THE FUTURE OF CENTRAL BANK DIGITAL CURRENCY IN THE EUROPEAN UNION AND HUNGARY
As of May 2024, 134 central banks representing 98% of the world’s GDP (Atlantic Council, 2024) were already exploring the possibility of introducing central bank digital currency. The study analyses the definition of central bank digital currency, the risks involved in its introduction, and the legislative environment for its introduction in the European Union. The study also reviews the possibility of introducing central bank digital currency in the case of Hungary, an EU Member State outside the European Monetary Union, with a particular focus on the monetary policy implications. The author concludes that membership of the European Monetary Union does not materially affect the decision to introduce central bank digital currency.
Keywords: CBDC, fiat money, DLT, monetary policy
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