Today the World Economic Forum published a report on wholesale central bank digital currencies (wCBDC). The paper briefly summarizes many of the wCBDC initiatives and hones in on top level use cases and how a wholesale CBDC could address long standing industry challenges.
At a high level, one of the main use cases is for interbank payments. That includes both domestic and cross border payments. In the latter case, a wholesale CBDC can serve as a settlement asset for Nostro accounts, supporting existing correspondent banking arrangements. Alternatively, it can provide a direct settlement instrument.
The other high level use case is for securities settlement, enabling delivery versus payment for tokenized or conventional assets. Additionally, a wholesale CBDC could be used as collateral.
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