The Potential Impact of Issuing CBDC in USA on Interest Rate

Abstract

The relationship between central bank digital currencies (CBDC), and interest rate in tow ways. But we focus our analysis on one direction of potential impacts from CBDC to interest rate in USA to help police maker in take a wright decision for issue CBDC or not in one hand, and control on determining of interest rate in the future on the other hand. This paper found that the potential effects of CBDC on interest rate depend on how many the total amount of expected issue of CBDC and the relative size of this currency in M1, and the potential impact of it on the current and saving deposits on traditional paper money. The potential issue of CBDC will increase the effectiveness of monetary polices in controlling in money supply, which effect directly on interest rate.

Keywords: Central Banke Digital Currencies (CBDC), interest rate in USA, and deposit of traditional money.

DOI: 10.7176/JESD/17-3-06

Publication date: May 30^th 2026