Behind the Scenes of Central Bank Digital Currency: Emerging Trends, Insights, and Policy Lessons

FinTech Notes, February 9, 2022

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Canonical URL: Behind the Scenes of Central Bank Digital Currency: Emerging Trends, Insights, and Policy Lessons

Authors: Gabriel Soderberg, Marianne Bechara, Wouter Bossu, Natasha X Che, Sonja Davidovic, John Kiff, Inutu Lukonga, Tao Sun, Akihiro Yoshinaga
Published: February 9, 2022
Series: FinTech Notes
DOI: https://doi.org/10.5089/9798400201219.063

Central banks are increasingly pondering whether to issue their own digital currencies to the general public, so-called retail central bank digital currency (CBDC).
The majority of IMF member countries are actively evaluating CBDCs, with only a few having issued CBDCs or undertaken extensive pilots or tests.
The paper shines the spotlight on the handful of countries at the frontier to identify and share insights, lessons, and open questions for the benefit of the many countries following in their footsteps.
The purpose is not to evaluate the courses taken by different jurisdictions, but to study and discuss their key experiences and lessons.

The paper studies six advanced CBDC projects.
Research draws on collaboration and exchanges with the respective central banks to obtain insights beyond what has previously been published.
Unless a specific published source is cited, all information stems from interviews and workshops with members of CBDC project teams in each jurisdiction.
The sample of countries remains small and country circumstances differ widely; insights do not necessarily apply elsewhere.

Adoption stage: Majority of IMF member countries are in active evaluation phases; only a few have issued CBDCs or run extensive pilots/tests.
Frontier experiences: Detailed attention to a small set of advanced projects can provide practical insights and open questions useful to other jurisdictions.
Transferability: Lessons from the frontier countries may inspire further investigation and allow countries to gain time by building on the experience of others, but applicability is context-dependent.
Research emphasis: Focus on understanding implementation experiences, operational choices, and policy trade-offs through direct engagement with project teams.

Behind the Scenes of Central Bank Digital Currency: Emerging Trends, Insights, and Policy Lessons
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