#9: What CBDC Features Will Drive Consumers’ and Merchants’ Adoption?

CBDC Broadcast

13 Sept

29th September 2022

With:

| John Velissarios (Accenture)

| Raoul Herborg (Giesecke + Devrient)

In this session, John Velissarios (Accenture) and Raoul Herborg (Giesecke+Devrient) join FNA to explore the delicate balance between high adoption and financial stability. If a CBDC is too successful, it risks draining commercial bank deposits; if it fails to gain traction, it creates a reputational vacuum for the central bank.

The discussion focuses on making CBDC a "digital version of cash" that is instant, secure, and accessible to everyone—regardless of their tech-savviness or internet connectivity. Our guests emphasize that for banked populations who are already satisfied with digital payments, a CBDC must offer unique value, such as consecutive offline payments, enhanced privacy, or a "public good" guarantee of safety that private platforms cannot match.

Key Discussion Points:

The Stability Tightrope: Designing a system that attracts users without triggering a mass migration of deposits away from commercial banks.
Universal Inclusivity: Overcoming the digital divide by ensuring CBDC is accessible to the unbanked and the elderly through intuitive hardware like smartcards.
Global Standards: The role of central banks in creating interoperable protocols that prevent "digital silos" and enable cross-border retail use.
The "Offline" Advantage: Why the ability to pay without a network is the "killer feature" that bridges the gap between digital convenience and the reliability of cash.
The Value Proposition: Identifying what truly drives a consumer to choose a CBDC over a credit card or a digital wallet.

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