Central Bank Operations in a world of Digital Money

Source details

Title: "Central Bank Operations in a world of Digital Money"
Newly designed course for the SARTTAC member countries.
Target Audience:
- Central bank staff involved in monetary policy, monetary policy implementation & digital money.
Qualifications: None
Session details:
- Session No.: SA 22.38
- Location: New Delhi, India
- Date: September 26-30, 2022 (1 week)
- Delivery Method: In-person Training
- Primary Language: English
- Status: Deadline passed

The course addresses the rise of new and proposed forms of digital money, including:
- CBDC
- Stablecoins
- Payment service providers
Emphasis on how these innovations imply unprecedented changes in retail and wholesale payments systems.
Analytical distinctions highlighted:
- The significance of alternative payment arrangements differs depending on whether the monetary authority:
- Conducts a traditional policy intended to affect overall real interest rates, or
- Conducts quantitative easing or tightening.
- It also differs depending on whether the authority implements policy by:
- Targeting nominal interest rates, or
- Targeting monetary aggregates.
Core questions and foci:
- The extent to which these innovations upend the role of and implementation of monetary policy.
- Monetary policy implementation implications of introducing CBDCs and bank and nonbank stablecoins into an economy.
- Focus on the interest rate channel and whether digital money will change monetary policy and central bank operations.
- Redefinition of monetary aggregates to take into account new payment assets.
- Lectures on currency-in-circulation (CiC) trends globally and impacts on central bank operations, including:
- Seigniorage
- Transactional velocity of digital money
- Sterilization
- Parallels between CiC and CBDC

Upon completion, course participants will:
- be familiar with the different forms of digital money (inside & outside money, private & public money)
- will understand the challenges and implications of new forms of digital money for monetary policy implementation