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
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
FinTech Notes