“Economically inefficient and legally untenable”: constitutional limitations on the introduction of central bank digital currencies in the EU

Research output: Contribution to journalArticle (journal)peer-review

1 Citation (Scopus)

Abstract

ECB officials have recently poured scorn on the notion that the ECB could introduce a central bank digital currency (CBDC) in the Eurozone, with one labelling such an initiative as “economically inefficient and legally untenable.” This article assesses the justifications for these claims from legal and economic perspectives. It finds that, based upon prevailing ECB policies and the myriad options available for CBDC design, such claims are flawed. The article further explains that the ECB’s reticence to consider the introduction of CBDC may impair the development of payments systems and obstruct financial inclusion.

Original languageEnglish
JournalJournal of Banking Regulation
Early online date22 Jun 2021
DOIs
Publication statusE-pub ahead of print - 22 Jun 2021

Keywords

  • CBDC
  • Central bank digital currency
  • Constitution
  • EU
  • Financial stability
  • Market neutrality

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