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Topic outline

  • Unit 7: Cryptocurrencies, Stablecoins, and Central Bank Digital Currencies

    This unit introduces Central Bank Digital Currencies (CBDCs). As central banks begin to launch CBDC pilots, this unit hypothesizes their potential place in a future monetary system. It specifically looks at CBDC development in China, Europe, and the US. This unit will also place Bitcoin, digital assets, and CBDCs in the context of each other. It discusses how atomic swaps and jurisdictional arbitrage might shift the monetary landscape.

    Completing this unit should take you approximately 1 hour.

    • Upon successful completion of this unit, you will be able to:

      • outline the goals and functions of stablecoins and alternative cryptocurrencies;
      • identify the origin of central bank digital currencies (CBDCs);
      • distinguish between retail and wholesale CBDCs; and
      • predict how Bitcoin, cryptocurrencies, stablecoins, and CBDCs may change the international monetary system.
    • 7.1: Alternative Cryptocurrencies, Stablecoins, and CBDCs

      This subunit explains the origin of alternative cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs) as a second layer of money alongside other central bank liabilities. It explains the differences between wholesale CBDCs and retail CBDCs, and how each might affect the monetary system. It looks at the ECB's digital euro, China's digital renminbi, and the Federal Reserve's digital dollar projects.

    • 7.2: The Potential Future of the Monetary System

      This subunit explores Bitcoin, CBDCs, and stablecoins, and their potential role in the future of monetary systems.

      • Read this section about the potential effects of Bitcoin, cryptocurrencies, stablecoins, and CBDCs on the international monetary system.

      • 7.3 Supplemental Information

        • In this video, Niall Ferguson explores the history and evolution of money to demonstrate its mechanics and how it has shaped the world.

        • Watch this conversation with Michael Saylor, Chairman & CEO of MicroStrategy, about Bitcoin, inflation, and the future of money, information, and energy.

    • Unit 7 Review and Assessment

      • This video walks through the major topics we covered in Unit 7. As you watch, consider the place that Bitcoin, digital assets, and CBDCs have in the context of each other.

      • Take this assessment to see how well you understood this unit.

        • This assessment does not count towards your grade. It is just for practice!
        • You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
        • You can take this assessment as many times as you want, whenever you want.