Menu Expand
  1. Journals
  2. Economics, Finance, Business & Management
  3. Vierteljahrshefte zur Wirtschaftsforschung
  4. Vol. 92, Issue 3
  5. pp. 23–36

JOURNAL ARTICLE

Cite JOURNAL ARTICLE

Style
Frenkel, M. Will the Digital Euro Be Attractive Enough to Generate Significant Demand?. Vierteljahrshefte zur Wirtschaftsforschung, 92(3), 23-36. https://doi.org/10.3790/vjh.92.3.23
Frenkel, Michael "Will the Digital Euro Be Attractive Enough to Generate Significant Demand?" Vierteljahrshefte zur Wirtschaftsforschung 92.3, 2023, 23-36. https://doi.org/10.3790/vjh.92.3.23
Frenkel, Michael (2023): Will the Digital Euro Be Attractive Enough to Generate Significant Demand?, in: Vierteljahrshefte zur Wirtschaftsforschung, vol. 92, iss. 3, 23-36, [online] https://doi.org/10.3790/vjh.92.3.23
Format
Download

Will the Digital Euro Be Attractive Enough to Generate Significant Demand?

Frenkel, Michael

Vierteljahrshefte zur Wirtschaftsforschung, Vol. 92 (2023), Iss. 3 : pp. 23–36

Preview Login to order (PDF)

Additional Information

Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/vjh.92.3.23
Language
English
Pages
14
Keywords

Pricing

Individual
€ 19.50 (incl. local VAT if applicable)

Author Details

Michael Frenkel, WHU – Otto Beisheim School of Management, Vallendar/Koblenz

  • Michael Frenkel, WHU – Otto Beisheim School of Management, Vallendar/Koblenz. He studied economics at the University of Mainz, Germany, where he also received his doctoral degree. He then worked as an economist at the International Monetary Fund before returning to academia. He was first at the University of Mainz and then at WHU – Otto Beisheim School of Management, where he was also Rector for 10 years. His extensive international experience comes from working for the International Monetary Fund for several years and from several visiting positions in the United States, Europe, and Asia. His research interests are in international finance, open economy macroeconomics, and European integration. In addition to his research activities, Michael Frenkel has also worked as a consultant for the International Monetary Fund, the World Bank and the European Commission.
  • Email
  • Search in Google Scholar

References

  1. Ahnert, T., Assenmacher, K., Hoffmann, P., Leonello, A., Monnet, C. and Porcellacchia, D. (2022): The Economics of Central Bank Digital Currency (August 1, 2022). ECB Working Paper No. 2022/2713.  Google Scholar
  2. Ali, R., Barrdear, J., Clews, R. and Southgate, J. (2014): The Economics of Digital Currencies. Bank of England Quarterly Bulletin, Vol. 54(3), pp. 276 – 286.  Google Scholar
  3. BIS (2023): Project Icebreaker. Breaking New Paths in Cross-Border Retail CBDC Payments.  Google Scholar
  4. Brunnermeier, M. K. and Landau, J.-P. (2022): The Digital Euro: Policy Implications and Perspectives. Policy Department for Economic, Scientific and Quality of Life Policies, Directorate-General for Internal Policies, PE7 03.337.  Google Scholar
  5. ECB (2019): Card Payments in Europe - Current Landscape and Future Prospects: a Eurosystem Perspective.  Google Scholar
  6. ECB (2023a), Progress on the Investigation Phase of a Digital Euro – Third Report.  Google Scholar
  7. ECB (2023b): Market Research Outcome Report.  Google Scholar
  8. ECB (2023c): Digital Euro – Prototype Summary and Lessons Learned. European Central Bank.  Google Scholar
  9. Frenkel, M. (2023): Wer braucht den digitalen Euro? Blog Wirtschaftliche Freiheit, February 11.  Google Scholar
  10. Frenkel, M. and Munoz, M. (eds.) (2021): The Economics of Cryptocurrencies. Routledge.  Google Scholar
  11. Hanl, A. und Michaelis, J. (2019): Digitales Zentralbankgeld als neues Instrument der Geldpolitik, Wirtschaftsdienst Vol. 99(5), pp. 340 – 347.  Google Scholar
  12. Huynh, K. P., Molnar, J., Shcherbakov, O. and Yu, Q. (2020): Demand for Payment Services and Consumer Welfare: The Introduction of a Central Bank Digital Currency, Bank of Canada, Staff Working Paper 2020 – 7.  Google Scholar
  13. Kantar Public (2022). Study on New Digital Payment Methods.  Google Scholar
  14. Khiaonarong, T. and Humphrey, D. (2022): Falling Use of Cash and Demand for Retail Central Bank Digital Currency, International Monetary Fund Working Paper WP/22/27.  Google Scholar
  15. Khiaonarong, T. and Humphrey, D. (2019): Cash Use Across Countries and the Demand for Central Bank Digital Currency, Working Paper WP/19/46, International Monetary Fund.  Google Scholar
  16. Kotkowski, R. and Polasik, M. (2021): COVID-19 Pandemic Increases the Divide Between Cash and Cashless Payment Users in Europe. Economic Letters, December.  Google Scholar
  17. Li, J. (2023): Predicting the demand for central bank digital currency: A structural analysis with survey data. Journal of Monetary Economics, Vol. 134, pp. 73 – 85.  Google Scholar
  18. Lukonga, I. (2023): Monetary Policy Implications of Central Bank Digital Currencies. International Monetary Fund Working Paper WP/23/60.  Google Scholar
  19. Mancini-G., Tommaso, P., Martinez, M. S., Agur, I., Ari, A., Kiff, J., Popescus, A. and Rochon, C. (2018): Casting Light on Central Bank Digital Currency, IMF Staff Discussion Note, Nr. 18/08.  Google Scholar
  20. Mellor, S. (2021): Inside Sweden’s Ambitious Plan to Turn the krona into a Digital Currency and Fend Off the Rise of Crypto Coins, Fortune, April 9.  Google Scholar
  21. Oban International Blog (2023): Which Countries are Closest to a Cashless Society?, https://obaninternational.com/blog/the-countries-closest-to-a-cashless-future/.  Google Scholar
  22. Panetta, F. (2022): Der digitale Euro und die Entwicklung des Finanzsystems, Einleitende Bemerkungen vor dem Ausschuss für Wirtschaft und Währung des Europäischen Parlaments, June 15.  Google Scholar
  23. Statista (2023): Anzahl verfügbarer Kryptowährungen weltweit in ausgewählten Monaten von Juni 2013 bis Juli 2023. Statista Research Department, July 10, 2023.  Google Scholar
  24. Williamson, St. (2022): Central Bank Digital Currency: Welfare and Policy Implications. Journal of Political Economy, Vol. 130(11), pp. 2829 – 2861.  Google Scholar
  25. Wisniewski, T. P., Polasik, M., Kotkowski, R., and Moro, A. (2021): Switching from Cash to Cashless Payments During the COVID-19 Pandemic and Beyond. Naradowy Bank Polski Working Paper No. 337.  Google Scholar

