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Blockchain Implementation Method for Interoperability between CBDCs

Author

Listed:
  • Hyunjun Jung

    (Department of Software Convergence Engineering, Kunsan National University, Gunsan 54150, Korea)

  • Dongwon Jeong

    (Department of Software Convergence Engineering, Kunsan National University, Gunsan 54150, Korea)

Abstract

Central Bank Digital Currency (CBDC) is a digital currency issued by a central bank. Motivated by the financial crisis and prospect of a cashless society, countries are researching CBDC. Recently, global consideration has been given to paying basic income to avoid consumer sentiment shrinkage and recession due to epidemics. CBDC is coming into the spotlight as the way to manage the public finance policy of nations comprehensively. CBDC is studied by many countries. The bank of the Bahamas released Sand Dollar. Each country’s central bank should consider the situation in which CBDCs are exchanged. The transaction of the CDDB is open data. Transaction registers CBDC exchange information of the central bank in the blockchain. Open data on currency exchange between countries will provide information on the flow of money between countries. This paper proposes a blockchain system and management method based on the ISO/IEC 11179 metadata registry for exchange between CBDCs that records transactions between registered CBDCs. Each country’s CBDC will have a different implementation and time of publication. We implement the blockchain system and experiment with the operation method, measuring the block generation time of blockchains using the proposed method.

Suggested Citation

  • Hyunjun Jung & Dongwon Jeong, 2021. "Blockchain Implementation Method for Interoperability between CBDCs," Future Internet, MDPI, vol. 13(5), pages 1-14, May.
    • Handle: RePEc:gam:jftint:v:13:y:2021:i:5:p:133-:d:556659
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    References listed on IDEAS

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    1. Sara Saberi & Mahtab Kouhizadeh & Joseph Sarkis & Lejia Shen, 2019. "Blockchain technology and its relationships to sustainable supply chain management," International Journal of Production Research, Taylor & Francis Journals, vol. 57(7), pages 2117-2135, April.
    2. Kumhof, Michael & Noone, Clare, 2018. "Central bank digital currencies - design principles and balance sheet implications," Bank of England working papers 725, Bank of England.
    3. Raphael Auer & Philipp Haene & Henry Holden, 2021. "Multi-CBDC arrangements and the future of cross-border payments," BIS Papers, Bank for International Settlements, number 115, October –.
    4. Codruta Boar & Henry Holden & Amber Wadsworth, 2020. "Impending arrival - a sequel to the survey on central bank digital currency," BIS Papers, Bank for International Settlements, number 107, October –.
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    Cited by:

    1. Arman Abgaryan & Utkarsh Sharma, 2024. "IntraLayer: A Platform of Digital Finance Platforms," Papers 2412.07348, arXiv.org.
    2. Ilia Chapyshev & Ansel Shaidullin, 2024. "Study of the Problem of Interoperability of the Bank of Russia's Digital Currency," Russian Journal of Money and Finance, Bank of Russia, vol. 83(1), pages 104-126, March.
    3. Horst Treiblmaier, 2022. "What Is Coming across the Horizon and How Can We Handle It? Bitcoin Scenarios as a Starting Point for Rigorous and Relevant Research," Future Internet, MDPI, vol. 14(6), pages 1-15, May.

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