Record Details

Implementing a Central Bank Issued Digital Currency with Economic Implications Considerations

International Journal of Islamic Economics and Finance

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Field Value
 
Title Implementing a Central Bank Issued Digital Currency with Economic Implications Considerations
 
Creator Mohamed, Hazik
 
Subject Currency; Public Deposit; Policy Tool; Interbank Settlement
 
Description A central bank-issued digital currency (CBDC) could solve the volatility of a privately-issued cryptocurrency as well as keep intact its potential benefits. This research intended to analyze the possibilities for implementing a CBDC in a viable format that is also Shariah-compliant which may have the capacity to tackle issues plaguing the current financial system. We discuss possible scenarios and the resulting impact and consequences of CBDC implementation, through a deep examination of the benefits, opportunities, costs and issues of several conceptual formats. Methodologically, we used qualitative, comparative and analytical assessments on the critical impact on crucial levers like dilution to monetary policy, and the stability of the financial system. Finally, we found that the best format was a non-interest bearing CBDC for the interbank settlement and wholesale payment systems which would have the least disruption to the economy but strongest monetary policy transmission.
 
Publisher Universitas Muhammadiyah Yogyakarta
 
Contributor —
 
Date 2020-01-28
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://journal.umy.ac.id/index.php/ijief/article/view/7582
10.18196/ijief.2121
 
Source International Journal of Islamic Economics and Finance (IJIEF); Vol 3, No 1 (2020): IJIEF Vol 3 (1), January 2020; 51-74
2622-4372
2622-3562
 
Language eng
 
Relation https://journal.umy.ac.id/index.php/ijief/article/view/7582/4931
 
Rights Copyright (c) 2020 International Journal of Islamic Economics and Finance (IJIEF)
http://creativecommons.org/licenses/by-sa/4.0