Journal of
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Archive » October 2022 » Cbdc and Digital Euro: token-based or account-based?

Cbdc and Digital Euro: token-based or account-based?

Paolo Mottura
October 2022 - n. 10
Keywords: Central Bank Digital Currency, Banche Centrali, sistemi di pagamento
Jel codes: G21, G28, E42, E44

Many Central banks, including the Ecb, are considering the creation of a Digital public currency, which could take very diversified forms, and therefore have very different meanings and impacts. In particular, the consequences on banks and credit could be disruptive if a Cbdc were created based on a full-fledged digital account, widely spread among the public, including many features, able to transfer liquidity remotely. Other issues, of technical, security and privacy nature, may arise in the case of a token-based solution. Careful technical-legal and ultimately political assessments are therefore necessary to make a choice that on the one hand maintains the unifying social function of legal money, on the other hand does not compromise credit to the economy and hamper the consolidated (and non-competitive) collaborative relationship between Central banks and private banks.

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