Digital Fiat: The Future of CBDCs

The deployment of central bank digital currencies (CBDCs) on a global scale is no longer a question of “if” but of “when.” As countries representing the vast preponderance of global gross domestic product continue to explore CBDCs to varying degrees, they confront a host of opportunities to better align with a fully digital economy while also staring at a wide range of hurdles, from public perception and resistance to the effects of such a move in their own jurisdictions and globally.

This Javelin Strategy & Research report takes a wide view of CBDCs: What they are, how they can be designed, how they can leverage new technologies to solve for age-old challenges like cross-border payments and financial inclusion, as well as the pressing concerns that will have to be alleviated before we see widespread adoption of the digital currencies. CBDCs are coming, but the journey to being a core tool of the financial system is fraught with challenges.

Key questions discussed in this report:

• Who is involved in the development of CBDCs? 
• What are the potential use cases for CBDCs? 
• What are the risks associated with CBDCs?  
• What do CBDCs mean for the existing digital asset ecosystem? 
   

Companies Mentioned:

Banco Central de la República Argentina, Banco de Mexico, Bank of Canada, Bank of England, Bank of France, Bank of Indonesia, Bank of International Settlement, Bank of Israel, Bank of Japan, Bank of Korea, Bank of Negara Malaysia, Bank of Russia, Bank of Thailand, Banque de France, CBDCTracker, Central Bank of Brazil, Central Bank of the Republic of Turkey, Central Bank of the United Arab Emirates, Citi, Consult Hyperion, Credit Suisse, Digital Currency Institute of the People's Bank of China, eCurrency Mint, Goldman Sachs, Hong Kong Applied Science and Technology Research Institute, Hong Kong Centre, Hong Kong Monetary Authority, Hyperledger Fabric, Hypothekarbank, IMF, Monetary Authority of Singapore, Movmint, Norges Bank, Partior, People's Bank of China, R3, RBI, Reserve Bank of Australia, Saudi Arabian Monetary Authority, SIX, South African Reserve Bank, Sveriges Riksbank, Swift, Swiss Centre, Swiss National Bank, UBS, United States Federal Reserve, World Bank,