TY  - THES
U1  - Abschlussarbeit (Bachelor)
A1  - Russell, Kieran-Lee
T1  - Analysis of Potential Impacts and Implications of Private-Issued vs. Central Bank-Issued Digital Currencies on a Country’s Monetary Policy
N2  - New developments in decentralized ledger technologies may have a huge impact on how we perceive and use money now and in the future. Most notably, it has led to the development of cryptocurrencies and a variation thereof –stablecoins. This thesis discusses the potential impact of Proof of Work based cryptocurrencies such as Bitcoin on the money market and the central bank’s ability to maintain control over the money supply. The IS-LM model is used to evaluate the effects of a private-issued digital currency. However, due to the characteristics of POW based cryptocurrencies, their impact on the money market is neglectable. In contrast, private-issued stablecoins of large international businesses with the potential of gaining enough users to overcome hindering network effects may pose a serious threat to the financial system, if there is no regulation on their usage.
As a response to this development and combined with the phenomenon of a declining cash usage in many countries, central banks have started to conduct research in their own digital currency, namely central bank digital currency (CBDC). Countries such as Sweden or The Bahamas have already started with the implementation of trial phases of their respective CBDC. However, design choices of the country’s digital currency differ due to financial, geographical, and cultural circumstances, among others. Nevertheless, many countries have utilized decentralized ledger technologies as the underlying technology for CBDC, showing its promising potential for further research and future developments.
KW  - Central bank digital currency
KW  - CBDC
KW  - Cryptocurrency
KW  - Blockchain
Y2  - 2020
U6  - https://nbn-resolving.org/urn:nbn:de:bsz:fn1-opus4-67465
UN  - https://nbn-resolving.org/urn:nbn:de:bsz:fn1-opus4-67465
ER  -