Central Banking magazine recently published its first survey of central bank digital currencies (CBDC). It explored numerous design features and found that a token-based model is the most popular (58%) where the currency would be stored in a digital wallet. That’s in contrast to an account-based design.
One of the respondents noted that their selection of token-based was because they wanted the CBDC to resemble cash rather than a bank deposit. A key issue with CBDC design is that in each country the local policy requirements will drive the design.
Some central banks seek to address the already reduced cash usage and broaden payment options currently concentrated with a few private players. On the flip side, some want to encourage less dependence on cash because of cost or physical distribution challenges such as in the Caribbean islands. Together these were motivations for just 17% of those surveyed, but still the biggest driver.
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