Research of the development of Green Central Bank Digital Currency, CBDC

Abstract

The idea of a green central bank digital currency (CBDC) has been mentioned by some institutions such as the Congress of the United States and private companies, but it has not been explained. It is intuitive that this concept refers to a way of issuing or using CBDCs by taking the environment into con- sideration. In this research, it is explored a way that this could work by limiting the CBDC issuance to the total renewable energy production. The paper shows a list of the 40 countries that produce the most renewable energy and compares it with a well-established economic standard, the Total Reserves of Central Banks. For 2018, it was found a correlation among the percentage of the total energy that is produced with green sources and the percentage that could be backed by international reserves if it were the same thing. This correlation is presented as a pa- tron that can be use by Central Banks in order to take environment in to consideration and to calculate how much of a CBDC can be issued by central banks as a standard.