Louis Larue
University of Gothenburg
Joakim Sandberg
University of Gothenburg
This paper analyzes the proposal that central banks should issue digital currencies (CBDC) to provide a public alternative to private digital accounts and cryptocurrencies. We build on some The promises and perils of central bank digital currencies recent themes in political economy research to give a broader and more balanced perspective than the existing literature, highlighting both the promises and perils of CBDC. We argue that, on the one hand, the present state of the private financial sector is problematic and regulators should seek to tackle the issues of financial power, financial instability and lack of adequate monetary policy options. On the other hand, implementing CBDC comes with risks of its own, such as that of creating a “Frankenstein scenario” where too much power is given to unelected technocrats. Our tentative conclusion is therefore that CBDC should be seen as a second-best option, while the primary focus of policy makers should be on the possibility of financial re-regulation.
Keywords No keywords specified (fix it)
Categories (categorize this paper)
Edit this record
Mark as duplicate
Export citation
Find it on Scholar
Request removal from index
Revision history

Download options

PhilArchive copy

 PhilArchive page | Other versions
External links

Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library

References found in this work BETA

Add more references

Citations of this work BETA

No citations found.

Add more citations

Similar books and articles

Making Sense of Alternative Currencies.Louis Larue - 2019 - Dissertation, Université Catholique de Louvain
A Conceptual Framework for Classifying Currencies.Louis Larue - 2020 - International Journal of Community Currency Research 24 (1):45-60.
Making Sense of Alternative Currencies: A Summary.Louis Larue - 2019 - Reflets Et Perspectives de la Vie Économique 57 (4):63-72.
The Rationalization of Central Banks.George Selgin - 1993 - Critical Review: A Journal of Politics and Society 7 (2-3):335-354.
The Virtues of Leonhard Euler.Bruce N. Lundberg - 2020 - Journal of Interdisciplinary Studies 32 (1-2):58-80.
Big Data and Central Banks.David Bholat - 2015 - Big Data and Society 2 (1).


Added to PP index

Total views
84 ( #138,277 of 2,505,145 )

Recent downloads (6 months)
43 ( #20,468 of 2,505,145 )

How can I increase my downloads?


My notes