Improving G20+ Monetary Cooperation In The Era of CBDCS

CBDCs are still a project in the making, but there are many doubts about the economic, political, and societal implications of this dramatic change in the representation of money. These uncertainties stem from the various policy goals, operational models, design features and technology choices available to monetary authorities. Beyond the domestic challenges of designing and implementing CBDCs, however, there are concerns about their broader impact on cross-border capital flows, financial stability, and international monetary relations. This Policy Brief analyses the general state of play of e-currencies to understand the main policy developments and identify key risks ahead; discusses the relevance of the G20 and assesses the main coordination channels available at the multilateral level; and proposes ways to improve monetary cooperation among G20 countries. The brief calls on the G20 to provide expertise for countries trying to design their CBDCs and help smoothen the interoperability aspects of countries’ different schemes.