Central Bank Digital Currency

Deliver a more efficient, resilient and diverse payments system

What is Central Bank Digital Currency?

Simply put: it is a digital form of central bank money that can operate alongside existing physical cash to provide improved financial access and security to all citizens.

Central banks provide trusted money to the public as part of their policy objectives. This money acts as a medium of exchange, a unity of account and a store of value. Historically, this has been accomplished by issuing physical cash.

With the use of blockchain technology, central banks can address the declining use of physical cash and the increase in new forms of private money with a centrally issued CBDC that is a better fit for the modern, digital era.

“At nChain we believe that everyone should have access to their money no matter where in the world they are. We want to work with Governments and Central Banks to create a digital form of central bank currency for the betterment of humanity.”

Hakan Yuksel
CEO, nChain
Overview

Retail CBDC​

Central banks can issue a digital form of central bank money to complement the existing notes and coins they provide. A general-purpose, or a retail CBDC, provides a complementary means of payment for the public, alongside physical cash.

It also supports a more efficient, resilient and diverse domestic payments system.

Wholesale CBDC​

Central banks can improve efficiency and security within interbank clearing and settlement, while addressing issues of counterparty credit risk and liquidity.

Wholesale CBDC can enable a financial future not possible with physical cash or incumbent electronic payment systems.

Use cases for wholesale CBDC include:

  • The clearing and settlement of trades originating from digital asset exchanges, including tokenised assets and commodities.
  • Delivering the next generation of real-time gross settlement systems (RTGS) and deferred net settlement systems (DNSS).
  • Enhancing cross-border payments while unlocking new ways to make and use payments.
Our Approach​

A private permissioned CBDC on a public ledger

Digital cash is a peer-to-peer payment platform that facilitates faster and cheaper cash payments, eliminating the need for an intermediary to facilitate payments. We achieve this by providing a token-based solution that allows cash to be held directly by the user without relying on a bank account.

To ensure full control over the use of tokens, our approach places a significant importance in defining the role of an issuer, who will be responsible for controlling and managing digital cash tokens, from issuance, distribution, and monitoring.

The product can be used by central banks to mint and issue retail central bank digital currencies.
Benefits

Strengthen trust in an economy, introduce transparency and accountability, and improve the efficiency of money flows.

Counterfeit-resistant currency

Certify that money in circulation is officially issued and is legal tender through a tamper-proof ledger.

Regulatory-compliant monetary streams

Certify transactions in real-time and eliminate potential theft or fraud while creating an indelible log of all monetary transactions.

Efficient public spending system

Provide citizens with direct access to digital cash whilst preserving privacy and introducing transparency, integrity, and traceability of money.

Blockchain​

Blockchain technology is the perfect partner for CBDC.

With blockchain technology, we can take a holistic approach to payment and data solutions. It allows us to simplify the payment system, increase efficiencies without reducing security.

By embedding data into payments, it allows us to deliver solutions that adhere to compliance and regulatory requirements, and provide central banks with access to more data to facilitate targeted and effective monetary and fiscal polices.

Find out more about our expertise on blockchain infrastructure.
media

CBDC Panel Discussion, Dubai 2022

Central bank digital currencies were the focus of a panel discussion at the BSV Global Blockchain Convention in Dubai 2022.

Watch Simit Naik, Director of Strategy at nChain, and Lexington Blood, president of RTCore Inc discuss the need for CBDCs, their risks and the mitigation measures.

Our Partners​
Domineum

Domineum Blockchain Solutions is a Distributed Ledger Technology Company providing Blockchain-as -a service solution.​

RTCore

RTCore was designed to overcome the burden of batch-driven data-processing software and technologies by providing real-time transaction.​

Contact our CBDC experts

Get in touch with our team of experts today, and get help with central bank digital currency in your jurisdiction.

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