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Designing CBDCs for Seamless Integration with External DLTs: Strategies and Solutions

Designing CBDCs for Seamless Integration with External DLTs: Strategies and Solutions

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.

Lars Hupel

May 12, 2023

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  1. In 2023, over 20 countries will take significant steps towards

    piloting a CBDC. https://www.atlanticcouncil.org/cbdctracker/
  2. distributed ledger: append-only store of transactions which is distributed across

    many machines Xu et al.: Architecture for Blockchain Applications (2019)
  3. Assumptions 1 Central Banks do not care about specific DLT

    implementations. 2 Central Banks do not care about end-user operations. 3 Commercial players know better about customer needs. 4 DLTs evolve much faster than currency does.
  4. What do we gain? What do we need? Ability to

    experiment Stable currency Flexibility for new use cases Separation of concerns Regulatory control Standardization