#4: CBDC Motivations, Challenges, and Design Choices- A Perspective from the UK and Canada
28th April 2022
With:
| Francisco Rivadeneyra (Bank of Canada)
| Mehregan Ameri (Bank of England)
In this session, Dr. Francisco Rivadeneyra (Bank of Canada) and Mehregan Ameri (Bank of England) join FNA to discuss the strategic roadmaps for the "Digital Pound" and a potential digital Canadian dollar. As cash usage declines and private digital assets gain traction, G7 central banks are moving from theoretical research to rigorous design phases to ensure the public retains access to safe, risk-free central bank money.
The discussion focuses on the "Two-Tier" distribution model, where the central bank provides the core infrastructure while the private sector manages consumer-facing innovation. Our guests dissect the critical challenges of bank disintermediation, the necessity of "cash-like" privacy, and the role of CBDCs in enhancing the efficiency of both domestic and cross-border payments.In this session, FNA shifts the lens to Latin America to explore the "Inclusion-First" strategy of the region. Guests Ludmilla Buteau Allien (Bank of the Republic of Haiti) and Dr. Adolfo Sarmiento (Central Bank of Uruguay) join us to discuss how retail CBDCs can bridge the gap in regions with high informality and limited banking infrastructure.
Key Discussion Points:
The G7 Mandate: Aligning CBDC design with the 13 public policy principles for retail CBDCs established by G7 nations.
Contingency Planning: Why the Bank of Canada is building the capacity to issue a CBDC as a safeguard for monetary sovereignty.
The Platform Model: How the Bank of England envisions a "Digital Pound" that fosters competition among private-sector wallet providers.
Financial Stability Risks: Implementing design safeguards, such as holding limits, to prevent destabilizing outflows from commercial banks.
Privacy & Trust: Navigating the technical and legal requirements to provide an "acceptable degree of privacy" without enabling illicit activity
Watch on Demand:
Listen on: Spotify | Apple Podcasts | Amazon Music
Resources & Links:
e-Krona can be integrated into banks’ existing IT systems read more >
UK to bring stablecoins within payment regulatory perimeter read more >
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