Some Lessons from Asian E-Money Schemes for the Adoption of Central Bank Digital Currency
IMF Working Papers, June 9, 2023
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- Some Lessons from Asian E-Money Schemes for the Adoption of Central Bank Digital Currency
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Bibliographic details
- Authors: Tao Sun, Ryan Rizaldy
- Published: June 9, 2023
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400245046.001
Summary
- The paper synthesizes four lessons from the experiences of six Asian e-money schemes for central banks considering adopting central bank digital currency (CBDC).
- Four synthesized lessons:
- (i) CBDC should embody four attributes: trust, convenience, efficiency, and security.
- (ii) CBDC service providers can facilitate CBDC adoption through four channels: leveraging digital technology, targeting use cases, developing business models, and complying with legal and regulatory requirements.
- (iii) Central banks could incentivize CBDC service providers to develop these four channels when considering CBDC adoption.
- (iv) Central banks may be able to establish data-sharing arrangements that preserve privacy while leaving room for CBDC service providers to explore the economic value of data.
Four attributes of CBDC
- Trust
- Convenience
- Efficiency
- Security
Channels through which CBDC service providers can facilitate adoption
- Leveraging digital technology
- Targeting use cases
- Developing business models
- Complying with legal and regulatory requirements
Policy recommendations for central banks
- Incentivize CBDC service providers to develop the four channels listed above when considering CBDC adoption.
- Consider establishing data-sharing arrangements that:
- Preserve privacy.
- Allow CBDC service providers to explore the economic value of data.
Content in this bundle
- Working Paper