DISCUSSION PAPER_No.5(17-003) “The Impact of Central Bank Digital Currency: From a Functional Perspective”


“The Impact of Central Bank Digital Currency: From a Functional Perspective”

Soichiro Takagi(Associate Professor, Center for Global Communications, International University of Japan)


There is growing attention on “Blockchain” as part of a key technological revolution to change a wide spectrum of the economy and business. Blockchain, also known as a “Distributed Ledger”, was initially created as a platform technology to enable Bitcoin. Bitcoin and similar digital currencies are issued and maintained by anonymous participants around the world. However, as a reaction to digital currency in the private sector such as Bitcoin, there is a growing concern among central banks about their own issuance of digital currency. Central banks in countries such as the United Kingdom, Sweden, Canada, and Cambodia are studying digital currency which is issued by central banks. If certain central banks issue their own digital currencies based on the blockchain technology, this would have a wide impact on national and world economies and their financial systems. The purpose of this paper is to provide a comprehensive set of topics and points to discuss Central Bank Digital Currency (CBDC) by providing the technological and functional features of blockchain technology and its potential impact on the economy and society regarding the implementation of CBDC.


Central Bank Digital Currency, Bitcoin, Blockchain, Function, Financial System

May 2017

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