Cover FinTech Notes
Buy Book in Print
Capital Flow Management Measures in the Digital Age (2): Design Choices for Central Bank Digital Currency
Author:
Mr. Dong He
Search for other papers by Mr. Dong He in
Current site
Google Scholar Close
,
Annamaria Kokenyne
Search for other papers by Annamaria Kokenyne in
Current site
Google Scholar Close
,
Mr. Tommaso Mancini Griffoli
Search for other papers by Mr. Tommaso Mancini Griffoli in
Current site
Google Scholar Close
,
Mr. Marcello Miccoli
Search for other papers by Mr. Marcello Miccoli in
Current site
Google Scholar Close
,
Mr. Thorvardur Tjoervi Olafsson https://isni.org/isni/0000000404811396 International Monetary Fund

Search for other papers by Mr. Thorvardur Tjoervi Olafsson in
Current site
Google Scholar Close
https://orcid.org/0000-0001-7478-0298
,
Gabriel Soderberg
Search for other papers by Gabriel Soderberg in
Current site
Google Scholar Close
, and
Hervé Tourpe https://isni.org/isni/0000000404811396 International Monetary Fund

Search for other papers by Hervé Tourpe in
Current site
Google Scholar Close
Series:
Fintech Notes
Volume/Issue:
Volume 2023: Issue 009
Language:
English
Publication Date:
15 Sep 2023
DOI:
https://doi.org/10.5089/9798400252105.063
ISBN:
9798400252105
ISSN:
2664-5912
Pages:
37
Keywords:
Central bank digital currency; Capital flow measures; CBDC implementation; CBDC ecosystem; IMF Fintech Note 2023/009; IMF Library; smart CFMs; fencing CBDC; Central Bank digital currencies; Capital flow management; Capital flows; Foreign assets; Digital wallets; Global
Legal-disclaimer:
Fintech Notes offer practical advice from IMF staff members to policymakers on important issues. The views expressed in Fintech Notes are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (3 MB) Download Epub
This fintech note looks at how capital flow measures (CFMs) could be implemented with central bank digital currency (CBDC), and what benefits, risks and complexities could arise. There are several implications of the analysis. First, CBDC ecosystems should generally be designed such that they can accommodate the introduction of CFMs. Second, thanks to the programmability of the payment infrastructure given by the new digital technologies, certain CFMs could likely be implemented more efficiently and effectively with CBDC compared to the traditional system. Third, implementing CFMs requires central banks to collaborate on practices and standards. Finally, CFMs on CBDC need to operate alongside traditional CFMs.
  • Collapse
  • Expand
Cover FinTech Notes
FinTech Notes
ISSN:
2664-5912
Publisher:
International Monetary Fund