Nineteenth International Conference on Environmental, Cultural, Economic & Social Sustainability

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 minting or using CBDCs by taking the environment into consideration. In this research, a way that this could work is explored it by limiting the CBDC minting 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 patron 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.