1,721,048 research outputs found
Why the digital euro might be dead on arrival
No full textThe ECB has highlighted its commitment to developing a digital euro and has explicitly stated that the digital currency will adhere to three principles: preserve European strategic autonomy, reduce rent extraction by payment service providers, and serve as a robust monetary anchor when cash transactions decline. This column argues that a fourth, implicit objective – to protect banks and their business model – risks undermining the project. This could prove to be a significant missed opportunity given that social benefits of the digital euro substantially exceed its private ones
Euro numérique : un projet mort né
No full textLa BCE, dans son mandat, doit préserver la stabilité financière. Elle interprète aussi cette mission par la nécessité de maintenir le fonctionnement bancaire actuel en l'état. Ce qui rend peu crédible la mise en oeuvre d'un euro numérique, estiment Cyril Monnet et Dirk Niepelt
Money Creation for Distributed Ledgers: Stablecoins, Tokenized Deposits, or Central Bank Digital Currencies?
No full textOptimal Exclusion
Full text linkIn a canonical model of borrowing and lending, an exclusion technology that features full exclusion for a deterministic number of periods following default maximizes stationary equilibrium welfare. This exclusion policy maximizes the stationary volume of mutually beneficial lending transactions. It also maximizes the average welfare of the excluded. The optimal length of exclusion depends on fundamentals such as borrower patience and the direct cost of default. It also depends on incentives to default for strategic rather than exogenous reasons
An Impossibility Theorem on Truthful Reporting in Fully Decentralized Systems
No full textWe show that truthful reporting about the realization of a publicly observed event cannot be implemented as a unique equilibrium in a completely decentralized environment
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