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Gaining momentum – Results of the 2021 BIS survey on central bank digital currencies
Gaining momentum – Results of the 2021 BIS survey on central bank digital currencies

90% of the 81 central banks surveyed by the Bank for International Settlements (BIS) are exploring central bank digital currency (CBDC). Compared with last year's survey, the share of  central banks currently developing a CBDC or running a pilot almost doubled from 14% to 26%, and 62% are conducting experiments or proofs-of-concept. The results show that the work on retail CBDCs is at a more advanced stage than the work on wholesale CBDCs. Almost one fifth of central banks are developing or testing a retail CBDC, which is twice the share of central banks building or piloting a wholesale CBDC, which is increasingly driven by reasons related to cross-border payments efficiency. 68% of the surveyed central banks consider that they are likely to or might possibly issue a retail CBDC in either the short or medium term.

#Fintech#CBDC#BIS#DFC
·bis.org·
Gaining momentum – Results of the 2021 BIS survey on central bank digital currencies
Possible Design Choices of CBDC
Possible Design Choices of CBDC
On April 13, 2022, UCHIDA Shinichi, Executive Director of the Bank of Japan, provided an update on the Bank of Japan's central bank digital currency (CBDC) work.
#Fintech#CBDC#Japan#DFC
·boj.or.jp·
Possible Design Choices of CBDC
Abaku Capital
Abaku Capital
Abaku SDR is 100% backed by the currencies underlying the IMF’s currency. Deposits are held by a major international bank with monthly audits conducted by a certified accounting firm to validate the presence of collateral
#Fintech#CBDC#SDR#DFC
·abaku.capital·
Abaku Capital
About Vow
About Vow
"Vow itself is a tool; a tool through which communities can contribute to the creation of a parallel currency supply. Businesses and individuals which form any community can work together, cooperatively eliminating the risks inherent in centralized currency systems."
#Fintech#CBDC#DFC
·vowcurrency.com·
About Vow
Bank of Israel still unsure on digital shekel but garners public support
Bank of Israel still unsure on digital shekel but garners public support
The Bank of Israel has received public support for its plans to possibly issue a digital shekel on grounds it would help the economy by supporting innovation in the payments system, reducing the amount of cash and bolstering the fintech sector. Although the central bank has not made a final decision on whether it will issue a digital shekel, all of the responses to the public consultation indicate support for continued research regarding the various implications on the payments market, financial and monetary stability, legal and technological issues, and more. Some want full anonymity like cash, while others believe a digital shekel should be subject to money laundering rules and helping the war on the "black economy." Also, a digital shekel should also come at a zero or low costs to business owners and consumers and be easy to use for all, including the elderly. https://www.boi.org.il/en/NewsAndPublications/PressReleases/Pages/9-5-22.aspx
#Fintech#CBDC#DFC
·reuters.com·
Bank of Israel still unsure on digital shekel but garners public support
The Bahamas’ ‘Sand Dollar’ Needs Improved Cybersecurity, IMF Says
The Bahamas’ ‘Sand Dollar’ Needs Improved Cybersecurity, IMF Says
The International Monetary Fund (IMF) said that the Bahamas’ Sand Dollar central bank digital currency (CBDC) needs better reach and more security to achieve its aims. The IMF noted the Sand Dollar represents only 0.1% of currency in circulation. The country’s central bank “should continue strengthening internal capacity – including on cybersecurity and the resilience of systems associated with the Sand Dollar,” adding that there are currently “limited avenues to use the Sand Dollar.” https://www.imf.org/en/Publications/CR/Issues/2022/05/06/The-Bahamas-2022-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-517631
#Fintech#CBDC#Caribbean#DFC
·coindesk.com·
The Bahamas’ ‘Sand Dollar’ Needs Improved Cybersecurity, IMF Says
Chilean Digital Peso Would Need to Work Offline, Central Bank Governor Says
Chilean Digital Peso Would Need to Work Offline, Central Bank Governor Says
Banco Central de Chile Governor Rosanna Costa reportedly said that Chile's central bank digital currency (CBDC) would need to accept offline payments, but added that no final decision had been taken on whether to issue a digital form of the Chilean peso. She said that an offline system should “allow the authorities to trace the transaction afterwards,” while safeguarding personal data, adding that the technology to do so was “not necessarily efficient today.”
#Fintech#CBDC#Offline#LATAM#DFC#Chile
·coindesk.com·
Chilean Digital Peso Would Need to Work Offline, Central Bank Governor Says
Wary of Crypto, Tanzania Shifts Closer to Own Digital Currency
Wary of Crypto, Tanzania Shifts Closer to Own Digital Currency
Bank of Tanzania Governor Florens Luoga reportedly said that the central bank is edging closer to introducing a CBDC to help counter the rising popularity of cryptocurrencies in the nation. “It’s important for us to provide a central bank digital currency as a safe alternative because many people are being affected by cryptocurrency speculators.”  The bank can’t ignore the technological advancement of money, and it has sent its officials to countries with more experience in CBDCs, including Nigeria, to learn from them.
