“…Lastly, we contribute to the growing literature on cryptoeconomics that analyzes the price and exchange rate implications of crypto mining (Choi and Rocheteau, 2020;Garratt and van Oordt, 2019;Huberman et al, 2017;Prat and Walter, 2018), the micro and macroeconomics of blockchain (Amoussou-Guenou et al, 2019;Biais et al, 2019a,b;Ebrahimi et al, 2019;Leshno and Strack, 2020;Saleh, 2020) and token issuance (Cong et al, 2020;Li and Mann, 2020;Prat et al, 2019), and the macroeconomic implications of cryptocurrencies via currency competition (Benigno, 2019;Benigno et al, 2019;Fernández-Villaverde and Sanches, 2019;Schilling and Uhlig, 2019). Our paper abstracts from the existence of competing digital currencies and assumes full functionality of the CBDC account and ledger system.…”