Balancing public-private partnerships in a digital age: CBDCs, central banks and technology firms

Marianne Ojo

MPRA Paper from University Library of Munich, Germany

Abstract: What roles exist for public and private partnerships within the context of central bank digital currencies (CBDCs), in an increasingly digitalized global system? Do central bank digital currencies (CBDCs) serve as public goods rather than tools which should primarily remain within the realm and governance of private sector firms? What challenges or risks are presented through the use of CBDCs and how can such risks be mitigated through current existing structures - as well as models which have been propounded in relation to public – private partnerships? This paper aims to contribute to the literature on the topic through a consideration of several variants and models of CBDCs under which the public private partnership would function, namely the synthetic CBDC (sCBDC) and the two-tiered CBDC. Further, two other types of CBDCs, namely the wholesale CBDC and the retail CBDC will be distinguished - as well as the account based CBDC, which is contrasted to CBDCs based on digital tokens. Whilst concerns for privacy and security remain paramount and cannot be undermined, particularly from the perspectives of distributed ledger technologies (and blockchains – through which such platforms operate), such concerns need to be weighed against the need for identification since regulators will be better supported in their goals in enforcing the law, as well as identifying fraudulent operations, where sufficient identification procedures have been put in place

Keywords: CBDCs; synthetic CBDCs; two tiered CBDCs; retail CBDC; distributed ledger technologies; regulation; governance; anti trust; competition; financial stability (search for similar items in EconPapers)
JEL-codes: E58 F2 F64 G3 (search for similar items in EconPapers)
Date: 2021-05
New Economics Papers: this item is included in nep-ict, nep-mac and nep-pay
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Balancing public-private partnerships in a digital age: CBDCs, central banks and technology firms (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:107716

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