A Conceptual Model For a Decentralized Central Bank Digital Currency

This paper develops a conceptual model for a decentralized central bank digital currency (CBDC) controlled by many central banks. A decentralized CBDC could potentially explore the advantages of digital technologies more deeply than centralized ones by making macro-fundamental reconciliations between economies. Furthermore, this concept could also potentially provide international liquidity for all (member) countries in the world sustainably, align macro-fundamental or eliminate global imbalances, and makes the international monetary system naturally more stable. A decentralized CBDC is a new kind of CBDC. This paper focuses on discussing the conceptual model and theoretical framework of how this system works in providing international liquidity and making the system balanced and stable.