a wide range of economists … and policy practitioners. We then investigate how CBDC could affect the various stages of transmission, from markets for …

This paper investigates how the introduction of an interest-bearing central bank digital currency (CBDC) that serves as … deposit market is not fully competitive, the CBDC tends to weaken the pass-through of the interest on reserves. The interest … on CBDC impacts the deposit market more directly compared with the interest on reserves. The CBDC rate can also have …

funding depending on different CBDC designs. We find that the central bank can stabilize the financial sector by acting as a … lender of last resort or by actively governing demand for CBDC. …