Central bank digital currencies: An agenda for future research

Central bank digital currencies are engendering concern. As understanding of CBDCs is very limited, further research is warranted which will focus not only on the economic rationale of CBDCs but also on how they will impact monetary policy transmission, financial and price stability, inflation targeting, unconventional monetary instruments, central banks as lenders of last resort, and provision of forward guidance. There are also unsettled questions regarding ethics, privacy and environmental and technological constraints. With the imminent implementation of CBDCs, it is vital to explore these issues.