#Fintech#CBDC#Africa#DFC
·bloomberg.com·
Wary of Crypto, Tanzania Shifts Closer to Own Digital Currency
eNaira Upgrade: CBN to include bills payment
eNaira Upgrade: CBN to include bills payment
Central Bank of Nigeria Lagos Branch Controller Bariboloka Koyor reportedly there is going to be an upgrade on the eNaira speed wallet app that will allow it to do transactions such as paying for utilities and even flight tickets. Going forward it will also be used by the government to disburse funds that they want to give to alleviate poverty. Explaining the difference between the eNaira and the internet banking services offered by banks, Koyor pointed to the speed of transaction settlement and that there are no charges.
#Fintech#CBDC#Africa#DFC
·vanguardngr.com·
eNaira Upgrade: CBN to include bills payment
Nigerian CBDC Wallet Update to Enable Utility Payments, USSD Functionality to Be Added
Nigerian CBDC Wallet Update to Enable Utility Payments, USSD Functionality to Be Added
"Jelil also is quoted in the report revealing how the CBN’s plan to add the USSD functionality to the wallet opens the door for non-account holders to use the CBDC. According to one financial specialist and blogger, USSD may be the best available technology that can be used to deliver mobile financial services to low-income customers."
#Fintech#CBDC#Africa#DFC
·news.bitcoin.com·
Nigerian CBDC Wallet Update to Enable Utility Payments, USSD Functionality to Be Added
Chile's central bank pushes back digital currency decision
Chile's central bank pushes back digital currency decision
Banco Central de Chile said that although a central bank digital currency (CBDC) could improve payment systems and mitigate risks, a deeper cost and benefit analysis is required and it would publish a new report towards the end of the year. The central bank said CBDC would allow the benefits associated with digital transformation to be enhanced, while mitigating some of its risks, adding that the currency could help develop a more competitive, resilient and inclusive payment system. However, a final decision on this requires a more in-depth analysis of its costs and benefits, as well as a more complete comparison with other policy alternatives that address the same challenges.
#Fintech#CBDC#LATAM#DFC#Chile
·reuters.com·
Chile's central bank pushes back digital currency decision
What business model for the Digital Euro? Lessons from Brazil and Switzerland
What business model for the Digital Euro? Lessons from Brazil and Switzerland
"In this paper, we show that approaches based on this type of CBDC design are unlikely to satisfy user demand. We argue that it is more important to focus on the payment system. Drawing on the experiences in Brazil (Pix) and Switzerland (Twint), we show that successful payment systems do not require users to hold system-specific payment assets, making them convenient and accessible. An important motive for the ECB to develop a digital euro is to preserve monetary sovereignty and strategic autonomy. A European payment system could ensure autonomy over such a critical infrastructure of an economy. For it to succeed, the ECB should look to and learn from the best examples."
#Fintech#CBDC#Eurozone#DFC
·suerf.org·
What business model for the Digital Euro? Lessons from Brazil and Switzerland
Banco Central del Paraguay studies Central Bank Digital Currency
Banco Central del Paraguay studies Central Bank Digital Currency
[December 15, 2021] "The Central Bank of Paraguay, through Resolution No. 7/21, approved the regulations of the Working Group on Digital Currency of the Central Bank of Paraguay (CBDC, for its acronym in English), in order to monitor the different international initiatives on CBDC, as well as analyzing the implications of an eventual implementation of some type of CBDC by the BCP. The motivation to explore a CBDC is its use as a means of payment. A digital currency issued by the BCP could provide complementary money to the public, adhering to the development of the national payment system, as long as the security of the transactions is preserved."
#Fintech#CBDC#LATAM#DFC#Paraguay
·web.archive.org·
Banco Central del Paraguay studies Central Bank Digital Currency
The digital economy, privacy, and CBDC
The digital economy, privacy, and CBDC
This ECB paper studies a model of financial intermediation, payment choice, and privacy in the digital economy. Cash preserves anonymity but cannot be used for more efficient online transactions. By contrast, bank deposits can be used online but do not preserve anonymity. Banks use the information contained in deposit flows to extract rents from merchants in need of financing. Payment tokens issued by digital platforms allow merchants to hide from banks but enable platforms to stifle competition. An independent digital payment instrument (a CBDC) that allows agents to share their payment data with selected parties can overcome all frictions and achieves the efficient allocation.
