The Impact of Central Bank Currency on Cross-border Payment

Han, Xu (2022) The Impact of Central Bank Currency on Cross-border Payment. MA/MSc, Lámfalussy Sándor Közgazdaságtudományi Kar (volt Közgazdaságtudományi Kar).

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Absztrakt (kivonat)

With the acceleration of the global digitization process, the attitude of central banks around the world towards central bank digital currency has changed, and most countries have accelerated the speed of the research and development on central bank digital currency. Compared with traditional currencies (cash and deposit), CBDC can greatly improve payment efficiency and reduce costs due to its digital characteristic. Using distributed ledger technology, combined with electronic wallets, smart contracts and other tools, CBDC can realize payment even without network, greatly improving financial inclusiveness. Because distributed ledger technology can update transaction information in real-time and accurately, which achieves transaction traceability. It is of great significance to prevent money laundering, tax evasion, and terrorism financing. At present, 86% of the started CBDC research and development, some countries such as Denmark, do not have the need to issue CBDC due to national conditions. There are several problems in the traditional cross-border payment system. For example, cross-border payment relies heavily on intermediary banks, resulting in low efficiency and high cost. The application of CBDC can effectively solve the above problems, especially improving the efficiency of cross-border payments has become the main motivation for countries to research and develop CBDC. The thesis focuses on three projects that using CBDC on cross-border payment, including the Inthanon-Lionrock project carried out by the central banks of Hong Kong and Thailand, the Aber project carried out by Saudi Central Bank (SAMA) and Central Bank of the UAE (CBUAE), and stella project by European Central Bank (ECB) and the Bank of Japan (BOJ). This article discusses the opportunities and challenges brought by the application of CBDC in cross-border payments. First, the application of CBDC reduces the friction of traditional cross-border payments and greatly improves cross-border efficiency. In addition, the issuance of CBDC can strengthen the international competitiveness of their national currencies, which is a way for some countries to get rid of the control of the dollar. It is of great significance for the establishment of a fair and stable international monetary system. At the same time, the cross-border payment of CBDC also brings some challenges to financial stability. First, the lack of relevant legislation in various countries makes the cross-border payment of CBDC lack supervision. The large flow of funds caused by CBDC raises capital flow risks. In addition, for some countries, it is easy to cause the risk of currency substitution. In general, the advantages of CBDC for cross-border payments outweigh the disadvantages, and each country should carry out research and issuance of CBDC under the condition of ensuring their own financial stability to improve international competitiveness

Angol cím

The Impact of Central Bank Currency on Cross-border Payment

Intézmény

Soproni Egyetem

Kar

Lámfalussy Sándor Közgazdaságtudományi Kar (volt Közgazdaságtudományi Kar)

Tanszékcsoport/intézet

x - ARCHIV KTK - Nemzetközi és Regionális Gazdaságtani Intézet (megszűnt: 2021.06.30.)

Szak

LKK - Nemzetközi gazdaság és gazdálkodás mesterszak (MA)

Témavezető(k)

Helyi kari azonosító

KMAN-22/02

Mű típusa:	Diplomadolgozat (MA/MSc)
Felhasználói azonosító szám (ID):	Xu Han
Dátum:	09 Szep 2022 12:07
Utolsó módosítás:	22 Szep 2023 08:41
URI:	http://diploma.uni-sopron.hu/id/eprint/9041

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