Print this chapterPrint this chapter

Blockchain Technology and Cryptocurrencies

Shaping the Financial World

Central Bank Digital Currencies

Central Bank Initiatives 

Real Time Gross Settlement
  • Brazil, Canada (Project Jasper), Europe and Japan (Project Stella), Singapore (Project Ubin), South Africa (Project Khokha)
Digital Currency
  • Central Bank Claim: Bahamas (Sand Dollar), Ecuador (Dinero Electrónico), Iran (Payman), Sweden (E-Krona)
  • Commercial BankClaim:Philippines (ePiso), Senegal (eCFA), Tunisia (e-Dinar)
  • Possible Hybrid: China (Digital Currency Electronic Payment)
  • Commodity Backed: U.K. (Royal Mint Gold), Venezuela (Petro)
  • Other: Dubai –emCash, Saudi & UAE (cross-border pilot), Uruguay (Digital Peso)

CBDC Potential Architectures



CBDC – Opportunities 
  • Continue Government Provision of a Means of Payment
  • Promote Competition in Banking System
  • Promote Financial Inclusion & P2PPayment
  • Address Payment System 'Pain Points'
  • For Some Nations, Possibly Avert Sanctions
CBDC - Challenges & Uncertainties
  • Financial Stability and Potential to Increase Ease of Bank Runs 
  • Changes to Commercial Banks' Deposits and Funding Models 
  • Effects on Credit Allocation and Economy
  • Monetary Policy Implementation & Transmission
  • Resilience of Open Payment Infrastructures