01877cas a2200265 a 4500 AALejournalIMF015985 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513519883 1018-5941 BD-DhAAL BD-DhAAL Agur, Itai. Designing Central Bank Digital Currencies / Itai Agur, Anil Ari, Giovanni Dell'Ariccia. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (38 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We study the optimal design of a central bank digital currency (CBDC) in an environment where agents sort into cash, CBDC and bank deposits according to their preferences over anonymity and security; and where network effects make the convenience of payment instruments dependent on the number of their users. CBDC can be designed with attributes similar to cash or deposits, and can be interest-bearing: a CBDC that closely competes with deposits depresses bank credit and output, while a cash-like CBDC may lead to the disappearance of cash. Then, the optimal CBDC design trades off bank intermediation against the social value of maintaining diverse payment instruments. When network effects matter, an interest-bearing CBDC alleviates the central bank's tradeoff. Mode of access: Internet Ari, Anil. Dell'Ariccia, Giovanni. IMF Working Papers; Working Paper ; No. 2019/252 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/252/001.2019.issue-252-en.xml IMF e-Library