Research on the potential impact of CBDC on China’s monetary policy framework

Abstract

Central Bank Digital Currency（CBDC） has the characteristics of traceability and editability. This article respectively elaborates on these two technical characteristics that are different from traditional currencies, and analyzes their impact on the basic elements of the monetary policy framework, namely the ultimate goal of monetary policy, the anchoring method of intermediary goals, monetary policy tools, and the transmission mechanism of monetary policy. After analysis, the research results show that the traceability and editability of CBDC can respectively improve and improve the basic elements of the monetary policy framework, and optimize our country's monetary policy framework as a whole. It is recommended to legally clarify the subjects and procedures that can access CBDC data and edit CBDC algorithms to ensure that the traceability and editability of CBDC are not abused. At the same time, pay close attention to its impact on various basic elements, and promptly Adjust the proportion of these two features in the implementation of monetary policy so that monetary policy can achieve the desired effect.