Central Bank Digital Currency—Political Risks and the Implications for International Trade

Most central banks have started work on the introduction of central bank digital currencies (CBDCs). CBDCs might however be seen as one of the possible tools in the international competition between global trade leaders. This means that the political risks connected with the implementation of CBDCs grow in importance since political issues associated with the CBDCs’ implementation will impact the efficiency of CBDCs usage in the international trade context. At the same time, central banks endorse CBDC as a purely economic project, whose goal is to provide the digital equivalent of cash increasing financial inclusion and the efficacy of the financial system and economy. This contrast highlights the necessity to assess the political opportunities (and their importance) of CBDCs, also from the point of view of global trade. The chapter aims to show the political potential of CBDCs. For that purpose, the most important political opportunities and dangers that relate to CBDCs are presented. The results of the survey are then analyzed in the context of real political risks of CBDCs’ implementation and their significance for international trade.