Central bank digital currency in an open economy

•We examine the open-economy implications of the introduction of a central bank digital currency (CBDC).•We analyze the international transmission of standard monetary policy and technology shocks in the presence and absence of a CDBC.•The presence of a CBDC amplifies the international spill-overs of shocks to a significant extent.•The magnitude of these effects depends crucially on CBDC design•Domestic issuance of a CBDC increases asymmetries in the international monetary system.