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Frost, Jon
, Rochet, Jean-Charles, Shin, Huyn Song and Verdier, Marianne
(2025)
Competing digital monies.
TSE Working Paper, n. 25-1644, Toulouse
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Abstract
We compare three competing digital payment instruments: bank deposits, private stablecoins and central bank digital currencies (CBDCs). A simple theoretical model integrates the theory of two-sided markets and payment economics to assess the benefits of interoperability through a retail fast payment system organised by the central bank. We show an equivalence result between such a fast payment system and a retail CBDC. We find that both can improve financial integration and increase trade volume, but also tend to reduce the market shares of incumbent intermediaries.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | 16 July 2025 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | payments, CBDC, big tech, banks, stablecoins |
| JEL Classification: | E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System E58 - Central Banks and Their Policies G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages L51 - Economics of Regulation O31 - Innovation and Invention - Processes and Incentives |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse Capitole |
| Site: | UT1 |
| Date Deposited: | 23 May 2025 08:23 |
| Last Modified: | 04 Nov 2025 14:59 |
| OAI Identifier: | oai:tse-fr.eu:130555 |
| URI: | https://publications.ut-capitole.fr/id/eprint/50858 |
