Central Bank Digital Currency (CBDC) is gaining traction as a digital version of cash issued by central banks. Several countries have already implemented a CBDC, and many others are actively investigating or piloting one. What’s clear is that most of these systems run on their dedicated infrastructure, rather than on public and/or existing blockchains. This creates interoperability challenges, such as how to transact with CBDCs from existing smart contract ecosystems. This talk aims to provide an overview of how CBDCs can be designed to address these challenges, and to provide practical examples of how integration with existing systems could be achieved.
How to integrate
CBDC with DLTs?
Strategies and Solutions
TUM Blockchain Salon
Central Bank Digital Currency
Banknotes Bank deposits
Issued by the
In 2023, over 20
piloting a CBDC.
append-only store of transactions which is
distributed across many machines
Xu et al.: Architecture for Blockchain Applications (2019)
Will CBDC run on DLT?
Does it matter?
Roles & Responsibilities in CBDC
Central Bank Intermediaries Users
Validation & Integrity
- 10 €
+ 10 €
Distribution & Custody
Payments & more …
Programmability in CBDC
(e.g. HTLC) (e.g. ERC-20)
CBDC & Smart Contracts
1 Central Banks do not care about specific DLT implementations.
Central Banks do not care about end-user operations.
3 Commercial players know better about customer needs.
DLTs evolve much faster than currency does.
Transacting CBDC directly
Bank A Bank B
Transacting CBDC in a Smart Contract
management Open APIs
What do we gain? What do we need?
Ability to experiment Stable currency
Flexibility for new use cases
Separation of concerns