Public Payment Systems in the Digital Era: Responding to the Financial Stability and Security-related Risks of Cryptocurrencies

The digital era is leading to many changes in the payment system landscape, some of which threaten monetary stability and security in developing countries. To ensure that payment systems function as a public good, monetary authorities should carefully consider the implementation of a central bank digital currency. Depending on national capabilities and needs, and the challenges of creating such a currency, authorities could alternatively create a fast retail payment system. Moreover, given the risk of accentuating the digital divide in developing countries, authorities should maintain the issuance and distribution of cash.