What will it take for CBDCs to be successful?
By Aliya Shibli for The Banker
Central Banks around the world are exploring Central Bank Digital Currencies (CBDCs). But how do we know what their impacts will be?
Speaking to The Banker, our Director of Financial Market Infrastructures and Digital Currency Solutions, Carlos León, discussed how FNA’s CBDC simulation solution is able to rapidly test, model and simulate the economic and financial stability implications of different CBDC designs.
The modelling explores factors like interest rates, anonymity, understanding user needs, and iterating designs to balance adoption and stability.
Carlos notes that digital twins of payment systems allow stakeholders to gain valuable insights before deployment.
While simulations can illuminate potential adoption patterns and trade-offs, many open questions remain around CBDCs. As central banks progress, we believe an open exchange of ideas and perspectives will be valuable in informing thoughtful policy and technical decisions.
