Design Considerations for a Retail CBDC

Design Considerations for a Retail CBDC

The intent of central banks is to have a new digital form of cash that can be used to the benefit of the public. A central bank digital currency (CBDC) would allow central banks to keep up with the digitisation of society. Whether CBDCs will be accepted by the public and become as valuable as cash is to daily lives is still under consideration. This video will outline the properties of cash and how CBDCs might stack up in comparison, alongside some of the design suggestions for how a CBDC might work in practice.
Overview

In this video, Sabrina Rochement outlines how a central bank digital currency (CBDC) could be implemented and used by the public. Sabrina begins by comparing the properties of cash with the potential benefits of a CBDC. The potential contradictions that might arise from this form of digital currency are considered. For example, the privacy that cash affords may not be possible with a CBDC because all transactions are likely to be recorded digitally. Two forms of CBDC design are likely to prevail - a token-based CBDC and an account-based CBDC.

Key learning objectives:

  • Understand the properties of cash in comparison to potential CBDC properties

  • Identify the two different types of CBDC design and what they both mean for users

  • Recognise the implications of CBDCs being used in cross-border transactions

  • Understand the macroeconomic implications that the design of a CBDC may have

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

Summary
logo-animationlogo-animationlogo-animation
Expert

There are no available videos from ""

Related videos

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

,