Central Bank Perspectives

Central bank digital currency: the quest for minimally invasive technology

Bank for International Settlement

Central bank digital currency: the quest for minimally invasive technology

June 7, 2021

Working Papers No 948


The authors set out the economic and operational requirements for a “minimally invasive” design – one that preserves the private sector’s primary role in retail payments and financial intermediation – for CBDCs and discuss the implications for the underlying technology. Developments inspired by popular cryptocurrency systems do not meet these requirements. Instead, cash is the model for CBDC design. Showing particular promise are digital banknotes that run on “intermediated” or “hybrid” CBDC architectures, supported with technology to facilitate record-keeping of direct claims on the central bank by private sector entities.
New forms of digital money

Bank of England

New forms of digital money

June 6, 2021

Discussion Paper

This Discussion Paper sets out the Bank’s emerging thoughts on new forms of digital money.
Central bank digital currencies - Third report of working group

Norges Bank

Central bank digital currencies - Third report of working group

May 18, 2021

1/2021

This report by a Norges Bank working group summarises the third phase of Norges Bank’s research into CBDCs. The working group discusses the characteristics any CBDC must have, relevant technical solutions and the impact of introducing a CBDC. The working group also discusses international developments in this area and how Norges Bank’s research into CBDCs can continue. The purpose of publishing the working group’s report is to provide information about its work, disseminate knowledge and foster dialogue among stakeholders.
A Bank of Israel Digital Shekel – Potential Benefits, Draft Model, and Issues to Examine​​

Bank of Israel

A Bank of Israel Digital Shekel – Potential Benefits, Draft Model, and Issues to Examine​​

May 10, 2021

The document outlines, in general terms only, a draft model of a Bank of Israel digital currency. This draft does not represent any Bank of Israel decision regarding the characteristics of a digital shekel should any be issued. The draft model is the basis for a discussion and for examination of alternatives by the work teams involved in the matter at the Bank of Israel.
Dear Mom, Forget the Cash

International Monetary Fund

Dear Mom, Forget the Cash

March 1, 2021

Editorial

This article is written in letter form to a previous generation accustomed to transacting only in the physical world. It explains the inevitable evolution of money into the digital world. It describes the benefits and some of the challenges that we will encounter as central bank digital currency is introduced.
Preconditions for a general-purpose central bank digital currency

The Federal Reserve System of the United States

Preconditions for a general-purpose central bank digital currency

February 24, 2021

FEDS Notes 2021

Money is a social and legal construct underpinned by trust. Conceptions of money have evolved and money has taken many forms over the years. The Federal Reserve note, which was first issued in 1914, is a relatively recent development by historical standards. Today, there are ongoing discussions on a new form of central bank money distinct from physical cash and limited-access central bank deposits. This report focuses on the potential for a general-purpose CBDC that can be used by the public for day-to-day payments.
Central bank digital currencies: foundational principles and core features

Bank for International Settlements

Central bank digital currencies: foundational principles and core features

October 9, 2020

Report no 1

The Bank of Canada, European Central Bank, Bank of Japan, Sveriges Riksbank, Swiss National Bank, Bank of England, Board of Governors of the Federal Reserve and Bank for International Settlements have collaborated on a report setting out common foundational principles and core features of a CBDC.
Security and convenience of a central bank digital currency

Bank of Canada

Security and convenience of a central bank digital currency

October 5, 2020

Staff Analytical Note 2020-21

The central bank could mitigate potential security risks in the design of the CBDC by limiting balances or transfers, modifying liability rules or imposing security protocols on storage providers.
Report on a digital euro

European Central Bank

Report on a digital euro

October 1, 2020

This report examines the issuance of a central bank digital currency (CBDC) – the digital euro – from the perspective of the Eurosystem. Such a digital euro would be a central bank liability offered in digital form for use by citizens and businesses for their retail payments. It would complement the current offering of cash and wholesale central bank deposits.
Central Bank Digital Currencies: An Analytical Framework for Arab Central Banks

Arab Monetary Fund

Central Bank Digital Currencies: An Analytical Framework for Arab Central Banks

September 15, 2020

No. 152 2020

This policy paper aims at exploring the opportunities and challenges related to the issuance of digital currencies by central banks in the Arab Region, providing an analytical framework for a comprehensive set of perspectives to look at when a central bank explores the opportunity to initiate its digital currency project.
Central bank digital currency project status report

Norges Bank

Central bank digital currency project status report

August 31, 2020

Paper 2/200

The CBDC project is now in its third phase. The purpose of the third phase is to provide a more solid foundation for assessing whether Norges Bank should work to issue a CBDC and if so, in what form.
Rise of the central bank digital currencies: drivers, approaches and technologies

Bank for International Settlements

Rise of the central bank digital currencies: drivers, approaches and technologies

August 15, 2020

BIS Working Papers No 880

BIS sets out a comprehensive database of technical approaches and policy stances on issuance.  It takes stock of the technical design options. It concludes with an in-depth description of three distinct CBDC approaches by the central banks of China, Sweden and Canada.