The impact of cryptocurrencies on monetary policy

Abstract

This study overviews the traits of monetary policy that could have been set by financial institutions over widely spreading crypto assets. As conclusion, because of the deflationary setting of the CBDC’s, the inflation rate should be fitting to avoid disruption. Moreover, issuing CBDC’s would weaken the central banks’ authority on open markets operations and government bonds. Also, redemption price would turn useless due to the decline in the effective money income.