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Central Bank Digital Currencies: What They Are, What They Might Become, and What They Mean for Credit Unions, Report #559
Abstract
Today, most CBDCs exist only as proposals, prototypes, or trials, and there is little consensus on questions around efficiency, surveillance, and financial inclusion. However, with countries around the world beginning to issue their own versions of CBDCs and the United States Federal Reserve publishing a long-anticipated report on CBDCs earlier this year, there is a growing recognition that CBDCs will have an important role to play in the digital landscape of the future. As central banks begin their journey in considering and implementing CBDCs, understanding the variety of forms CBDCs can take, as well as their associated risks and opportunities, becomes crucial for credit unions.
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