Central Bank Digital Currencies: Conceptual Framework and Essential Legal Reforms for Regulation

Abstract

The digitalization of the global economy is compelling central banks to position themselves as integral actors within the emerging digital paradigm . In response to rapid technological advancements, central banks are seeking to leverage innovative technologies to fulfil their public mandates and to contribute to the stability and sound development of the financial system. Within this context, the issuance of central bank digital currencies (CBDCs) has emerged as a major area of focus. CBDCs may be regarded as an innovative instrument designed to preserve monetary sovereignty and to reinforce the role of central banks throughout the digital transformation process. While central banks are working to establish the necessary technical and administrative infrastructure for CBDC issuance, they are simultaneously developing the corresponding regulatory frameworks. The regulation of CBDCs constitutes a complex and multidisciplinary field requiring comprehensive legal and technical analysis, encompassing multiple branches of law. This article provides a brief overview of CBDCs and outlines the principal legal steps considered necessary for their regulation.