Digital currency of the central bank as the third form of money of the state

Objective: to consider the digital currency of Central Banks as the third form of money of a state; to identify advantages and disadvantages of this new form of money; to clarify the classification of digital currency of the Central Bank; to analyze the features of infrastructure development of the Central banks fast payments system and private stable coins market; to present the author’s conception of the Bank of Russia digital ruble.Methods: the article uses empirical, historical, logical, country-oriented, comparative and statistical methods of the system approach, which allow studying the possible designs of the Central Bank digital currency in dynamics.Results: the article reveals the macroeconomic factors of the emergence of the Central Bank digital currency; defines the types of classification of the Central Bank digital currency; shows the possible pros and cons of issuing and circulating of the third form of state money; considers the fast payments system and the private stable coins market; clarifies some consequences for monetary and financial stability policy during the transition of the Central Bank to digital currency; shows the advantages and disadvantages of the Central Bank digital currency through the prism of three aspects: the anonymity level, the confidentiality degree and the guaranteed remuneration for market participants; and analyzes the features of the Bank of Russia digital ruble development in the medium term.Scientific novelty: the article shows that the Central Bank digital currency is just the third form of state money, along with cash and non-cash; classification of digital currency has allowed the Central Bank to identify the features of the possible design of digital currency; the prospects and problems of price and financial stability in terms of the circulation of digital currency are considered; an alternative to the Central Banks digital currency is the system of fast payments and private stable coins market; The Bank of Russia should build the digital ruble design on the basic characteristics of the banking system of the Russian Federation (Model D) and the mechanisms combining the technologies of the centralized and distributed ledgers of the Bank of Russia. Practical significance: the main provisions and conclusions of the article can be used to develop a possible design of the digital ruble in the medium term, as well as to clarify the Bank of Russia current target mandates, tools, channels and mechanisms of monetary and financial stability policy, directly related to new trends in the development of both the world economy in general and the Russian economy in particular.

Digital economy, Deflation, Monetary policy, Payment system, Interest rate policy, Financial stability, Financial technologies, Central Bank, Digital currency

1. Грищенко В. Фиатные деньги: аналитическая записка. М.: Банк России, 2019. 21 с.

2. The Future of Money: speech given by Mark Carney, Governor of the Bank of England. To the inaugural Scottish Economics Conference, Edinburgh University, 2 March 2018. URL: www.bankofengland.co.uk/speeches (дата обращения: 25.10.2020).

3. Киселев А. Есть ли будущее у цифровых валют центральных банков?: аналитическая записка. М.: Банк России, 2019. 23 с.

4. Bordo M., Levin A. Central bank digital currency and the future of monetary policy // NBER Working Paper. 2017. № 23711. DOI: https://doi.org/10.3386/w23711

5. Siciliani P. Competition for retail deposits between commercial banks and non-bank operators: a two-sided platform analysis // Bank of England Staff Working Paper. 25 May 2018. № 728.

6. Central Bank Digital Currencies. Report of the Committee on Payments and Market Infrastructures and The Markets Committee // BIS. March, 2018. 28 p.

7. Revisiting Monetary Policy in a Low Inflation Environment. Federal Reserve Bank of Boston. 2010. URL: https://www. bostonfed.org/news-and-events/events/economic-research-conference-series/revisiting-monetary-policy-in-a-low-inflation- environment.aspx (дата обращения: 19.11.2020).

8. Андрюшин С. А., Кузнецова В. В. Центральные банки в мировой экономике: учебное пособие. М.: Альфа-М: ИНФРА-М, 2012. 319 с.

9. Hilsenrath J. Fed Chief Gets to Apply Lessons of Japan’s History // The Wall Street Journal. 2010. Oct. 13.

10. Bernanke B. S. Monetary Policy Objectives and Tools in a Low-Inflation Environment // Revisiting Monetary Policy in a Low-Inflation Environment conference, Federal Reserve Bank of Boston, Boston, 15 October 2010.

11. Бурлачков В. К. Отрицательные процентные ставки как следствие трансформации денежного механизма современной экономики: обзор литературы // Финансы и кредит. 2020. Т. 26, вып. 4. С. 856-873. DOI: https://doi.org/10.24891/fc.26.4.856

12. Банк России. Обзор реализации глобальной реформы финансовых индикаторов и использования LIBOR/EURIBOR на российском рынке (по итогам первого полугодия 2020 года). М.: Банк России, 2020. 15 с.

13. Андрюшин С. А. Деньги - творение государства или рынка? (О «современной денежной теории», изложенной в учебнике У. Митчелла, Л. Р. Рея и М. Уоттса «Макроэкономика») // Вопросы экономики. 2020. № 6. С. 121-134. DOI: https://doi.org/10.32609/0042-8736-2020-6-121-134

14. Central Bank Digital Currency. Opportunities, challenges and design // Discussion Paper. Bank of England. March 2020. P. 14.

15. Barontini C., Holden H. Proceeding with caution - a survey on central bank digital currencies // BIS Paper. 2019. № 101.

