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.

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.

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.

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

“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

Our Approach

A private, permissioned CBDC on a public ledger.

With our solution, each CBDC is created within its own permissioned environment where the central bank retains its role of issuer. The central bank maintains control of issuance, circulation and distribution of a nation’s currency.

Our approach provides flexibility in the way users can interact with the CBDC, either directly or indirectly through intermediaries.

The CBDC itself is secured and processed on a global, scalable public ledger. This ensures our solution is immutable, provides privacy controls and is interoperable. We also have a network of partners globally who can provide country-specific support and extra services where needed.

Benefits to your economy

We work with financial institutions and governments to 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.

Tuvalu Embarks on World’s First National Digital Ledger and Infrastructure Project on Bitcoin

The island nation joins forces with nChain, Elas Digital, and Faiā to embark on a digital transformation project that includes creating a national digital ledger and registry using blockchain technology.

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.

Sector Specific Cashback Through CBDC

In a recently published paper, titled 'Cashbacks falling from the sky: Can retail CBDC rollout widen central banks’ toolkit?', nChain Researcher Dr Vlad Skovorodov and former nChain Researcher Dr Zamid Aligishiev examine the feasibility of electronic cashback and varying cashback rates as facilitated by a potential retail central bank digital currency (CBDC) to enhance the economic toolkit for targeting inflation rates.

Our Partners
RTCore was designed to overcome the burden of batch-driven data-processing software and technologies by providing real-time transaction.
Domineum Blockchain Solutions is a Distributed Ledger Technology Company providing Blockchain-as -a service solution.
Contact our CBDC Experts

Get in touch with our team of experts today, and get help with CBDC in your jurisdiction.

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