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Implementing a retail CBDC: Lessons learned and key insights

Author

Listed:
  • Morales-Resendiz, Raúl
  • Ponce, Jorge
  • Picardo, Pablo
  • Velasco, Andrés
  • Chen, Bobby
  • Sanz, León
  • Guiborg, Gabriela
  • Segendorff, Björn
  • Vasquez, José Luis
  • Arroyo, John
  • Aguirre, Illich
  • Haynes, Natalie
  • Panton, Novelette
  • Griffiths, Mario
  • Pieterz, Cedric
  • Hodge, Allister

Abstract

Motivations for introducing a retail central bank digital currency (CBDC) could range from a rapid decline in the use of physical cash or financial inclusion strategies to an underdeveloped retail payment market. The COVID-19 pandemic and the emergence of global stablecoins proposals have heightened the interest in exploring the introduction of a rCBDC. With the aim of informing these efforts before, during and after its potential implementation, we explore recently launched pilots in three jurisdictions. We aim to provide relevant lessons on the design, operation and implementation of such a new digital form of fiat money. Notably, despite differences among jurisdictions and CBDC pilots, a series of key insights emerge from these experiences that could be useful for those thinking to launch a rCBDC.

Suggested Citation

  • Morales-Resendiz, Raúl & Ponce, Jorge & Picardo, Pablo & Velasco, Andrés & Chen, Bobby & Sanz, León & Guiborg, Gabriela & Segendorff, Björn & Vasquez, José Luis & Arroyo, John & Aguirre, Illich & Hayn, 2021. "Implementing a retail CBDC: Lessons learned and key insights," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 2(1).
    • Handle: RePEc:eee:lajcba:v:2:y:2021:i:1:s2666143821000028
    DOI: 10.1016/j.latcb.2021.100022
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    References listed on IDEAS

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    Cited by:

    1. Van Roosebeke, Bert & Defina, Ryan, 2022. "Central Bank Digital Currencies: A Review of Operating Models and Design Issues," MPRA Paper 116240, University Library of Munich, Germany.
    2. Ngo, Vu Minh & Van Nguyen, Phuc & Nguyen, Huan Huu & Thi Tram, Huong Xuan & Hoang, Long Cuu, 2023. "Governance and monetary policy impacts on public acceptance of CBDC adoption," Research in International Business and Finance, Elsevier, vol. 64(C).
    3. Sarmiento, Adolfo, 2022. "Seven lessons from the e-Peso pilot plan: The possibility of a Central Bank Digital Currency," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 3(2).

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