Central Bank Digital Currency: New Technological, Political and Social Scenario: China's Initiative

Abstract

Numerous central banks are studying the possibility of issuing a sovereign digital currency. The Bahamas already issues one, and China is testing its own. This trend is influenced by the technological development that allows such issuance, the competition of private digital currencies and the purpose of central banks to promote financial inclusion, reduce transaction costs in the local and international market and combat financial crimes. Depending on its design, a central bank digital currency can have significant effects on the money and financial market and society.