The challenge

Today, over 80 central banks are looking to introduce digital currencies in the near future. However, the impacts of Central Bank Digital Currencies (CBDCs) are still relatively unknown.

Many questions frequently cross the minds of central banks, regulators, banks and payment companies worldwide:

  • What impact will the introduction of a CBDC have on the financial and economic system?
  • Can CBDCs be configured without largely impacting the banking sector balance sheet?
  • Could card companies suffer a substantial decline in their transaction revenues?
  • Could financial inclusion increase by providing unbanked people access to CBDCs?

The solution

Built in partnership with Giesecke+Devrient, FNA’s CBDC Simulator delivers a flexible, agent-based model of any payment ecosystem. This enables regulators and financial system participants to rapidly test, model and simulate the economic and financial stability implications of introducing a CBDC.

 

 

The benefits

FNA’s CBDC Simulation solution will allow users to:

  • Test multiple policy inputs and specific CBDC models to understand potential impacts on different financial system parameters
  • Forecast and steer CBDC adoption  and predict payment behaviours
  • Quantify the expected impact of a CBDC on the disintermediation of bank deposits and financial inclusion
  • Provide clarity to participants as to how a CBDC will affect their current ‘business as usual’ payment processing and choice of payment alternatives
  • Simulate ‘shocks’ and stresses to the new and existing payment system (e.g. bank runs)
  • Build a common understanding among stakeholders to accelerate decision making

 

 

Our expertise

  • The CBDC Simulation solution has been built using over 20 years’ of research and experience simulating critical payment systems and networks
  • FNA has worked extensively with central banks and financial institutions from emerging and developed jurisdictions
  • Our CBDC subject matter experts have over 125 years of collective central banking experience
  • We have published numerous research papers on the topic of simulation and CBDCs, including Agent-Based Simulation of CBDCs, by Amanah Ramadiah, Marco Galbiati and Kimmo Soramäki
  • We are regular contributors to leading international & trade publications including the BBC, Wall Street Journal and Risk.net 
  • In 2022, FNA’s CBDC Simulation won the Digital Currency Award for Resilience 
  • Our expertise in central banking has also been recognized by a series of industry awards, including winning the G20 TechSprint, and twice winning the Central Banking FinTech & RegTech Global Award for Best Analytics Partner

More Solutions

Intraday Liquidity Optimization

Intraday Liquidity Optimization

Intelligent intraday liquidity optimization that reduces funding costs and payment delays
Find out more
Payment Simulation

Payment Simulation

Safely simulate the impact of design choices and changes to your financial systems
Find out more
Suptech

Suptech

Analyze and run models and simulations on large datasets to identify risks and anomalies
Find out more
National Security Solutions

National Security Solutions

FNA ensures you are the driving force behind your decisions, and ahead of your adversary thanks to advanced analytics and machine learning technology
Find out more

Working with simulations

Agent-Based Simulation of CBDCs
Agent-Based Simulation of CBDCs: A Research Paper by Amanah Ramadiah, Marco Galbiati and Kimmo Soramäki Central Bank Digital Currencies (CBDCs) have seized global attention, featuring broadly in central bank strategies.  Today, 87 central banks are currently looking to introduce digital currencies in the near future, however the impacts of CBDCs are still relatively unknown.  Many […]
Read more >
What is CBDC Simulation?
Author: Will Towning, Central Banks and Academia Programme Manager   What is CBDC Simulation?   The growth of Central Bank Digital Currencies (CBDCs), a fiat currency issued by a Central Bank in digital form, is undisputed. Nearly 70 different CBDCs are either under research, in development or in pilot phases across the world today. But […]
Read more >
Copyright FNA © 2022 | Privacy Policy