Global CBDC Challenge 2021 Report
The Monetary Authority of Singapore published a summary of the results of the Global Central Bank Digital Currency (CBDC) Challenge conducted in partnership with the International Monetary Fund, World Bank, Asian Development Bank, United Nations , and the Organization for Economic Co-operation and Development. The Challenge was aimed at identifying and developing retail CBDC solutions that increase payment efficiencies, improve financial inclusion and support the broader digitalization drive in the economy. The report goes through the Challenges various phases and includes highlights of the solutions presented by the 15 finalists during the Singapore Fintech Festival 2021 in November 2021 at which the three winning entries were selected. [Read more]
Central Bank Digital Currency Workshop, hosted by the CBDC Think Tank
The Central Bank Digital Currency Think Tank (CBDCTT) is hosting an in-person CBDC Workshop in Washington DC on February 24. It’s an intensive and hands-on CBDC course for central bank leadership and staff that are looking to understand and position for CBDCs. The workshop is a mix of lectures from CBDC experts and hands-on exercises. Certification of completion will be provided by the CBDCTT. Note that it is open only to central bank staff and finance ministries! [Register here] It will be followed by a Digital Currency Conference that will focus on technology and design aspects rather than policy and functionality issues.
Platform-based business models and financial inclusion
The Bank for International Settlements published a paper on digital platform economics. It found that digital platforms can dramatically lower costs and thereby aid financial inclusion – but these same features can give rise to digital monopolies and oligopolies. Digital platforms operate in multi-sided markets, and rely crucially on big data. This leads to specific network effects, returns to scale and scope, and policy trade-offs. To reap the benefits of platforms while mitigating risks, policy makers can: (i) apply existing financial, antitrust and privacy regulations, (ii) adapt old and adopt new regulations, combining an activity and entity-based approach, and/or (iii) provide new public infrastructures. The latter include digital identity, retail fast payment systems and CBDCs. These public infrastructures, as well as ex ante competition rules and data portability, are particularly promising. Yet to achieve their policy goals, the paper concludes that central banks and financial regulators need to coordinate with competition and data protection authorities. [Read more]
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