The Case for a Wholesale Central Bank Digital Currency Architecture

Mohammad Hamdy (S.J.D.)
This Policy Brief was first published in https://t20ind.org


Among the countries currently considering issuing a central bank digital currency (CBDC), including nearly all of G20, there is a strong preference for a retail CBDC made available to the general public through private intermediaries. This Policy Brief sheds light on the technical complexities and financial risks associated with such a design, and suggests that it may not effectively contribute to the realisation of the goals outlined in the 2020 G20 Roadmap for Enhancing Cross-border Payments (G20 Roadmap or Roadmap), at least in the foreseeable future. The brief makes a case for a wholesale CBDC system as an alternative that avoids these problems and thus is more technically and politically feasible, making it more aligned with the G20 Roadmap. The brief offers recommendations on how the G20 can support a wholesale CBDC architecture globally in light of the numerous benefits that CBDCs can bring to cross-border payments.


Mohammad Hamdy (S.J.D.)

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