{"id":15476,"date":"2020-10-30T13:31:23","date_gmt":"2020-10-30T13:31:23","guid":{"rendered":"http:\/\/bulletins.bfconsulting.com\/?p=15476"},"modified":"2020-10-30T13:31:23","modified_gmt":"2020-10-30T13:31:23","slug":"design-considerations-for-central-bank-digital-currencies","status":"publish","type":"post","link":"https:\/\/bulletins.bfconsulting.com\/en\/design-considerations-for-central-bank-digital-currencies\/","title":{"rendered":"Design considerations for central bank digital currencies"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Central bank digital currencies (CBDCs) are being explored and, in some cases, piloted by central banks around the world. To become a contributing part of our future world however, they must be paired with an extremely resilient, secure and performant infrastructure that has the ability to onboard, authenticate and support users on a massive scale. As central banks look toward designing, developing and implementing CBDCs, they must give careful attention to certain elements of policy and technical design, especially those related to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Ledger infrastructure \u2013 central banks will want to be careful to balance their need for control over the currency with consumer privacy rights.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Wallets and funds\/key custody \u2013 consumers will need a secure way to hold their funds and send transactions.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Privacy \u2013 a CBDC can potentially reveal significantly more information about individuals\u2019 transactions to central banks than existing systems do. Consumer privacy is an issue of major importance.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Monetary policies \u2013 there are still uncertainties over how a CBDC will affect monetary policy implementation and transmission. These uncertainties suggest using a cautious approach going forward until this is better understood.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Future opportunities for innovation \u2013 there will be many opportunities for innovation using a CBDC. Central banks need to remain open to them in order to maximize the efficacy of implementing such a currency.<\/span><\/li>\n<\/ul>\n<div class=\"rpbt_shortcode\">\n\n<div id='rpbt-related-gallery-1' class='gallery related-gallery related-galleryid-15476 gallery-columns-3 gallery-size-thumbnail'><figure class='gallery-item' role='group' aria-label='The brave new world of open banking in the Asia-Pacific region'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/the-brave-new-world-of-open-banking-in-the-asia-pacific-region\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2019\/06\/the-brave-new-world-of-open-banking-in-the-asia-pacific-region-150x150.png\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-12965\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-12965'>\n\t\t\t\tThe brave new world of open banking in the Asia-Pacific region\n\t\t\t\t<\/figcaption><\/figure><figure class='gallery-item' role='group' aria-label='The Pulse of FinTech in the First Half of 2021: A New KPMG Report'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/the-pulse-of-fintech-in-the-first-half-of-2021-a-new-kpmg-report\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2021\/09\/40c80282-2a70-317b-4204-f5daf3c334391-150x150.jpg\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-16247\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-16247'>\n\t\t\t\tThe Pulse of FinTech in the First Half of 2021: A New KPMG Report\n\t\t\t\t<\/figcaption><\/figure><figure class='gallery-item' role='group' aria-label='Banks need to develop their own mobile wallets'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/banks-need-to-develop-their-own-mobile-wallets\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2017\/11\/Banks-need-to-develop-their-own-mobile-wallets-150x150.jpg\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-6804\" loading=\"lazy\" srcset=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2017\/11\/Banks-need-to-develop-their-own-mobile-wallets-150x150.jpg 150w, https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2017\/11\/Banks-need-to-develop-their-own-mobile-wallets-100x100.jpg 100w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-6804'>\n\t\t\t\tBanks need to develop their own mobile wallets\n\t\t\t\t<\/figcaption><\/figure>\n\t\t<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Central bank digital currencies (CBDCs) are being explored and, in some cases, piloted by central banks around the world. To become a contributing part of our future world however, they must be paired with an extremely resilient, secure and performant infrastructure that has the ability to onboard, authenticate and support users on a massive scale. &hellip;<\/p>\n","protected":false},"author":12,"featured_media":15477,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,16],"tags":[],"_links":{"self":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/15476"}],"collection":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/comments?post=15476"}],"version-history":[{"count":1,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/15476\/revisions"}],"predecessor-version":[{"id":15478,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/15476\/revisions\/15478"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/media\/15477"}],"wp:attachment":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/media?parent=15476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/categories?post=15476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/tags?post=15476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}