Training Program

Central bank staff involved in monetary policy, monetary policy implementation & digital money.

None

"Central bank operations in a world of digital money" is a newly designed course for the SARTTAC member countries. The rise of new and proposed forms of digital money, including CBDC, Stablecoins, payment service providers etc., are unprecedented and imply an unprecedented change in the retail and wholesale payments system. The significance of the advent of alternative payment arrangements differs depending on whether the monetary authority is conducting a traditional policy intended to affect overall real interest rates, or a quantitative easing or tightening. It also differs depending on whether the authority implements its policy by targeting nominal interest rates or by targeting monetary aggregates. An important question for central banks is the extent to which these innovations upend the role of and implementation of monetary policy. The course will focus on the monetary policy implementation of the introduction of CBDCs and of bank and nonbank stablecoins into an economy. The course will focus on the interest rate channel and if digital money will change monetary policy and central bank operations. The course will also elaborate on the redefinition of monetary aggregates to take into account new payment assets. Finally, some lectures will center on currency-in-circulation (CiC) trends globally, and how it may impact central bank operations such as seigniorage, transactional velocity of digital money, and sterilization, including parallels between CiC and CBDC.