Central Bank Digital Currency

A CBDC may be defined as a digital asset that only the central bank may issue or destroy, that is traded at par against banknotes and reserves, that is available 24/7, that may be used in peer-to-peer transactions and that circulates on digital media that are at least partially different from existing media. In general, introducing a CBDC is warranted only if the expected social benefits outweigh the costs. The primary reason for issuing a CBDC would be to offer a perfectly liquid and safe payment instrument that is adapted to technological changes.
This document reports on the work done by an internal Banque de France central bank digital currency (CBDC) taskforce led by Christian Pfister. It reflects the views of the author and not those of the Banque de France or the Eurosystem.
Part One of the report looks at the potential reasons for issuing a CBDC, Part Two considers technical and operational aspects, Part Three deals with the legal framework, while Part Four addresses the macroeconomic, monetary and financial consequences.