Launching a CBDC must follow a clear process, involve multiple stakeholders, and consider the wider social, political, economic, and structural context. The Bank for International Settlements outlines the following factors, based mainly on data from the World Bank: • Digital infrastructure, such as mobile phone and internet use, is developed • Capacity for innovation (R&D) …
There are many reasons why a central bank would adopt a CBDC. Not least because they allow functionality not possible with physical cash, such as real-time monitoring, auditability, automatic taxation and the ability to immediately transmit interest rates through returns [1] Key benefits of a CBDC Creating a centralised, digital currency can provide many benefits that …
The Bank of International Settlements gives three foundational principles for central banks considering whether to issue CBDC, that flow from their common mandates for monetary and financial stability. Do no harm CBDC should continue to fulfil public policy objectives and not interfere with or impede a central bank’s ability to carry out its mandate for …
6 core principles for Central Banks when considering a CBDC Read More »
A Central Bank Digital Currency is an innovative, digital form of national money issued by a central bank that individuals and businesses can use to trade and make payments. It is different from a reserve, a bank deposit, and physical cash. History of cash Historically, central banks have provided notes and coins to the public …
The concept of time is central to blockchain technology. Satoshi’s white paper devotes a whole chapter to explaining how each block of transactions is chronologically ordered and why that matters for provability. In this third article in our Bitcoin Building Blocks series, we look at Bitcoin’s block structure, the ‘newspaper’ analogy, and how businesses can benefit from compliance and auditing features inherent to the system’s design.