A Macroeconomic Model of Central Bank Digital Currency

We thank Joseph Abadi, Katrin Assenmacher, Rhys Bidder, Markus Brunnermeier, Thomas Fischer, Pengfei Jia, Todd Keister, Ashley Lannquist, Elia Moracci, Emi Nakamura, Dirk Niepelt, Anna Orlik, Daniel Sanches, Sanjay Singh, and Jon Steinsson for useful comments and suggestions. The authors are also grateful for comments by seminar and conference participants at the NBER Summer Institute, the Chicago Booth Treasury Markets conference, the AFA meetings, the University of Rochester Simon Business School, UC Davis, ECB, CEPR Fintech and Digital Currencies Conference, FRB Philadelphia, Bank of England, Danmarks Nationalbank, King’s College London, SED Barcelona, Fed Macro & Financial Institutions System Meetings, Banca d’Italia, the Bundesbank Conference on Markets and Intermediaries, the Second Knut Wicksell Conference on Crypto and Fintech, HEC Lausanne, Goethe University Frankfurt, Bayes Business School, Queen Mary University, Santa Clara University, and Humboldt University Berlin. We thank Caroline Paulson for excellent research assistance. Any views expressed herein are solely those of the authors and do not necessarily represent the views of the Federal Reserve Bank of San Francisco, the Federal Reserve System, or the National Bureau of Economic Research.

• June 24, 2025