Agur, Itai; Ari, Anil; Dell'Ariccia, Giovanni - 2019
We study the optimal design of a central bank digital currency (CBDC) in an environment where agents sort into cash …, CBDC, and bank deposits according to their preferences over anonymity and security; and where network effects make the … convenience of a payment instrument depend on the number of its users. A CBDC can be designed with attributes similar to cash or …