The challenge

The increasing interest in CBDCs is undisputed, with many central banks looking to introduce digital currencies in the near future. With potential impacts on issues ranging from monetary policy transmission to financial stability and the smooth functioning of payment systems, CBDCs raise a number of potential questions that must be answered. 

To reduce risks, and to choose the right configuration, central banks must have a clear understanding of the impact of introducing a CBDC. 

The solution

FNA’s CBDC Simulation solution provides a comprehensive model of a nation’s payment systems. Users can then use this model to rapidly test multiple configurations to support the safe introduction of a CBDC, whilst maintaining the stability of its financial system and economy.

The benefits

FNA’s CBDC Simulation solution will allow central banks to:

  • Test multiple scenarios and central bank specific models to develop optimum CBDC configurations
  • Understand and measure potential risks across the cash cycle and associated financial networks
  • Simulate ‘shocks’ and stresses to the new and existing payment system
  • Base simulations on specific data research, historical data, synthetic data and more, for their jurisdiction
  • Provide clarity to participants as to exactly how a CBDC will affect their current ‘business as usual’ payment processing and choice of payment alternatives
  • Build a common understanding among stakeholders to improve decision making

 

Our expertise

  • We have over 20 years of unparalleled experience simulating payment systems and networks
  • FNA has worked extensively with central banks and financial authorities from G20 jurisdictions
  • Our subject matter experts have over 125 years of collective central banking experience
  • We have trained over 3,000 central bankers in supervisory technology (Suptech)
  • Our solutions are being used by systemically important banks, financial market infrastructures (FMIs) and challenger infrastructures
  • We have a strong record of collaboration with sectoral knowledge hubs such as Central Banking Publications, SEACEN, CEMLA & SWIFT Institute
  • We are regular contributors to leading industry & trade publications including the Wall Street Journal and Risk.net 
  • 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

Working with simulations

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 […]
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Using simulation to evolve financial systems
Today’s technology to make payments and settle transactions is more adaptable than ever.  Unlike in the 1980s, nothing appears to be hard coded anymore and our ability to configure applications provides us with endless flexibility.  Any of us who have worked in the requirements definition phase of a payment systems’ deployment in Financial Services will […]
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