The CBDC ledger may be on either a private or a public network. Digital currencies can use either, or a combination of the two, as detailed in our ‘The Technology behind CBDCs’ blog. Private networks Private networks, where data is only accessible by a controlled audience, are often associated with more anonymity, privacy, and control …
Instrument CBDCs are designed to be used by every kind of stakeholder in an economy, as with cash. But we can broadly categorise the types of payments that would typically be made with a CBDC into: • Retail (households and businesses) • Wholesale (banks, financial institutions, payment providers) What is a retail CBDC? Retail CBDCs …
Account vs token-based, which is the right authentication method for CBDC for you? The difference between an account-based or token-based approach of CBDC may be technical, but it has significant implications for identity and access management, cost, and design. Put simply, the former means the system is made up of accounts that each have …
There is no one-size-fits-all CBDC, and each will inevitably reflect the unique economic, structural, and technical needs of the country in which they are implemented. Governments wishing to implement digital currency solutions will have to make a number of considerations, not least of all the extent to which a CBDC replaces cash. At minimum, CBDC …
There are several challenges associated with implementing a CBDC. Digital currencies remain in an early phase, and more research and experimentation are required to provide the necessary understanding of their possible economic and social impact. Nonetheless, our analysis finds the case for central bank-issued digital currencies to be compelling, especially given the many flaws with …