MONETARY POLICY, CENTRAL BANK DIGITAL CURRENCY: A STUDY IN VIETNAM
Various forms of digital currencies are garnering attention from governments and the public due to their high-security potential, at least in theory. However, the widespread application of digital currencies in payments can pose potential threats such as fraud and cybersecurity risks, as well as a loss of control over a nation's financial and monetary stability. Therefore, Central Bank Digital Currencies (CBDCs) have been introduced to address the shortcomings of physical fiat currency and cryptocurrencies. Utilizing a research synthesis approach with the compilation of real-world events, this study aims to discuss the benefits and risks associated with digital currencies and the issues arising from physical fiat currency and circulating cryptocurrencies in the economy. It presents some potential advantages of CBDCs issued by central banks, analyzes monetary policies in the world of widely adopted CBDCs, and provides a reference CBDC design to bring economic benefits.
CBDC, Monetary Policy, Financial Stability, Payment System.