View source for Yannic, Rieder, Digital Currencies - CBDCs, BSc, Spring 2023

== Details == 
* Author: Yannic Rieder
* Title: Digital Currencies
* Supervisor: Prof. Dr. Jörg Osterrieder
* Degree: Bachelor of Science 
* University: Bern University of Applied Sciences
* Year: 2023
* Status: Working Paper

== Summary == 

This undergraduate thesis presents a comprehensive analysis of Central Bank Digital Currencies (CBDCs), exploring their potential impact on financial stability, monetary policy, payment systems, and commercial institutions, drawing on an extensive literature review to highlight key benefits, challenges, and the transformative role CBDCs can play in the future global financial landscape, if technological and privacy concerns can be successfully navigated.

== Abstract == 

Due to the accelerated development of digital technology, Central Bank Digital Currencies (CBDCs) have emerged as a significant area of study, with the potential to radically alter the global financial landscape. This undergraduate thesis examines CBDCs' potential effects on financial stability, monetary policy, payment systems, and the function of commercial institutions. It is based on a comprehensive literature evaluation and focuses on four seminal papers that provide crucial insights into the development and adoption of CBDCs.

The exhaustive analysis of the selected literature reveals crucial findings, casting light on CBDCs' potential benefits and implementation challenges. Aspects such as the efficacy and security of payment systems, the promotion of financial inclusion, potential threats to financial stability, and the evolving role of commercial banks within this novel ecosystem are the primary focus. Consideration is given to the lessons learned from previous CBDC implementations, highlighting their impact on CBDC effectiveness and overall impact.

Despite obstacles such as technological complexity and privacy concerns, CBDCs offer a number of potential benefits, including greater control over monetary policy, greater financial inclusion, and lower transaction costs. The successful implementation of CBDCs would rely heavily on achieving a balance between these benefits and risks, as well as nurturing financial literacy and policy coordination.

As central banks around the world continue their CBDC-related research and development, the implications for the future of currencies and the entire global economic system remain substantial. This thesis concludes with a discussion of these implications and a demand for additional research to better understand the challenges and opportunities associated with the development and adoption of CBDCs.

In conclusion, CBDCs will likely have a significant impact on the future of currencies. The convergence of digital technologies and monetary systems has facilitated the expansion of CBDCs, necessitating the concerted efforts of all stakeholders for their successful implementation. As CBDCs continue to develop, there is a vast opportunity for additional research, especially regarding their impact on global economic stability and financial inclusion. This thesis emphasizes the significance of continued research and collaboration between central banks, commercial institutions, and academic institutions as we navigate the future of digital currency. CBDC research is a promising and potentially transformative area of study at this dynamic intersection of technological and economic innovation.

== Links == 

* [https://drive.google.com/drive/folders/1TKiGk8RVm1E7ncTgBvVrYekRiN2pAbFW?usp=sharing Google Drive]

== Contact == 
* [mailto:joerg.osterrieder@bfh.ch Prof. Dr. Jörg Osterrieder]
* [mailto:yannic.rieder@students.bfh.ch Yannic Rieder]