Potential Implications of Retail Central Bank Digital Currency for Banking Systems Identified in the Literature and by Central Banks

Abstract The aim of the paper is to review and discuss the implications of a new form of central bank money – retail central bank digital currency (CBDC) – for central and commercial banks, identified in the literature and by central banks. The author’s intention is also to indicate possible differences in the approach to this issue by researchers and individual central banks. The study is based on a review covering both academic literature and central banks official documents on retail CBDC. It also includes a comparative analysis of CBDC concepts (disregarding the level of implementation) outlined by 13 European and non-European central banks in their official reports. The study shows that the research papers and official reports by central banks are consistent as for the areas of influence of retail CBDCs on central banks and the banking sector. However, both do not give complete answers to questions about the consequences of CBDCs for banking systems, the economy and society. The analyses published by central banks do not provide, as one might assume, a greater level of detail and precision.