For several years, seven central banks have been collaborating on various retail central bank digital currency (CBDC) topics. Today the BIS and the central banks published papers on legal issues and CBDC system design.
The central banks involved are the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Board of Governors of the Federal Reserve System, Sveriges Riksbank and the Swiss National Bank.
One of the debates is about whether to adopt a centralized or decentralized model for a CBDC system. In a two tier system, one option is a hub-and-spoke model, where updates are under the control of the central bank but ownership of the data is spread. Alternatively, there could be a peer-to-peer design that involves sharing the authority for updates.
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