Digitalization of monetary circulation. Central bank money versus private money

Abstract

The article discusses the issues of reformatting the existing international monetary system (IMS) by highlighting digital assets and, frst of all, the digital currency of the central bank (CBDC). In the medium term, the prevailing trend is the implementation of the scenario of the dominance of the CBDC in relation to cryptocurrencies as likely representatives of the class of private money, which is explained, frst of all, by the need for the world elites to mobilize state institutions of developed countries in the context of geopolitical shifts taking place in the world. However, the issue of long-term dominance of either centralized or private money is still far from being resolved. As part of the recognition of the leading role of Central Banks, the general idea of the interaction of those two types of assets is that Central Banks should use the technical advances in cryptography to provide a rich and diverse monetary ecosystem. The launch of a pilot program for the introduction of the digital dollar indicates that the movement towards the digital dollar has already become irreversible, and the very introduction of the digital dollar in the near future can be considered as crossing the point of no return to the current IMS.