Back Matter
  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund
  • | 2 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund
  • | 3 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund

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1

CBDC is digital money issued by a central bank and is conceivable in both retail and wholesale form. Retail CBDC, or sometimes general purpose CBDC, refers to CBDC that can be held and used by individuals, whereas wholesale CBDCs are available only to a selected set of financial institutions. For more on these different types, see BIS (2018).

2

For a recent survey of CBDC projects around the world, see Boar and Wehrli (2021). For online resources that are updated continuously, see Atlantic Council (2021) and Kiff (2021).

3

These central banks have also been given the opportunity to read and comment on the text before publication. Any errors remain the responsibility of the author.

4

The ECCB is the monetary authority in the Eastern Caribbean Currency Union (ECCU), which is a monetary union consisting of Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, Saint Lucia, and St. Vincent and the Grenadines.

5

For a discussion of different risks that a central bank needs to consider in a CBDC project, see Kiff and others (2020) and Khan and Malaika (2021).

6

For an overview of financial inclusion, see World Bank (2021), Ozili (2020), and Dev (2006).

8

The Financial Inclusion Law was enacted in 2014.

9

For more on financial inclusion in China, see World Bank and PBOC (2018).

10

For a discussion on the general role of central banks in payments, see BIS (2003).

13

The Riksbank is also analyzing legal forms to strengthen cash. See Sveriges Riksbank (2021a).

23

For example, Mu (2021).

25

This follows the concept used in Kiff and others (2020).

27

For a discussion on how state-owned enterprises have developed in the recent decades, see Bruton and others (2014).

28

For a discussion, see Kiff and others (2020).

30

Recently, however, the Hong Kong Monetary Authority issued a whitepaper outlining an approach similar to sCBDC. Cash in Hong Kong SAR is currently also mainly issued by private institutes rather than the monetary authority. For more on this, see HKMA (2021).

31

Importantly, systems ownership does not preclude outsourcing of certain aspects but it entails responsibility for the overall development, maintenance, and functionality of the system, including outsourced services. For a definition of system owner, see NIST (2021).

32

For more on potential operational risks of outsourcing central bank activities, see Kiff and others (2020)

33

For an overview of DLT in payments, see BIS (2017) and Shabsigh and others (2020). DLT can be permissionless, meaning that anyone can join the network and partake in performing crucial functions, or permissioned, meaning there are strict requirements to joining the network. All central banks that are currently exploring DLT are focusing on the permissioned variant. For more on this, see Natarajan and others (2017).

34

Private sector here includes state-owned enterprises and cooperatives. See Bruton and others (2014) for a discussion.

37

In particular, see Bindseil (2020).

38

For more on this, see Agur and others (2022).

40

For a legal discussion on interest rates and CBDC, see Bossu and others (2020).

42

The tested solution relied on smaller local networks that were meant to act as backups to the main telecommunication system rather than independently of telecommunications.

47

For more on potential macrofinancial implications of cross-border use of CBDC, see IMF (2020a) and BIS and others (2021).

49

It is possible, however, to integrate a Sand Dollar account with a bank account so that CBDC is exchanged into commercial bank money before making the cross-border payment.

53

This section was written by Marianne Bechara, Wouter Bossu, and Akihiro Yoshinaga.

54

On the analytical model for assessing those questions, see Bossu and others (2020).

58

PBOC (2020). Articles 18 and 19.

59

Eastern Caribbean Central Bank Agreement (Amendment) Order (2020), Article 2.

60

Eastern Caribbean Central Bank Agreement (Amendment) Order (2020), Articles 18(1) and 18(3).

63

For a discussion on CBDC projects and central bank governance, see Bechara and others (2021).

64

For a summary of the Exuma survey, see CBOB (2019).

65

For example, see IMF (2020b).

Behind the Scenes of Central Bank Digital Currency: Emerging Trends, Insights, and Policy Lessons
Author: Gabriel Soderberg, Ms. Marianne Bechara, Wouter Bossu, Ms. Natasha X Che, Sonja Davidovic, Mr. John Kiff, Ms. Inutu Lukonga, Mr. Tommaso Mancini Griffoli, Tao Sun, and Akihiro Yoshinaga