CBDC-implementation – the true price

Abstract

The manuscript examines the economic, institutional, and societal implications of implementing central bank digital currencies (CBDCs), with a particular focus on the European context. The study critically analyses the motivations behind the introduction of national digital currencies and evaluates whether CBDCs are capable of solving existing problems in payment systems, financial inclusion, and monetary sovereignty. Special attention is paid to the true price of CBDC implementation, which is interpreted not only as direct financial costs but also as indirect economic, social, and political consequences. Using a mixed-method research approach that combines a systematic literature review, comparative analysis of international pilot projects, and assessment of empirical data from central banks and international financial institutions, the paper identifies key risks associated with CBDCs. These include threats to financial stability, increased cyber and operational risks, loss of transaction anonymity, potential erosion of the traditional banking sector, and negative spillovers for innovation ecosystems and labour markets. The study also highlights the specific challenges of implementing CBDCs in a multi-country monetary union, where differences in economic structures, regulatory frameworks, and user behaviour may amplify systemic risks. The findings suggest that, under current technological and regulatory conditions, CBDCs do not offer clear advantages over existing or alternative digital payment solutions, such as private-sector FinTech innovations or stablecoin-based instruments. The manuscript concludes that a premature or forced transition to CBDCs may generate more costs than benefits and recommends a cautious, phased approach that preserves cash circulation, supports private innovation, and prioritises cybersecurity, financial literacy, and human-centric policy design.