Central Banks Digital Currency - Opportunities and Innovation

Abstract

The issuance of a Central Bank Digital Currency (CBDC) is a very important step towards a fully digital economic environment and the consequences of such a direction are under debate by many policymakers around the world. There is a clear interest within the space as governments around the world are exploring the viability of a digital currency and according to the latest Bank for International Settlements (2021) report: 86% of the world's central banks have begun to conceptualize and research the potential of CBDC, 60% are developing Proof-of-Concepts (PoC) and 14% are implementing pilot projects. This paper provides a comprehensive overview for finance and investment participants about the topic of Central Bank Digital Currencies. The recent international exploration into the future of Central Bank money is complex as it is interconnected with two equally dynamic entities: Digital Currencies and Blockchain/Distributed Ledger Technology.