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 …
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 …