World Economic Forum Publishes CBDC Framework

World Economic Forum Publishes CBDC Framework
29.01.2020 07:18 am

World Economic Forum Publishes CBDC Framework

Cryptocurrencies

The World Economic Forum (WEF) has put together a policy-maker toolkit designed to help central banks investigating the creation of digital currencies.

Last week, a Bank for International Settlements survey found that 80% of central banks are engaged in some form of CBDC work, with 10% expecting to issue their own within three years.

To help central banks navigating the complexities of the issue, the WEF's toolkit aims to act as a decision guide that provides "comprehensive and risk-aware" information, running through costs and benefits.

The toolkit covers retail, wholesale, cross-border CBDC and alternatives in private money such as "hybrid CBDC".

Says the document: "As policy‑makers navigate this process, they should consider how CBDC may introduce new capabilities that support regulatory goals while also introducing new risks or compliance vulnerabilities.

"CBDC could potentially be used as a tool to achieve policy objectives such as improved safety and resilience in payments systems; increased efficiency, access and competitiveness of payments systems; better data transmission and reporting to central banks; and financial inclusion.

"The achievement of these goals with CBDC must be evaluated in the full context of the associated trade‑offs and risks that CBDC may entail."

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