Digital Cash

Matt Lyons

Digital Cash

Digital currency directly issued by the central bank and held in central bank accounts that are accessible to ordinary citizens. This is also commonly referred to as “central bank digital currency” (CBDC). The closest form of money to Digital Cash that exists in the current monetary system is Central Bank Reserves.

The term “digital cash” is most closely associated with Positive Money’s policy proposal to introduce digital cash alongside the fractional reserve banking system, with the multiple objectives of recapturing a share of seigniorage from commercial banks, improving financial inclusion, compensating for the decline of physical cash, improving competition in payments services and establishing the infrastructure for a full Sovereign Money System.

Further Reading:

Digital Cash

The Future of Cash

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