The (Near) Future of Central Bank Digital Currencies: Risks and Opportunities for the Global Economy and Society: 7 (Global Politics and Security)

Cover
Copyright information
Table of contents
List of Figures
Tables
Foreword
Introduction
Chapter 1: CBDCs: The (Near?) Future of a Cashless Economy
	1.1 Payments are the economy’s circulatory system
	1.2 What is money today?
	1.3 CBDCs: a digital ‘public’ currency
	References
Chapter 2: CBDC in the Broad Context of National Payments System Development
	2.1 CBDC in the broad context of national payments system development
	Annex 1: World Bank practical guide for retail payments stocktaking28
	Annex 2: CPMI-IOSCO principles for financial market infrastructures29
		General organisation
		Credit and liquidity risk management
		Settlement
		Central securities depositories and exchange-of-value settlement systems
		Default management
		General business and operational risk management
		Access
		Efficiency
		Transparency
		Responsibilities of central banks, market regulators, and other relevant authorities for financial market infrastructures
	Annex 3: General guidance for NPS development30
		A. Banking system
		B. Planning
		C. Institutional framework
		D. Infrastructure
	Annex 4: World Bank guidelines for government payment programs (GPS)31
		A. Governance, safety and efficiency
		B. Legal and regulatory
		C. Payment systems infrastructure
		D. Cooperation and partnerships to leverage GPS
	Annex 5: CBDC and payment services during emergencies32
	Annex 6: World Bank guidance on developing a comprehensive retail payments strategy34
	Annex 7: World Bank guidelines on balancing cooperation and competition35
	Annex 8: The CPSS-World Bank general principles for international remittance services36
	Annex 9: World Bank guidelines for successful integration of regional financial infrastructures37
	References
Chapter 3: Central Bank Digital Currency and the Future Financial System
	3.1 The existing financial system
		Retail payments
		Foreign exchange settlement – PvP
		Existing securities settlement –DvP
	3.2 Digital currencies
		Transactions
		Signature locks
		Timelocks
		Hashlocks
		Digital currency generations
	3.3 CBDC – The foundation of the new financial system
		CBDC requirements
		Vision of the new financial system
		Implications for CBDC design
	3.4 The new financial system
		Payments
		PvP in a CBDC environment
		DvP in a CBDC environment
		Shape of the new financial system
	References
Chapter 4: Central Bank Digital Currencies and Law
	Conclusions
	References
Chapter 5: The Digital Euro: Challenges and Opportunities
	5.1 Digital currencies and central banking
	5.2 The changing retail payments landscape in Europe
	5.3 The central bank digital euro
		Motivations
		Main features
		Anonymity and privacy
	5.4 Main challenges
		Disintermediation of banks
		Expansion of central banks’ balance sheets
		Financial instability and volatility of capital flows.
		Reputational risks
	Conclusion
	References
Chapter 6: Digital Currency Initiatives on the African Continent
	6.1 Background
	6.2 Review of key aspects relating to digital currency initiatives in Sub-Saharan Africa
		Objectives behind the initiatives
		Key drivers of the initiatives
		Some key considerations for initiatives that are underway
	6.3 Envisaged key characteristics of a successful crypto asset or CBDC
	6.4 Anticipated possible challenges
	6.5 Approaches that have been adopted to crypto-currencies/assets and CBDCs
	Conclusion
	References
Chapter 7: China’s New Digital Currency: Implications for Renminbi Internationalization and the US Dollar
	7.1 China’s new central bank digital currency
		Properties and functions of DCEP
		Implications of a digital currency for China
	7.2 China’s renminbi internationalization
		Steps taken to internationalize the renminbi
		Limitations of renminbi internationalization
	7.3 The potential global impact of the digital currency
		Impact on renminbi internationalization
		Implications for the global dominance of the US dollar
	7.4 Conclusions and future outlook
	References
Chapter 8: CBDCs and Stablecoins: The Scramble for (Controllable) Anonymity
	8.1 Anonymity in CBDCs and privately owned stablecoins
	8.2 Why is anonymity not a design issue?
	8.3 Multilateralism for (controllable) anonymity in CBDCs
	Conclusion
	References
Chapter 9: Digital Currency: A Global Regulatory Framework is Needed
	9.1 Requirements: interoperability and transparency
		Transparency
		Interoperability
	9.2 Elements for an inclusive and adaptable global framework
		Capital access: financial inclusion and financial stability
		Market structure: market efficiency and antitrust
		Consumer experience: consumer welfare and data usage
	Conclusion
	References
Conclusion
	References
Contributors
Abbreviations
Series index