Central bank digital currencies: An active role for commercial banks

Olivier Denecker, Arnaud D’Estienne, Pierre-Matthieu Gompertz and Elia Sasia
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Olivier Denecker: Expert Partner — Global Payments, McKinsey & Company, Belgium
Arnaud D’Estienne: Consultant, McKinsey & Company, France
Pierre-Matthieu Gompertz: Former Associate Partner, McKinsey & Company, The Netherlands
Elia Sasia: Partner, McKinsey & Company, Italy

Journal of Payments Strategy & Systems, 2023, vol. 17, issue 1, 26-35

Abstract: With most central banks now exploring central bank digital currencies (CBDCs), commercial banks should be looking to establish their role in this fast-changing landscape. Among the roughly 90 per cent of the world’s central banks pursuing CBDC projects, many, including those in the USA and South Africa, are at the exploratory phase. Others are already managing development projects (the European Union) and pilots (China). The various imperatives behind these initiatives are easy for private actors in these markets to overlook, which sometimes complicates private–public cooperation. However, digitally issued public money stands at the forefront of central bank innovation in the monetary space. This paper reviews why central banks need to explore digital currencies and what questions they should address. It also sheds light on what commercial banks need to consider as they anticipate their stance in the CBDC development process. For both parties, the final section outlines the hurdles to successful CBDC design and rollout.

Keywords: CBDC; digital currency; central banks; commercial bank cooperation; cash 2.0 (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2023
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