![]() In this process, we suggest that one measure of cash use is more useful than the others. After showing that declining cash use is largely associated with demographic change, we tie the level of cash use to the likely demand for CBDC in different countries. A tentative forecast of cash use is also made. As the demand for CBDC is tied to the current level of cash use, we estimate the level and trend in cash use for 11 countries using four different measures. Where cash use is very high, demand should be stronger, due to a lack of cash substitutes. ![]() Demand for digital currency will thus be weak in countries where cash use is already very low, due to a preference for cash substitutes (cards, electronic money, mobile phone payments). ![]() While access to digital currency will be more convenient than traveling to an ATM, it only makes CBDC like a bank debit card-not better. The level and trend in cash use in a country will influence the demand for central bank digital currency (CBDC).
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