The Importance of Where Central Bank Digital Currencies Are Custodied: Exploring the Need of a Universal Access Device

Abstract

Issuance of digital currency is not new, but DLT enables to consider monetary policy and financial
inclusion in a new way. CBDC is so disruptive it can change money. As digital asset trading evolved
into a market, developers released digital wallets for their storage. While these attempts meet the
users’ needs, their technical level is open to improvements. The development of a secure wallet
infrastructure can solve critical problems, like ensuring equal access to banking service, also offering a
novel approach to digital identity. Whenever a financial transaction is carried out, we must face
problems with fair competition, ownership, and management of our personal data. Infrastructure is
needed to protect and support our digital rights. This technology is ready to develop a secure UAD, a
single key tool for protecting and representing us and the organisation to keep it in a network. UAD
would enable the full benefit of DLT and restore the separation of payment institutions and investment
banks at the core of political agendas, store SSI related information, facilitate micro payments, and
tackle using money for illicit purposes more effectively. UAD is a citizen-centric device, a symbol of
the new digital currency and a tool for social inclusion.

Keywords: Universal Access Device, Central Bank Digital Currency, Digital Money, Wallet, DLT, Digital Euro, SSI

JEL Classification: E42, E58, F33, G21, J33, K22, K23, K24