Analysis the Effect of Issuing CBDC on Monetary Policy Effectiveness in USA and Egypt

Abstract

There are many countries issued central bank digital currencies CBDCs, and the rest of the world studying and investigating how to issue CBDC to avoid negative effect and enhance the positive effect of issuing its.

Monetary policy effectiveness means the ability of central banks to achieve its objectives (stability of prices and increase GDP growth rate) by using its tools (interest rate, and all tools that effect on money supply) effectively.

The CBDC is one of the components of money supply, so CBDC effects on monetary policy effectiveness, but from previous studies for this relationship, we founded that CBDC erode the monetary policy effectiveness and enhance financial inclusion. And this result different from Egypt to USA, USA is a leader and pioneer in all fields forever, but Egypt is emerging economy, both country studying and investigating how they can issue CBDC, so the result will depends on how every country will issues CBDC.

Keywords: CBDC, monetary policy effectiveness, potential issue of CBDC in Egypt and in USA.

DOI: 10.7176/JESD/17-3-02

Publication date: April 30^th 2026