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Wholesale central bank digital currency – the safe way to debt capital market efficiency


Title: Wholesale central bank digital currency – the safe way to debt capital market efficiency

Download PDF: Discussion Paper 22

Authors: Josselin Hebert (ESM), Edmund Moshammer (ESM), Herbert Barth.



In this paper we analyse the usefulness of digital currencies for wholesale financial transactions in Europe. Currently, several risks impede any broad adoption of distributed ledger technology, but this sovereign debt issuance case study demonstrates the potential widespread efficiency gains from smart contracts run on distributed ledger technology. A wholesale central bank digital currency on a private permissioned blockchain could overcome existing risks and impediments and lead to significant efficiency gains in the financial system across debt capital markets. 

Disclaimer: The views expressed in this discussion paper are those of the authors and do not necessarily represent those of the ESM or ESM policy. No responsibility or liability is accepted by the ESM in relation to the accuracy or completeness of the information, including any data sets, presented in this paper.

Source: European Stability Mechanism | Discussion Paper Series | Volume 2022 no. 22 | March 2023 | 48 Pages

Copyright © European Stability Mechanism, 2023| All rights reserved. Any reproduction, publication and reprint in the form of a different publication, whether printed or produced electronically, in whole or in part, is permitted only with the explicit written authorisation of the European Stability Mechanism.



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