Cover FinTech Notes
Capital Flow Management Measures in the Digital Age (2): Design Choices for Central Bank Digital Currency
Author: Mr. Dong He, Annamaria Kokenyne, Mr. Tommaso Mancini Griffoli, Mr. Marcello Miccoli, Mr. Thorvardur Tjoervi Olafssonhttps://orcid.org/0000-0001-7478-02981, Gabriel Soderberg, and Hervé Tourpe2
  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund
  • | 2 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund
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:
9798400253850
ISSN:
2664-5912
Pages:
37
Keywords:
Central bank digital currency; Capital flow measures
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.
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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.
Cover FinTech Notes
FinTech Notes
ISSN:
2664-5912
Publisher:
International Monetary Fund