Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/246151 
Authors: 
Year of Publication: 
2020
Series/Report no.: 
Staff Memo No. 8/2020
Publisher: 
Norges Bank, Oslo
Abstract: 
The pros and cons of issuing a Central Bank Digital Currency (CBDC) is currently debated by Norges Bank and other central banks. A CBDC would grant access to the central bank balance sheet to a broader set of economic agents, including for example companies or individuals. How such access would be designed or administered are topics of the discussion. One dimension to consider is the potential impact on the stability of the financial system through the effect of CBDC issuance on bank funding markets. This article provides an overview on research related to the demand for financial institutions' funding instruments and derives implications for the issuance of a CBDC. A key message is that CBDC has the potential to substantially crowd out bank funding instruments due to its superior safety features.
Subjects: 
Central bank digital currencies
safe assets
bank funding markets
financial stability
money demand
Persistent Identifier of the first edition: 
ISBN: 
978-82-8379-171-6
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Research Report
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