EXPLORING CENTRAL BANK DIGITAL CURRENCY: EVALUATING CHALLENGES & DEVELOPING INTERNATIONAL STANDARDS - The Atlantic Council’s GeoEconomics Center and the Digital Dollar Project hosted a first-of-its-kind convening of leaders from international financial institutions, central banks, businesses, technology providers, and governments on November 28, 2023.
Over one hundred countries around the world are now exploring a Central Bank Digital Currency (CBDC) and there are approximately two hundred globally distributed stablecoins, most of which are backed by the U.S. dollar. This conference offered the first-of-its kind convening of international financial policymakers and launch new research on critical areas in this rapidly developing field. The goals of this conference are to level-set on the key technology and policy considerations before a country decides to develop a CBDC, outline areas of potential public-private cooperation, and create a roadmap to eventual global standards.
CBDCs and dollar-backed stablecoins are increasingly relevant to domestic and international financial infrastructure. However, in the absence of international standards, dozens of different models with varying degrees of safety, privacy, and efficiency are being built worldwide. As the issuer of the world’s reserve currency and “peg” of choice for 98 percent of all stablecoins, the United States should play a key role in international standard-setting regardless of whether the United States eventually issues a CBDC or not.
ORIGINAL AIRDATE: 11/28/23