The IMF has published a detailed decision making framework for implementing central bank digital currencies (CBDC). It covers every phase of the process, from research and architecture all the way to widespread adoption. The IMF is already involved in more than thirty CBDC projects and intends to publish a handbook for CBDCs with 4-5 chapters published every year.
This framework highlights the key decisions for central bankers. Central bank mandates focus primarily on financial stability and other economic outcomes to varying degrees. As with traditional monetary policy, the development of a CBDC depends heavily on external factors. This could include shifts in consumer demands, international pressures from other digital currencies, and the ongoing digitalization of the financial sector.
Hence, the framework depends on a strong understanding of the external factors that might draw economies towards a CBDC. For advanced economies, the most important motivations typically include payment competitiveness and accessibility and ensuring the future effectiveness and autonomy of monetary policy in digitalized economies.
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