The National Bank of Georgia publishes the next paper in its NBG Working Paper Series. The working papers aim to present research on topics relevant to central banks and economics profession. The papers are circulated to elicit comments and encourage debate on ongoing research. The Working Paper Series are coordinated by the Macroeconomic Research Division and will focus on topics relevant for central bank policy, including macroeconomic modeling, monetary and exchange rate policies, financial stability, etc.

 

The next working paper in the series, titled “What we know on Central Bank Digital Currencies (so far)”, was prepared by Shalva Mkhatrishvili (NBG, VU Amsterdam) and Wim Boonstra (Rabobank, VU Amsterdam). The paper, trying to be a go-to starting point for those just exposed to the topic of Central Bank Digital Currencies (CBDC), thoroughly reviews all the benefits and risks/costs associated with a CBDC in the current literature as well as underlines key areas of this topic that need more research. In addition, the authors try to lay some ground for systematizing three-dimensional linkages between benefits, costs/risks and design choices by (i) discussing probable design choices needed for each item in the list of benefits and costs/risks to-be-mitigated and (ii) overviewing what other benefits and cost/risk-mitigation aims these design choices may be in conflict with.

 

The working papers can be accessed at the following page.