A proposal for a retail central bank digital currency (CBDC) architecture

Report by the Consultative Group on Innovation and the Digital Economy (CGIDE) established at the BIS Representative Office for the Americas

This report by the Consultative Group on Innovation and the Digital Economy (CGIDE) discusses four main processes in a retail central bank digital currency (CBDC) architecture. These are: i) enrolling new users, ii) creating CBDC (cash-in), iii) destroying CBDC (cash-out) and iv) intra-ledger transfers. These four processes could involve other flows and vary depending on the CBDC design, regulatory framework, technological infrastructure and policy objectives of each jurisdiction. The architecture that this report lays out is for a hybrid model which allows for the division of labour between the central bank and private intermediaries.

The report does not represent a policy position of CGIDE members and observers on the design, issuance or adoption of CBDC, or on technical standards for CBDCs. Instead, it is offered as a public good to advance the work on these issues and to share insights from a group of experts in the Americas region.