Reasons and Macroeconomic Aspects of the Introduction of the Digital Currency of Central Banks

Central banks around the world actively participate in the research, elaboration, and introduction of central bank digital currency (CBDC).Mostly, the reasons relate to expansion of parallel circulation of private digital currencies and necessary changes in monetary policy framework.In the conditions of insufficient experience and empirical data, scientists and practitioners intend to create guidelines and find solutions for successful implementation of CBDC project.This article joins the debates in terms of reasons and macroeconomic aspects of introduction of CBDC.The tasks are as follows: to characterize peculiarities of CBDC in the context of private digital currencies; to characterize peculiarities of the modern monetary policy realized by central banks; to characterize the possible role of CBDC within the modern monetary policy; to make conclusions on possible effects of introduction of CBDC.Monographic method, methods of logical analysis and synthesis, deduction and induction are applied within the article.The novelty of the present article appears as characteristics of introduction of CBDC in the context of transition of monetary policy from quantitative easing to quantitative tightening, and the circulation of private digital currencies.The project of CBDC is very complicated and unknown for financial stability, personal data protection, and cybersecurity.In parallel, central banks need to increase monetary policy effectiveness in the conditions of high inflation, huge balance sheets, and circulation of private digital currencies.Activities to develop core principles and guidance for introduction of CBDC rely on possible positive effects for monetary policy effectiveness, financial inclusion, and anti-money laundering.Technical, financial, political, legal, environmental, and educational factors are significant.Additional attention has to be paid to willingness and readiness of end users for wide application of CBDC.In parallel with technical, financial, and legal aspects, educational activities devoted to CBDC are recommended.