Digital currencies in financial networks

【Author】 Castren, Olli; Kavonius, Ilja Kristian; Rancan, Michela

【Source】JOURNAL OF FINANCIAL STABILITY

【影响因子】3.554

【Abstract】We introduce a central bank digital currency (CBDC) in the network of financial accounts. Simulating a shift of deposits by both households and non-financial corporations from the banking sector to the central bank, we model the different responses of the affected institutional sectors. We find that the introduction of CBDC generates funding shortages in banks, which may propagate to other sectors. In addition, significant adjustments in the balance sheets of all sectors trigger large moves in securities prices and induce changes in the financial network structure. Finally, we extend the analysis to the introduction of a crypto financial asset (stablecoin) issued by either a domestic or a foreign entity.

【Keywords】Digital currency; CBDC; Stablecoins; Macro-network; Financial intermediation; Financial stability

【发表时间】2022 JUN

【收录时间】2023-02-27

【文献类型】实验仿真

【主题类别】

区块链应用-虚拟经济-CBDC