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Central Bank Digital Currencies

In: Handbook on Blockchain

Author

Listed:
  • Nadia Pocher

    (Universitat Autónoma de Barcelona
    KU Leuven - CiTiP
    Universitá di Bologna)

  • Andreas Veneris

    (University of Toronto)

Abstract

Today’s societal digitization continues to advance at exponential speeds driven by technology trends. Billions of Internet of Things devices have made their way into our daily lives but also into healthcare, manufacturing, and supply chains. In contrast, the financial sector still largely operates on legacy infrastructures, where merchants receive their payments long after they released the digital/physical good to the consumer. In addition, the emergence of Decentralized Finance through blockchain technology, and the accumulation of data in private silos, has demonstrated a capacity to impact national sovereignty and monetary transmission channels. Against this backdrop, many central banks have recently started to research and test the issuance of digitally native fiat money—or Central Bank Digital Currencies (CBDCs)—in an effort to redesign the essence and use of physical cash. CBDCs present a broad variety of designs, which translate into manifold techno-legal and standardization policy questions. In this context, this chapter surveys the state-of-the art with specific focus on “retail” CBDCs. In doing so, it provides an overview of candidate architectures, heeds legal impacts and regulatory compliance issues, presents a set of case studies and touches upon cross-border CBDC challenges.

Suggested Citation

  • Nadia Pocher & Andreas Veneris, 2022. "Central Bank Digital Currencies," Springer Optimization and Its Applications, in: Duc A. Tran & My T. Thai & Bhaskar Krishnamachari (ed.), Handbook on Blockchain, pages 463-501, Springer.
    • Handle: RePEc:spr:spochp:978-3-031-07535-3_15
    DOI: 10.1007/978-3-031-07535-3_15
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    References listed on IDEAS

    as
    1. David Chaum & Christian Grothoff & Thomas Moser, 2021. "How to issue a central bank digital currency," Working Papers 2021-03, Swiss National Bank.
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    3. Raphael Auer & Codruta Boar & Giulio Cornelli & Jon Frost & Henry Holden & Andreas Wehrli, 2021. "CBDCs beyond borders: results from a survey of central banks," BIS Papers, Bank for International Settlements, number 116.
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