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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.82, # 2, 2025, pp. 96-116

2. Heterogeneous agents and distributional effects. Introduce heterogeneity in
liquidity needs, financial inclusion, and access to cross-border instruments to
assess who benefits or loses from different SDC regimes.
3. Empirical calibration and structural estimation. Calibrate the model to
country-specific data (deposit elasticities, bank funding mixes, capital-flow
sensitivities) to quantify welfare trade-offs and identify country-level optimal
designs.
4. Cross-border SDC spillovers and international coordination. Endogenize
cross-jurisdictional use of SDCs (if allowed) to study contagion, exchange-
rate pass-through, and the need for multilateral coordination or capital-flow
management.
5. Fintech intermediaries and private digital money. Add competing private
intermediaries (wallet providers, stablecoins) to evaluate competitive and
regulatory responses and to study layered intermediation outcomes.
6. Political economy and institutional capacity. Explore how fiscal
considerations, central-bank balance-sheet constraints, and institutional
credibility shape feasible recycling strategies and long-run adoption paths.

REFERENCES

Andolfatto, D. (2021) ‘On the necessity and desirability of a central bank digital
currency’, in Niepelt, D. (ed.) Central Bank Digital Currency: Considerations,
Projects, Outlook. CEPR Press.

Auer, R., Boar, C. & Frost, J. (2020) ‘CBDC: Beyond Borders’, BIS Bulletin / policy
note.

Bank for International Settlements (BIS) (2021) ‘Central bank digital currencies:
motives, economic implications and the research frontier’, BIS Working Paper No.
976. Available at: https://www.bis.org/publ/work976.pdf

Bank of Canada / Staff (2021) ‘Predicting the Demand for Central Bank Digital
Currency’, Bank of Canada Staff Working Paper 2021-65. Available at:
https://www.bankofcanada.ca/2021/12/staff-working-paper-2021-65/

Barrdear, J. & Kumhof, M. (2016) ‘The macroeconomics of central bank-issued
digital currencies’, Bank of England Working Paper (2016).

Burlon, L., Muñoz, M.A. & Smets, F. (2024) ‘The optimal quantity of CBDC in a
bank-based economy’, American Economic Journal: Macroeconomics, 16(4), pp.
172–217.

Diamond, D.W. & Dybvig, P.H. (1983) ‘Bank Runs, Deposit Insurance, and
Liquidity’, Journal of Political Economy, 91(3), pp. 401–419. Available at:
https://www.bu.edu/econ/files/2012/01/DD83jpe.pdf

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