By issuing central bank digital currencies (CBDCs), central banks will aim to improve the current two-tier payment system. The policy goals include payments inclusion and efficiency, as well as safeguarding competition, data privacy and payment system integrity. In this way, CBDCs respond to the digitalization of the economy and the key role of data in the monetary system.
Regarding the macroeconomic implications of CBDCs, the literature focuses on three main themes: the effects of CBDC issuance on bank lending, their implications for financial stability, and their use as a new monetary policy tool.
Important questions remain open on CBDCs and cross-border payments, areas in which policy development is moving beyond the research stage. Here, research insights could inform the design and international coordination of CBDC projects. The challenges include understanding the international implications of CBDC issuance for issuing and receiving countries, and how CBDCs might improve cross-border payments and help to integrate (digital) economies.