Selected Publications: Design Choices for Central Bank Digital Currency

17. Dezember 2020, von Pedro Magalhães Batista

Foto: LFT

Another interesting NBER's Working Paper published earlier this year was "Design Choices for Central Bank Digital Currency: Policy and Technical Considerations," written by Sarah Allen, Srđjan Čapkun, Ittay Eyal, Giulia Fanti, Bryan A. Ford, James Grimmelmann, Ari Juels, Kari Kostiainen, Sarah Meiklejohn, Andrew Miller, Eswar Prasad, Karl Wüst, and Fan Zhang - scholars affiliated to IC3, an initiative for the study of cryptocurrencies and contracts. The paper mostly discusses technical issues that policymakers should take into consideration when deciding for the adoption of CBDCs.

These technical issues would include the ledger infrastructure, account and identity management, digital wallets, privacy and transparency, smart contracts, and secure hardware. Moreover, the paper also gives attention to legal issues surround CBDCs such as jurisdiction, AML requirements and privacy, fraud and mistake (and the need for a dispute resolution scheme embedded in the CBDC infrastructure), liens, tracing, and taxation.

Professor James Grimmelman, one of the co-authors, joined us today to debate some of the legal issues during one of our LFT workshops. We will upload the recording in the next few days on our YouTube channel. Don't forget to subscribe to our channel and be notified when it goes up.