Today’s consumers expect efficiency and ease in all their interactions, especially when making a purchase. Methods of moving money are evolving to keep pace with changing consumer expectations. Security and reliability are fundamental to payments, and they must be the foundation of new innovations.
As more central banks explore the implications of building their own Central Bank Digital Currencies (CBDC), each individual central bank will be confronted with an obvious challenge: they are not the only ones. We envision and evaluate scenarios of how various CBDC networks could operate around the world.
The experience of Bangladesh can offer insights, practices, and lessons learned that could be applicable to other developing countries.
Policymakers should promote a diverse and open payment landscape where all players commit to security and resilience.
The private and public sectors should work together to digitize remittances from end to end, so receivers can use funds digitally in their everyday lives.
Central banks want to make central bank digital currency work offline (just as banknotes do), and this research shows how that can be done in a secure and compliant manner.
A jobs recovery and a continued focus on money movement efficiency will be key to remittance recovery when the pandemic subsides.
Policymakers can work with the private sector to foster an innovative, open, and resilient payments ecosystem.
