Central Bank Digital Currencies: the Quest for Public Digital Payment Infrastructures

Abstract

Central Banks provide foundational public infrastructures for payments such as cash and gross settlement systems. In an evolving context, Central Bank Digital Currencies (CBDC) are efforts to leverage new patterns and technologies to provide infrastructures relevant to the digital age. Various research endeavors intend to anticipate their adoption vectors and potential consequences. However, CBDC projects are confronted with contradictory motivations and a large panel of design options.

On the technological level, state-of-the-art cryptography and distributed systems are being considered, as well as more mature technologies. While some initial projects have limited relevance, they raise fundamental questions about the functions of Central Banks, the respective roles of the public and private sectors, technological design and international monetary competition that will define the payment industry, economic development and sovereignty.

Keywords: Settlement, CBDC, Public Infrastructures, Payment, Finance

JEL Classification: K23, G15