The Technology of Retail Central Bank Digital Currency
16 Pages Posted: 27 Mar 2020
Date Written: March 1, 2020
Central bank digital currencies (CBDCs) promise to provide cash-like safety and convenience for peer-to-peer payments. To do so, they must be resilient and accessible. They should also safeguard the user's privacy, while allowing for effective law enforcement. Different technical designs satisfy these attributes to varying degrees, depending on whether they feature intermediaries, a conventional or distributed infrastructure, account- or token-based access, and retail interlinkages across borders. We set out the underlying trade-offs and the related hierarchy of design choices.
JEL Classification: E42, E44, E51, E58, G21, G28
Suggested Citation: Suggested Citation