02462cas a2200349 a 4500 AALejournalIMF022681 230101c9999 xx r poo 0 0eng d 20.00 USD 9798400206955 1018-5941 BD-DhAAL BD-DhAAL Kahn, Charles. Digital Money and Central Bank Operations / Charles Kahn, Manmohan Singh, Jihad Alwazir. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (23 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 The rise of new and proposed monetary vehicles, including CBDC, stablecoins, payment service providers et cetera, are unprecedented. An important question for central banks is the extent to which these innovations upend the role of and implementation of monetary policy. The paper focuses on the interest rate channel and if digital money (especially CBDC) will change monetary policy and central bank operations. We argue that new policy instruments make sense only to the extent that there is limited substitutability between the various payment sectors. We analyze trends in currency-in-circulation, and how it may impact central bank's seigniorage, monetary base, and transactional velocity of digital money if money demand declines. Liquidity outside the monetary base will also be important to understand. Mode of access: Internet Base Money imf Demand for Money imf International Finance imf International Financial Markets imf Monetary Policy, Central Banking, and the Supply of Money imf Alwazir, Jihad. Singh, Manmohan. IMF Working Papers; Working Paper ; No. 2022/085 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=079 IMF e-Library Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=080 IMF e-Library Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=085 IMF e-Library