Money and Central Bank Digital Currency

This paper takes an overview of the concepts and features of central bank money and private sector money and focuses on the actual performance of these types of money in selected advanced and emerging economies. In addition, digital coins (crypto assets), such as bitcoin, are newly emerged private sector money. Much attention has been given to digital coins because the underlying distributed ledge technology (DLT) enables a decentralized verification process while maintaining features similar to cash. Some central banks have expressed unease about these digital coins because of the high volatility in their values. However, the size of the newly emerged private sector money currently remains limited due to its limited use as a payment tool.