Central banks across the world are considering, piloting, and in some cases have even launched CBDCs. Despite this, there is no consensus on what the philosophical purpose of a CBDC.
Before making the next moves with CBDCs, designers need to questions over what the purpose is of CBDCs, and ensure that they are not just a reactionary move from central banks to match crypto currencies.
Financial inclusion is a further consideration moving forward with CBDCs. The reality of moving forward in an increasingly digital world is that those without access to the internet or online payments which struggle with access.
CBDCs may result in more individuals’ private information being in one location, meaning that fears surround CBDCs over how they will deal with issues of privacy, and the linked security and AML problems.
The role of retail banks is something which also must be considered for what role CBDCs will play in the future. Is there the potential that CBDCs will displace the role of retails banks, or will they just provide better customer service for users.
As CBDCs become more of a reality, the practicalities of them must be considered. What exactly might a country gain from CBDCs, what role can they play in financial crime, and what area of the economy are they for.
- Níamh Curran - Reporter, Finextra [Moderator]
- Faisal Islam - Regtech/Fintech Advisor, Sentinels
- Lewis Sun - Global Head of Domestic and Emerging Payments, HSBC
- Brett Walton - Business Development Manager, Fluency