Digital Currencies beyond Borders: International Implications of CBDCs

Digital Currencies beyond Borders: International Implications
of CBDCs (June 30, 2021 | 17:00 - 18:30 CEST)

Today, cross-border payment systems are far from being frictionless and efficient. According to data by the World Bank, for cross-border payments, on average, more than 7% transaction fees are charged. Central bank digital currencies (CBDCs) have the potential to improve these international payment processes in various ways. At this point, standardization, harmonization and interoperability between domestic payment systems with possible different payment arrangements become strikingly important. A committed cooperation to build a bridge between multi-currency cross-border payments through an enhanced financial infrastructure with the design principles supporting privacy, security, fairness, efficiency, inclusivity, and legal compliance would bring about a promising solution. Additionally, international implications of CBDCs need to be further studied as CBDCs could impact exchange rates, international capital flows, and, in general, also the supremacy of specific currencies.

In particular, in this webinar, we focus on the international dimension of CBDCs and, amongst others, address the following questions:

  • What is the potential of CBDCs in improving today’s cross-border payment systems?
  • In which ways can the interoperability of multiple domestic CBDCs be achieved?
  • What are the international implications of CBDCs?
  • How could CBDCs impact worldwide capital flows and exchange rates?
  • Which CBDC design principles may impact the international implications of CBDCs?
  • In which ways can an interoperable multi-currency financial infrastructure be built upon the best CBDC design principles?

Panelists

  • Dr. Jon Frost, Senior Economist, Bank for International Settlements
  • John Velissarios, Global Managing Director Blockchain and Multiparty Systems, Digital Assets, Custody & CBDC Lead, Accenture
  • Dr. Taojun Xie, Senior Research Fellow, National University of Singapore
  • Ashley Lannquist, Project Lead, Blockchain & Digital Currency, World Economic Forum
  • Jonas Gross, Co-founder, and member, Digital Euro Association (DEA)

Find out more here.


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The Future of Central Bank Digital Currencies (CBDC): Should the ECB issue a Digital Euro?

The publication of the first Libra white paper in June 2019 was a wake-up call for central banks around the world. Many of them started to intensify their efforts regarding the issuance of an own central bank digital currency (CBDC). According to a study conducted by the Bank for International Settlements (BIS), 80% of central banks worldwide are currently working on a CBDC. First projects have been launched, such as the Sand Dollar in the Bahamas. Others, such as China, are actively testing their CBDC called DC/EP. The European Central Bank (ECB) is also looking into the possibility of introducing a CBDC for the Euro Area, the digital euro. Therefore, a digital euro might become reality in a few years.

In this webinar, we focus on the digital euro project and address the following questions:

  • Do we need a digital Euro?
  • If yes, why? What are the use cases of a digital Euro?
  • Which role should the private sector play?
  • What could be a timeline for the ECB to issue a CBDC?
  • How advanced is the ECB in the development of a digital Euro? When should we expect to see a Euro-CBDC?
  • What are the consequences of delayed action by the ECB?

Panelists

  • Alexander Bechtel, Digital Euro Association
  • Lena Grale, Digital Euro Association
  • Prof. Dr. Peter Bofinger, University of Würzburg
  • Dr. Jürgen Schaaf, European Central Bank
  • Julien Le Goc, Diem Association
  • Miguel Ángel Fernández Ordóñez, former governor of the Bank of Spain

Click here to watch the Panel discussion