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

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Related news & events

The CBDC Broadcast Session #8
Aligning Technology with Policy: A look at the recent Oliver Wyman Forum and Amazon Web Services (AWS) Report Wednesday 10th August 2022, 14:00 (BST)   In previous sessions of The CBDC Broadcast, we focused on the many motivations for rolling out a CBDC, from achieving higher financial inclusion and higher transactional efficiency to preserving monetary […]
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FNA Wins Currency Research’s Digital Currency Award for Resilience
  FNA is proud to announce that our CBDC Simulation solution received the Digital Currency Award for Resilience at the Currency Research awards presentation on 24th February. FNA’s CBDC Simulation solution, developed in partnership with Giesecke+Devrient (G+D), aims to counter the uncertainty surrounding Central Bank Digital Currencies (CBDCs) by helping central banks, government authorities and […]
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