#Fintech#CBDC#Privacy#DFC
·ecb.europa.eu·
The digital economy, privacy, and CBDC
Resilience of bank liquidity ratios in the presence of a central bank digital currency
Resilience of bank liquidity ratios in the presence of a central bank digital currency
"Given the severity of the scenarios and assumptions, our analysis presents an upper bound estimate of the potential impact a CBDC could have on bank regulatory liquidity ratios. These findings are in line with previous research conducted by the Bank of Canada (García et al. 2020) and the Bank of England (2021), which also conclude that a CBDC or other forms of digital money do not pose a financial stability threat from a liquidity standpoint."
#Fintech#CBDC#Canada#DFC
·bankofcanada.ca·
Resilience of bank liquidity ratios in the presence of a central bank digital currency
Norges Bank CBDC Sandbox Project
Norges Bank CBDC Sandbox Project
"Nahmii AS are delighted to announce that we have been chosen to work with Norges Bank (the central bank of Norway) on their upcoming experimental CBDC sandbox project. This prestigious award confirms Nahmii AS’s position as a global leader in the blockchain space and represents another milestone for the Bergen-based company." https://www.norges-bank.no/bankplassen/arkiv/2022/eksperimentell-testing-av-digitale-sentralbankpenger/
#Fintech#CBDC#Europe#DFC
·blog.nahmii.io·
Norges Bank CBDC Sandbox Project
What is legal tender?
What is legal tender?
"Legal tender has a narrow technical meaning which has no use in everyday life. It means that if you offer to fully pay off a debt to someone in legal tender, they can’t sue you for failing to repay."
#Fintech#CryptoAssets#CBDC#LegalTender#DFC
·bankofengland.co.uk·
What is legal tender?
New experiments pave way for international payments using CBDCs
New experiments pave way for international payments using CBDCs
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) published a paper outlining how the financial transaction messaging platform is preparing to interact with the cross-border use of central bank digital currencies (CBDCs). SWIFT is teaming up with Accenture to test ways to link multiple CBDC networks, as well as CBDC and traditional currency networks, as a proof of concept.
#Fintech#CBDC#CrossBorder#SWIFT#DFC
·swift.com·
New experiments pave way for international payments using CBDCs
G7 Finance Ministers, Central Bank Governors Issue Statement on CBDCs
G7 Finance Ministers, Central Bank Governors Issue Statement on CBDCs
G7 Finance Ministers and Central Bank Governors have issued a statement that, among other things, highlighted the opportunities and implications of central bank digital currencies (CBDCs) and their potential role in future payment transactions. "[It encouraged] jurisdictions exploring CBDCs to examine the international dimensions of CBDCs, in particular their cross-border use. CBDCs with cross-border functionality may have the potential to spur innovation and open up new ways to meet users’ demand for more efficient international payments, but continued international cooperation will be important to understanding and minimizing any negative spillovers to the international monetary and financial system.”
#Fintech#CBDC#Payments#CrossBorder#DFC
·whitehouse.gov·
G7 Finance Ministers, Central Bank Governors Issue Statement on CBDCs
The Money Museum mobile application, the MNB’s new blockchain technology-based platform launched
The Money Museum mobile application, the MNB’s new blockchain technology-based platform launched
"On International Museum Day, the Magyar Nemzeti Bank, the central bank of Hungary, launched the Money Museum mobile application. The new application has two main functionalities: on the one hand, it provides a new channel for displaying useful content related to the Money Museum and finances in general in order to enhance the interactive museum experience; on the other hand, it is an innovative opportunity to test blockchain-based technology. Utilising this, the MNB has created a dedicated platform for NFT (Non-Fungible Token) issuance and coin registration, which can be considered as a novelty among central banks."
#Fintech#CBDC#NFT#DFC
·mnb.hu·
The Money Museum mobile application, the MNB’s new blockchain technology-based platform launched
Central Bank Digital Currency and Banks
Central Bank Digital Currency and Banks
"This paper studies how introducing a central bank digital currency (CBDC) can affect the banking system. We show that CBDC need not reduce bank lending unless frictions and synergies bind deposits and lending together. We then estimate a dynamic banking model to quantify the importance of these frictions and synergies for the impact of a CBDC on the banking system. Our counterfactual analysis shows that a CBDC can replace a significant fraction of bank deposits, especially when it pays interest. However, CBDC has a much smaller impact on bank lending because banks can replace a large fraction of any lost deposits with wholesale funding. Substitution to wholesale funding makes banks' funding costs more sensitive to changes in short-term rates, increasing their exposure to interest rate risk. We also show that a CBDC amplifies the impact of monetary policy shocks on bank lending."
