Raphael Auer

11 Jun, 7 tweets, 5 min read

Brand new survey -and thread - on #CBDCs beyond borders:
bis.org/publ/bppdf/bis…

There is considerable interest in the potential of CBDCs to improve #crossborderpayments - this is also included in the #G20-endorsed roadmap to improve #crossborderpayments. [1/n]

As part of the roadmap, a stocktake of provisional CBDC designs and experimentation was requested, lead by the CPMI and the @BIS_org Innovation Hub, in consultation with @IMFNews and @WorldBank. BIS Paper 116 contributes to this work...[2/n]

with a survey of 50 central banks’ initial thinking on cross-border use of CBDCs. Findings are:

1. There is a tentative inclination towards allowing use of a future CBDC by tourists and other non-residents domestically.

2. Central banks have a cautious approach... [3/n]

...to allowing use of a CBDC beyond their own jurisdiction, and concerns about the economic and monetary implications of cross-border CBDC use and about private sector global #stablecoins are taken seriously.

3. On The technological side, ... [4/n]

....28% of surveyed central banks are considering options to make CBDCs interoperable by forming multi-CBDC arrangements (#mCBDC). That we had laid our in previous work bis.org/publ/bppdf/bis… [5/n]

here, all three models are being considered. [6/n]

4. Finally, almost 14% of respondents are considering an active role for the central bank in FX conversion.

This is joint work with Codruta Boar, Giulio Cornelli, Jon Frost, Henry Holden, and Andreas (Tres) Wehrli. [7/, n=7]

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More from @RaphAuer

Raphael Auer

@RaphAuer

24 Aug 20

Rise of the #CBDC: we just published a major analysis of drivers, #technologies and policy approaches. bis.org/publ/work880.p… [some details/thread]

We start by measuring the stance towards issuance in #centralbank #communication. We investigates the cross-country drivers, the technologies central banks pursue, and their policy approaches. #money #innovation #DLT

We examine how #centralbanks are involving the private sector in CBDC design, whether they employ a #DLT-based infrastructure, whether they opt for account-based access or #privacy-preserving #tokens, and whether their focus is on domestic or international #payments.

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Raphael Auer

@RaphAuer

2 May 20

The idea to issue #cbdc dates back decades ago, but it is only since quite recently that some central banks are seriously considering this possibility. What are the reasons, what are the designs, and why now? Come with me...1/x

https://twitter.com/jerrybrito/status/1256605447919992838

First, note that the vast majority of central bank money is already digital - the sight deposits of commercial banks have at the central bank. But households and nonfinancial firms cannot access this money directly, only indirectly via the commercial banks. 2/x

Instead, physical cash is a direct claim on the central bank, and once its is in circulation, it can be exchanged directly without the need for intermediaries. 3/x

Read 10 tweets