Friday, 26 June 2020

Bank of Canada: Designing a Central Bank Digital Currency (CBDC) for universal access


Key design matrix given by Bank of Canada on Central Bank Digital Currency (CBDC) based on universal access are

1. A CBDC should be as accessible as cash - 

A CBDC is a digital product that can be designed to include many of the attributes of cash (e.g., ease of use, portability, offline function).

2 Multiple formats for a CBDC can embody the design principles of universal access - 

The Bank is exploring multiple formats for a CBDC, including conventional online and mobile technologies, as well as custom devices and deviceless solutions.

3. A CBDC could be used through a dedicated universal access device (UAD) -

 One potential concept the Bank is investigating is a custom device that is engineered for universal access while securely storing and transferring a CBDC. The device could incorporate attributes of cash and take advantage of specialized technologies. Such a device should be manufactured at a low cost and issued by the Bank to ensure maximum inclusion.

4. A UAD could be resilient in ways that a smartphone is not - 

A UAD could embed a local, secure store of value, be network-independent and operate for long periods on a local power source.

Read on

Designing a CBDC for universal access

If the Bank of Canada issues a central bank digital currency, the technology should be designed for universal access.

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