dc.contributor.author
Tercero Lucas, David
dc.contributor.author
Universitat Autònoma de Barcelona. Departament d'Economia Aplicada
dc.date.accessioned
2024-10-29T15:46:54Z
dc.date.available
2024-10-29T15:46:54Z
dc.identifier
https://ddd.uab.cat/record/258890
dc.identifier
urn:oai:ddd.uab.cat:258890
dc.identifier.uri
http://hdl.handle.net/2072/453427
dc.description.abstract
The aim of this study is to disentangle the effects of introducing an interest-bearing central bank digital currency (CBDC) for financial stability using a Diamond and Dybvig (1983) model in which (i) both CBDC and private bank deposits can be used in exchange and (ii) liquidity is created endogenously. Agents have direct access to a CBDC via deposits at the central bank. They use both sight deposits and CBDC deposits to buy goods and commercial banks borrow reserves to cover liquidity needs. The introduction of an interest-bearing CBDC has direct implications on the sight deposits rate and on the loan rate of banks. Besides, if the central bank aims at having a positive net worth and the absence of bank runs, a high supply of a CBDC is a necessary condition to achieve both objectives. If this is not provided, it will endanger financial stability.
dc.format
application/pdf
dc.rights
Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades.
dc.rights
https://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subject
Banking sector
dc.subject
Financial stability
dc.title
Central Bank Digital Currencies and Financial Stability in a Modern Monetary System
