Central bank digital currencies: ongoing policy perspectives

A group of central banks, together with the Bank for International Settlements, are working together to explore central bank digital currencies (CBDCs) for the public ("general purpose" or "retail" CBDC).

Since publishing a report in October 2020 setting out the common foundational principles and core features of a CBDC, and an executive summary and three detailed reports on system design and interoperability, user needs and adoption and financial stability implications in September 2021, the group has continued to share ideas and perspectives on similar themes, which are summarised in this note:

• Development of CBDC work requires careful consideration and engagement with a wide range of stakeholders, including the private sector and legislators.
• To successfully meet its public policy objectives, a CBDC ecosystem should allow a wide range of private and public stakeholders to participate and, in doing so, deliver services which benefit end users.
• The complex design questions and the potential risks arising from the implementation of any CBDC require careful consideration.
• The evolving payments landscape requires central banks to give some consideration to how CBDCs may be used for wholesale and cross-border use cases.

Alongside the summary, the note shares perspectives on how central banks can best engage industry and the public, what are the key legal issues related to retail CBDC, what tools may be needed to manage stressed conditions, and what could be the implications of using blockchain technology and associated concepts in CBDC.