The (Near) Future of Central Bank Digital Currencies: Risks and Opportunities for the Global Economy and Society: 7 (Global Politics and Security) [New ed.] 3034342756, 9783034342759

Table of contents :
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