CBDCs and Stablecoins: Strategic Management and Regulatory Implications of Digital Money

Why Attend

Changes in payments, finance and technology, alongside the disruption of the Covid-19 pandemic have led to a growing interest in CBDCs. For many central bankers, the questions is no longer ‘if’ but ‘when and ‘how’. Digital currencies represent an opportunity to improve efficiency in payment systems, enable faster and better cross border payments, and expand financial inclusion. Yet, while central bankers explore the ways in which digital currencies could help to achieve their objectives, they naturally have reservations. Questions around issuance, regulation and use crowd in, overriding concerns about the implications for monetary policy and financial stability remain. This course is designed to equip central bankers to meet these challenges. Each day will feature three hours of expert-led Live Content to maximise the opportunity to share and learn. The chair will ensure participants have opportunities to network throughout the course, culminating in the Practical Implementation Workshop.

Download brochure

Course Objectives

  • At the conclusion of the training, participants will be able to:
  • • Understand the implications of CBDCs on financial stability and monetary policy
  • • Assess the legal implications of crypto assets and digital money
  • • Develop strategies for effective regulation of privately issued digital money
  • • Assess the opportunities for improving cross-border payments and financial inclusion
  • • Design a cost-benefit analysis of digital money with a focus of systemic oversight

Target Audience

Central Bankers only

The Challenges and Implications of Central Banks Issuing Digital Currencies

CBDCs in 2021: the state of the art

  • Basic overview: defining and understanding the differences (and similarities) between CBDCs, so-called stablecoins and crypto assets
  • What are the different use cases of CBDCs?
  • Overview of implications for central bankers, regulators and supervisors
  • Discussion: what are the next steps and key dynamics?


So-called stablecoins: risks, vulnerabilities, and FSB recommendations

  • Overall summary of crypto-assets financial stability risks
  • Risks to financial stability from non-stablecoin cryptos
  • Vulnerabilities concerning stablecoins
  • Decentralised finance
  • Global stablecoins
  • FSB global stablecoins recommendations and progress report


The potential impact of so-called stablecoins on monetary policy

  • What are the implications of so-called stablecoins for the implementation of monetary policy?
  • Do they impact the transmission channel?
  • Are retail CBDCs the solution?

Use of CBDCs to Improve Payment Systems

Making the most of opportunities in national and cross-border payments

  • Why do cross-border payments need to be improved? What has been learned from previous efforts?
  • CBDCs potential for improving cross-border payments efficiency (comparison also with so-called stablecoin initiatives)
  • Examples of experiments and successful projects and initiatives
  • Discussion: what are the next steps and key dynamics?


CBDC design principles: decision making: the need for cross-jurisdictional thinking

  • What is the Bank of Canada doing?
  • What is the coalition of central banks doing
  • What are some of the key considerations in designing a CBDC
  • Discussion: what CBDC design elements would most benefit from cross-border consideration?


So-called stablecoins and CBDCs: a driver for financial inclusion?

  • Overview financial inclusion strategies
  • Risks and opportunities for financial inclusion policies and strategies
  • Effective regulation in order to facilitate the potential digital money for financial inclusion
  • Discussion: to what extent should so-called stablecoins and/or CBDCs be incorporated into financial inclusion strategies?

Analysing the Role of Central Banks in Digital Currencies

Legal aspects of issuing a CBDC

  • What are the key legal issues?
  • CBDC design: account-based vs. token-based approaches
  • Can CBDCs be granted “currency” status?


Role of private sector with regards to CBDC usage

  • Are public/private partnerships useful for CBDC development?
  • What is the current role of the private sector in CBDC experimentation?
  • What are the areas in which private sector implementation can be most useful (e.g. AML/CFT, payment system)?
  • Discussion: should central banks be granted a monopoly for the issuance of digital currency?


If CBDCs are the solution, what is the problem?

  • What are the issues that CBDCs need to address?
  • Why would central banks issue a retail CBDC?
  • Why would central banks issue a wholesale CBDC?

Use of Technology Platforms for CBDC

Technology platforms for CBDCs

  • What are the technology options for a CBDC?
  • How should central banks go about choosing the technology – is interoperability a relevant consideration?
  • Is DLT necessary – could a centralised platform also work?
  • How do central banks keep pace with new technologies if they issued their own CBDC?


Understanding implications for banking, financial stability and monetary policy

  • Overview of considerations regarding the introduction of CBDCs as an instrument for monetary policy
  • Interactions of CBDCs for interest rates and quantitative easing
  • Examples of risks and opportunities of introducing CBDCs


Closing remarks and delegate action plans

  • Summary of the course
  • Discussion of the observed trends and case studies
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points

Implementation Workshop

Benefits of attending the Implementation Workshop:

  • Developments in the area since the live content sessions, including new resource material
  • Questions arising since returning to the central bank
  • Challenges of implementation: where are the roadblocks?
  • Medium-term goals: what is realistic?
  • Establishment of group network to keep in touch with peers and share best practices

This course has not been scheduled, however you can request for In-House training