Currently, all major central banks around the world are exploring the case for introducing central bank digital currency (CBDC). Policy makers’ interest has been fueled by the secular decline in the use of cash and the proliferation of digital payments, which pose significant challenges to the status quo of the current financial system. Unsurprisingly, the policy debate has sparked interest in the academic community and led to a rapid growth of research on the wider implications of a CBDC introduction. This paper provides a structured overview of the burgeoning literature on the economics of CBDC. It reviews the ... (full story)