Visit nextdigitalbanking.com
Resources
See latest resources ยป
The future of digital retail payments in Europe: A role for central bank-issued crypto cash?

The future of digital retail payments in Europe: A role for central bank-issued crypto cash?

Source: ECB

In this paper, Citi's Ruth Wandhöfer investigates the changing role of money in retail payments and asks whether the introduction of a form of central bank cryptocurrency would be useful and what it could look like.

In the broader context of the arrival of distributed ledger technology (DLT) and in light of payments and regulatory innovation in the European market, this paper investigates the changing role of money in retail payments and the associated question as to whether central bank fiat currency risks to fall behind. Against this background, the paper asks whether the introduction of a form of central bank crypto currency (CBCC) – a central bank money based crypto retail payment method as a complement to physical cash - would be useful and explores what this could look like.

Such a new form of digital cash could be developed by building on DLT and cryptography, akin to the increasingly important space of private crypto currencies. In case of a central bank issued crypto cash equivalent, labelled ‘Euro-cryptocash’, key questions ranging from the involvement of banks and non-bank payment service providers, to privacy versus transparency, resiliency, efficiency and the role for consumer protection are discussed. As pressures on fiat currencies are increasing, the development of a form of ‘Euro-cryptocash’ is going to become an essential prerequisite for the future of the Eurosystem and the Eurozone. 

Read the paper:

Download the document now 360.7 kb (Chrome HTML Document)

Comments: (0)

capgemini world reports
Research resources
See all Research resources »
Central Bank Digital Currency and Monetary Policy
Research

Central Bank Digital Currency and Monetary Policy

A Bank of Canada investigation into the benefits and costs of issuing a central bank digital currency for monetary policy.

Data in the payments industry
Research

Data in the payments industry

The UK's Payment Systems Regulator starts a conversation on how data is used in payment systems and explores the potential barriers to its objectives.

Conversational commerce
Research

Conversational commerce

Mastercard previews the new opportunities for payments arising from advances in natural language processing and conversational commerce.