Design choices of a CBDC

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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 must record transactions, which represent central bank liabilities, on a ledger.

CBDC functionality & design choices

More sophisticated functionality will depend on the issuing country’s needs but may include, CBDC wallets, custody and exchange systems, national identity systems, monetary policy tools to affect CBDC interest and limits, product and service registers for managing real-time taxation at source and much more.

Some key design choices are:

We give a more detailed overview in each of our blogs, but our analysis finds that a government-issued and controlled private permissioned CBDC running on a public network – the blockchain – is by far the most secure, scalable, and efficient model for both retail and wholesale applications.

At nChain, we are working with central banks to research and design a truly more resilient, trusted and inclusive modern economy, securing the livelihoods and prosperity of citizens for generations to come.

Interested to learn more about CBDCs? Download the Playbook or sign up to be the first to know about our CBDC Masterclass below.

CBDC Playbook


This 40-page comprehensive guide will help you understand how CBDC programmes can be designed and implemented, and some of the key questions that need to be addressed to help ensure a successful CBDC implementation.

CBDC Masterclass Series


The nChain CBDC Tech Masterclass Series aims to provide both foundational principles, expert opinion and lively discussion around the technical considerations of CBDC and creating a more resilient payments system for all.