Open Markets Under Pressure

This chapter discusses how digital technology can unfold specific effects on money and monetary systems. It focuses on the money functions and on aspects of currency competition. It endeavours to differentiate the specific effects of digitalisation that may lead to inflation. It briefly outlines the emergence of the phenomenon known as “digital currencies” and deals with the extent to which these pose a threat to the stability of central bank money. It discusses central bank digital currencies and their potential impact on monetary systems.