After announcing incentives for the development of blockchain-based applications, the World Economic Forum announced a »toolkit» to help governments around the world understand if the implementation of a CBDC would be advantageous and guide them in its design. The Forum collaborated with regulators, central bank researchers, international organizations and experts from more than 40 institutions to develop the structure.
“Given the critical role that central banks play in the global economy, any implementation of the central bank's digital currency, even potentially with blockchain technology, will have a profound impact nationally and internationally. (…) It is imperative that central banks proceed with caution, with a rigorous analysis of the opportunities and challenges posed, ”said Sheila Warren, director of blockchain and DLT at the World Economic Forum.
The kit divides CBDC into three categories: retail, wholesale and hybrid. The first category allows non-financial users to maintain accounts in digital currency, while the second is an electronic system that grants access to the central bank's reserve that commercial banks and other financial institutions can use for interbank and security transactions.
Hybrid CBDCs, on the other hand, allow financial institutions that normally do not have access to a central bank deposit mechanism to maintain reserves in it. According to the WEF, this would allow greater safeguards and monitoring of these organizations and improve interoperability between different payment systems.
“(The central bank) could delegate the approval of transactions in a more decentralized network, probably composed of regulated financial institutions. The approval of the transaction may follow a pre-specified consensus process, determined by the central bank, which may include privileges for the central bank, such as powers or visibility ‘veto’ of the transaction. It is also possible to develop a DLT system in which the central bank remains the only validation node, but benefits from other advantages related to DLT «. highlights the document.