View source for Digital Currencies - Risks and Oportunities of CBDCs

== Details == 
* Authors: Laura Fraga
* Title: Digital Currency - Risks and Oportunities of CBDCs
* Supervisior: Prof. Dr. Jörg Osterrieder
* Degree: Bachelor of Science
* University: University of Applied Sciences Bern, BSc Business Information Systems
* Year: 2023
* Status: Working Paper

== Summary ==

This bachelor thesis aims to provide an overview and in-depth analysis of Central Bank Digital Currencies (CBDCs). The purpose of this research is to examine the development of digital forms of money, assess the opportunities and risks associated with CBDCs, and provide an evaluation of their impact if implemented. In addition, a literature review will be conducted to identify relevant research gaps.

== Abstract ==
In recent years, digitalisation has made considerable progress, which has had an impact on many areas, including the financial sector. As a result, cryptocurrencies have emerged, causing changes in traditional behaviours making cryptocurrencies a new popular digital payment method. The significance of cryptocurrencies as a financial innovation is highlighted by this growth trend and drawn the attention of financial institutions. Consequently, central banks have launched Central Bank Digital Currencies (CBDCs). 

These new developments in the financial sector and the emergence of new digital forms of money have also brought significant disruptions. This has caught the attention of central banks around the world, who are now considering the implementation of CBDCs. However, this raises various complex challenges and critical questions. The problem statement for this thesis revolves around understanding the implications and potential impact of CBDCs on the existing financial system and examining the potential benefits and risks associated with their introduction.

This thesis aimed to provide an overview and understanding of CBDCs, as well as an in-depth analysis of digital currencies and their impact on society as a whole. The goal of this research was to explore the development of digital forms of money, evaluate the benefits and risks of CBDCs, and assess the potential effects of their implementation. Additionally, a literature review was conducted to identify current research gaps associated with CBDCs.

The research approach was explanatory and aimed to gain a comprehensive understanding and assess the impacts of CBDCs. The first step involved conducting a thorough literature search of scientific articles, papers, and relevant studies to establish a solid theoretical foundation. Additionally, through an extensive literature review, case studies were examined and analysed, and research gaps related to CBDCs were identified.

The research findings showed that CBDCs offer numerous potential benefits, such as increased efficiency, faster payment settlements, lower costs, promotion financial inclusion, and the possibility to enhance the stability of the financial system as well as monetary policy. However, the research findings also revealed certain risks associated with the implementation of CBDCs. These risks include their vulnerability to cyber-attacks, the potential to disrupt the financial system, and the possibility of destabilizing traditional banking systems. The thesis concluded that the implementation of CBDCs requires extensive research, planning, and a thorough examination of all the opportunities and risks in advance. The literature review has also demonstrated that the social and economic impacts of CBDCs requires further research.

== Important links ==

* [https://drive.google.com/drive/u/0/folders/10q-oncHNEhpb0LtGjnSyKFFxZxkB1cgP Google Drive]

== Data ==


== Contact == 
* [mailto:oste@zhaw.ch Prof. Dr. Jörg Osterrieder]
* [mailto:laura.fragacalvo@students.bfh.ch Laura Fraga]