Digital cash – Why Central Banks Should Start Issuing Electronic Money

Matt Lyons

Author(s): Ben Dyson & Graham Hodgson

Publication type: Report

Covering: Central bank digital currency

Publisher: Positive Money

Year of publication: 2016

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With the impending ‘death of cash’ and the rise of digital currencies (such as Bitcoin), there are strong arguments for central banks to start issuing “digital cash” – an electronic version of notes and coins (also known as a central bank digital currency). But this raises a number of questions: how would central banks get new digital cash into the economy, and how would the public use it? What would the advantages be? And would there be any impact – positive or negative – on financial stability?