Abstract

Zusammenfassung: Der Rückgang der Verwendung von Bargeld und das Aufkommen innovativer digitaler Zahlungssysteme haben die EZB wie viele andere Zentralbanken dazu veranlasst, die Einführung ihrer Währung in digitaler Form zu erwägen. Die technischen Probleme bei der Einführung eines digitalen Euro scheinen nicht unüberwindbar zu sein. Ein Thema, das jedoch weniger Beachtung gefunden hat, ist die Nachfrage nach einem digitalen Euro. Der digitale Euro wird nur dann attraktiv sein, wenn er dem einzelnen Nutzer im Vergleich zu den derzeitigen Zahlungssystemen zusätzliche Vorteile bietet. Diese Vorteile können sich auf die Bequemlichkeit, die Erträge, die Kosten, die Transaktionsgeschwindigkeit, das Risiko und den Datenschutz beziehen. Der Beitrag kommt zu dem Schluss, dass in diesen Bereichen derzeit kaum nennenswerte Zusatznutzen erkennbar sind. Es muss also erst noch gezeigt werden, dass ein digitaler Euro tatsächlich den Wohlstand steigert. Auch aus regulatorischer Sicht ergeben sich einige Fragen, da die EZB zu einem direkten Konkurrenten von Geschäftsbanken und Zahlungsdienstleistern werden könnte.

Table of Contents

Section Title Page Action Price
Michael Frenkel: 1
1 Introduction 2
2 What motivates the ECB and other central banks to think about digital cash? 2
3 Design considerations of the ECB on the digital euro 4
4 The demand for a digital euro and the demand for cryptocurrencies 5
5 The demand for the digital euro as a medium of exchange 5
5.1 Convenience 6
5.2 Returns 6
5.3 Speed of payments 7
5.4 Costs of payments 7
5.5 Risk aspects 7
5.6 Data protection 8
5.7 Scope of users and relative volumes 8
6 Empirical evidence 8
7 The digital euro, commercial banks, and the money market 9
8 Issues from a regulatory perspective 10
9 Conclusions 11
References 12

Contact

Duncker & Humblot GmbH Carl-Heinrich-Becker-Weg 9 12165 Berlin, Deutschland T: +49 30 790006-0

Quick Navigation

2024 Duncker & Humblot GmbH

Powered by CloudPublish

We use cookies to ensure that you get the best experience on our website. Learn more about how we use cookies.