Since the Bank of England first raised the concept of a central bank digital currency (CBDC) in its 2015 research agenda, the subject has gained considerable traction in the intervening five years.
The challenge facing central banks considering CBDC is how to use the insights gained from a decade of cryptocurrencies and what features are beneficial or harmful. CBDC is a form of central bank money and as such security is of the utmost importance. Our current work is focused on how to bring the benefits of programmability to CBDC without compromising security.
We have engaged with a number of central banks in an effort to understand their considerations and address them in our research when possible. Central banks regularly undertake research papers with external academics in a particular field, this work is in that tradition and, as with all academic research, does not imply endorsement of any policy position. The central banks are: Bank of Canada, European Central Bank, Federal Reserve, Bank of Japan, De Nederlandsche Bank and Monetary Authority of Singapore.