16. Синельникова-Мурылева Е. В. Цифровые валюты центральных банков: потенциальные риски и выгоды // Вопросы экономики. 2020. № 4. С. 147-159. DOI: https://doi.org/10.32609/0042-8736-2020-4-147-159

17. Impending arrival - a sequel to the survey on central bank digital currency / C. Boar, H. Holden, A. Wadsworth // BIS Papers. 2020. № 107. 15 p.

18. Panetta F. On the edge of a new frontier: European payments in the digital age. Speech. ECB. Frankfurt am Main, 22 October 2020. URL: https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp201022~d66111be97.en.html (дата обращения: 26.10.2020).

19. Covid-19, cash, and the future of payments / R. Auer, G. Cornelli, J. Frost // BIS Bulletin. 2020. № 3. April. 7 p.

20. Rise of the central bank digital currencies: drivers, approaches and technologies / R. Auer, G. Cornelli, J. Frost // BIS Working Papers. 2020. № 880. August. 44 p.

21. Кочергин Д. А. Электронные деньги: учебное пособие. М.: Маркет ДС; ЦИПСиР, 2011. 422 c.

22. Андрюшин С. А. Денежно-кредитные системы: от истоков до криптовалюты. М.: ООО «Сам Полиграфист», 2019. 452 с.

23. Berentsen A., Schär F. The Case for Central Bank Electronic Money and the Non-case for Central Bank Cryptocurrencies // Federal Reserve Bank of St. Louis Review. Second Quarter. 2018. Vol. 100, № 2.

24. Bindseil U. Central bank digital currency - financial system implications and control 30 July 2019. 39 p. URL: https://ssrn. com/abstract=3385283 (дата обращения: 28.10.2020).

25. Barrdear J., Kumhof M. The macroeconomics of central bank issued digital currencies // Bank of England. Staff Working Paper. 2016. № 605. 90 p.

26. Friedman M. A Program for Monetary Stability. N.Y.: Fordham University Press, 1959.

27. Should Inequality Factor into Central Banks' Decisions? / N.-J. H. Hansen, A. Lin, R. C. Mano // IMF Working Paper. 2020. № 196. September. 39 p.

28. Goodfriend M. The Case for Unencumbering Interest Rate Policy at the Zero Bound. 2016. Federal Reserve Bank of Kansas City Economic Symposium in Jackson Hole. August 26. P. 127-160.

29. Kimball M., Agarwal R. Breaking Through the Zero Lower Bound // Working Paper. 2015. № 15/224.

30. Rogoff К. The Curse of Cash. Princeton, 2016. 296 p.

31. Dyson B., Hodgson G. Digital cash: why central banks should start issuing electronic money // Positive Money. 2016. 36 p.

32. Broadbent B. Central banks and digital currencies (speech). Bank of England, 2016. URL: https://www.bankofengland. co.uk/speech/2016/central-banks-and-digital-currencies (дата обращения: 11.01.2021).

33. Broadening narrow money: monetary policy with a central bank digital currency / J. Meaning, B. Dyson, J. Barker, E. Clayton // Staff Working Paper. 2018. № 724. May. P. 12.

34. Бурлачков В. К. Денежные механизмы глобальной и национальных экономик. М.: ЛЕНАНД, 2019. 256 с.

35. Engert W., Fung B. C. Central Bank Digital Currency: Motivations and Implications // Bank of Canada. Staff Discussion Paper. 2017. № 16. November. Pp. 17-18.

36. Обзор мирового опыта использования систем быстрых платежей и предложения по внедрению в России. М.: Банк России, 2017. 16 c.

37. Шнайер Б. Прикладная криптография. Протоколы, алгоритмы и исходные коды на языке С. М.; СПб.; Киев, 2017. 1040 c.

38. In search for stability in crypto-assets: are stablecoins the solution? / D. Bullmann, J. Klemm, A. Pinna // Occasional Paper Series. ECB. August 2019. № 230. 54 p.

39. Stablecoins - An overview of the current state of stablecoins // Blockdata. 2019, June.

40. Investigating the Impact of Global Stablecoins // G7 Working Group on Stablecoins. October 2019. 31 p.

41. Addressing the regulatory, supervisory and oversight challenges raised by “global stablecoin” arrangements: consultative document // Financial Stability Board. April, 2020.

42. Stablecoins: Implications for monetary policy, financial stability, market infrastructure and payments, and banking supervision in the euro area // ECB Occasional Paper Series. September 2020. № 247. 37 p.

43. Цифровой рубль. Доклад для общественных консультаций. М.: Банк России, 2020. 48 c.

44. Андрюшин С. А. Закон «О цифровых финансовых активах»: начало положено // Банковское дело. 2020. № 8. С. 8-12.

45. Huber J. Plain money: a proposal for supplying the nations with the necessary means in a modern monetary system. Der Hallesche Graureiher 99-3. Revised version. October. 1999. 60 р.

46. Pollock Alex J. Testimony to the Subcommittee on Monetary Policy and Trade of the Committee on Financial Services. United States, 2018.

47. Яковлев А. И. Теория денег: от золота к криптосистеме обмена. СПб.: Печатный цех, 2018. 207 c.