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CBDCs and Stablecoins: Strategic Management and Regulatory Implications of Digital Money
DATE
01 - 01 Jan, 1970
LOCATION
To Be Determined;
Why Attend?
For policymakers and central bankers alike the question of CBDC is no longer ‘if’ but ‘when and ‘how’. Increasingly regulators and observers acknowledge that digital currencies represent an opportunity to improve efficiency in payment systems and cross border payments. The interaction between CBDCs and the growing DeFi ecosystem poses many challenges for central banks. While central bankers explore digital currencies and stablecoins they naturally have reservations. What will CBDC issuance mean for monetary policy? What will banks’ involvement be? Will there be an impact on financial stability? Questions around issuance, regulation and data soon crowd in.
Course Objectives
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By the end of the course, participants will be able to:
- Develop strategies for effective issuance of CBDC
- Understand the implications of CBDCs on financial stability and monetary policy
- Assess the legal implications of crypto assets and digital money
- Gain insights into the challenges that DeFi is posing for central banks
- Assess the opportunities for improving cross-border payments and financial inclusion
Target Audience
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, with time set aside for a workshop on implementing key learnings.
Course introduction session led by the chair
- Introductions and welcome from the chairperson
- Overview of the training course
- Discussion of the delegate expectations
CBDCs in 2022: the state of the art
- Defining and understanding the differences (and similarities) between CBDCs, 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?
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
The potential significance of stablecoins for central banks
- Where do stablecoins fit in in the monetary landscape?
- What are the implications of stablecoins for central banks?
- How should stablecoins be regulated?
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?
Making the most of opportunities in national and cross-border payments
- Why do cross-border payments need to be improved? What efforts are being made to address the key challenges?
- CBDCs potential for improving cross-border payments efficiency
- What are possible CBDC design options open to central banks for enhancing cross-border payments?
- Examples of experiments and successful projects and initiatives
- Discussion: what are the next steps and key dynamics?
CBDCs: a driver for financial inclusion?
- Financial inclusion status within the AFI member countries – gains and opportunities
- Motivation for CBDCs in EDMEs and emerging use cases prioritized for financial inclusion
- CBDC as a driver for financial inclusion: addressing demand and supply side barriers and potential risks for prioritized use cases
- Discussion: – how to assess if CBDC is an appropriate tool to address financial inclusion gaps?
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?
Assessment of risks to financial stability from crypto-assets
- Vulnerabilities concerning unbacked crypto-assets
- Vulnerabilities concerning stablecoins
- Decentralised Finance (DeFi) and Crypto-asset Trading Platforms
- Data gaps
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?
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?
CBDC closing remarks and delegate action plans
Concluding session led by the chair
- 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
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