The readiness of blockchain enabled payment solutions has made significant progress. Blockchain now addresses residual concerns about scalability and inter-operability and therefore offers the foundation for advancing towards select real-life applications and implementation plans.
The greatest benefits of CBDC are to be found in the broader context of reshaping payments relations and rests in the integration of assets and currency on a single ledger in the combination of tokenization, decentralization and secure information sharing. CBDC attracts payment applications in retail, wholesale and cross-border transactions. Considerations differ largely dependent on local circumstances and preferences. The adoption of CBDC will depend on set policy objectives.
Central banks can play a major role in shaping the new landscape since they maintain the unique—and essential— convening power needed to bring together disparate players in the financial sector. This will minimize fragmentation in the market and establish a strong foundation.