#Fintech#CBDC#DFC
·papers.ssrn.com·
Central Bank Digital Currency and Banks
Platypus: A CBDC with Unlinkable Transactions and Privacy Preserving Regulation
Platypus: A CBDC with Unlinkable Transactions and Privacy Preserving Regulation
"In this paper, we depart from blockchain-based CBDC designs and instead build on ideas from traditional e-cash schemes. We propose a new style of building digital currencies that combines the transaction processing model of e-cash with an account-based fund management model. We argue that such a style of building digital currencies is especially well-suited to CBDCs. We also design the first such digital currency system, called Platypus, that provides strong privacy, high scalability, and expressive but simple regulation, which are all critical features for a CBDC. Platypus achieves these properties by adapting techniques similar to those used in anonymous blockchain cryptocurrencies like Zcash to fit our account model and applying them to the e-cash context." https://publications.cispa.saarland/3823/1/platypus_ccs_final.pdf
#Fintech#CBDC#Privacy#FinancialIntegrity#Regulation#DFC
·eprint.iacr.org·
Platypus: A CBDC with Unlinkable Transactions and Privacy Preserving Regulation
Personal loss recovery for offline digital cash
Personal loss recovery for offline digital cash
"Our analysis shows that automated loss recovery for digital cash through an expiry date could provide substantial benefits to consumers. A potentially important aspect that we consider in the paper is privacy in payments (Garratt and Van Oordt 2021, Borgonovo 2021). While our model does not explicitly account for privacy preferences, results in our paper do suggest that a digital cash that provides more privacy may achieve a higher level of social welfare despite weaker loss recovery. Finally, some consumers may feel uncomfortable with expiring digital cash for reasons that are outside of our economic model. It might therefore be beneficial to consider providing an option to allow users to opt out from automated loss recovery at their own financial risk."
#Fintech#CBDC#Offline#Payments#DFC
·voxeu.org·
Personal loss recovery for offline digital cash
An Ontological Exploration of CBDC Governance Design
An Ontological Exploration of CBDC Governance Design
"Financial ecosystems and their related transactions are increasingly relying on big tech payment service providers, such as ApplePay and WeChat. By offering these services, transacting in unregulated cryptocurrencies becomes easier. Consequently, big tech companies take a powerful position in the ecosystem, such dominance may be avoided by a decentralized ecosystem, in which decision making power is distributed over several actors. Emergence of several highly unregulated cryptocurrencies and increased reliance on big tech, motivates central banks to investigate alternatives, called Central Bank Digital Currency (CBDC) that can be subject to governance and rules. CBDC is specifically aimed to decrease dependency on largely uncontrolled big tech payment service providers and to limit the growth of unregulated cryptocurrencies. In this paper, we explore the key question of how to design a governance structure, we do that by applying the DECENT ontology and conceptual models to the real world use-case of CBDC."
#Fintech#CBDC#CryptoAssets#Ontology#DFC
·researchgate.net·
An Ontological Exploration of CBDC Governance Design
Towards a Reference Ontology of Money
Towards a Reference Ontology of Money
"Having a clear understanding of the concepts on the finance domain is fundamental to figure out the evolution of the economy before innovations in the Finance Industry. This research aims at addressing these issues by investigating the conceptual foundations of money, grounded in the Unified Foundational Ontology and based on the literature review of the most relevant economic theories."
#Fintech#CBDC#CryptoAssets#Ontology#DFC
·researchgate.net·
Towards a Reference Ontology of Money
Towards Ontological Foundations for CBDC
Towards Ontological Foundations for CBDC
"The digitalization of the economy and technological innovations are pushing central banks to investigate new forms of digital money. The concept and design of digital currencies have been investigated by central banks for some time. Although much progress has been made towards a convergence on definitions , the term Central Bank Digital Currency (CBDC) is still used to refer to a number of concepts. In this paper we address this issue by extending and refining our previous work, the Reference Ontology of Money and Virtual Currencies, to provide a semantic foundation for the concept of CBDC."
#Fintech#CBDC#Ontology#DFC
·researchgate.net·
Towards Ontological Foundations for CBDC
A Reference Ontology of Money and Virtual Currencies
A Reference Ontology of Money and Virtual Currencies
"In recent years, there has been a growing interest, within the financial sector, in the adoption of ontology-based conceptual models to make the nature of conceptualizations explicit, as well as to safely establish the correct relations between them, thereby supporting semantic interoperability. Despite the wide number of efforts to create a unified view of the reality related to economic and financial domains, no comprehensive enough formal model has been developed to, on one hand, accurately describe the semantics regarding the world of money and currencies and, on the other hand, differentiate them from virtual currencies - of which cryptocurrencies are the most significant representative. This research aims at tackling these questions by conducting an ontological analysis of money and related concepts, grounded in the Unified Foundational Ontology, based on a literature review of the most relevant economic theories, and considering recent innovations in the financial industry."
#Fintech#CryptoAssets#CBDC#Ontology#DFC
·researchgate.net·
A Reference Ontology of Money and Virtual Currencies