Disponible en Español

Course on Central Bank Digital Currencies (CBDC)

October 14 - 18, 2024
Videoconference

The CEMLA, in collaboration with the Institute for Capacity Development (ICD) of the International Monetary Fund, organized a virtual Course on Central Bank Digital Currencies (CBDC) from October 14 to 18, 2024. The course was attended by 32 representatives from 16 CEMLA member institutions and partners, spanning 16 countries.

The course began with an overview of CBDCs, focusing on the key distinctions between account-based and token-based models. Participants explored the varying stages of CBDC development across different countries, ranging from early research initiatives to those with established official CBDCs.

On the second day, discussions centered on the role of money in society and the potential functions of a CBDC. Key topics included its potential to compete with or replace existing forms of money, and the technological trade-offs of distributed ledger technology (DLT), which seeks to balance decentralization, security, and scalability—where typically only two of these features can be maximized simultaneously.

The third day introduced two hypothetical scenarios: the first examined the possibility of CBDCs leading to financial disintermediation, while the second considered the impact of CBDCs during a banking crisis, including their role in a potential bank run. Other topics included digital dollarization risks and the cybersecurity challenges associated with CBDCs.

On the fourth day, the course focused on the implications of CBDCs for monetary policy transmission, analyzing how they might influence interest rates, bank lending, credit availability, and exchange rates. The session also addressed the balance between privacy and financial integrity, noting that in most cases, one tends to be prioritized over the other. The day concluded with a discussion on the relationship between CBDCs and financial inclusion.

The final day was dedicated to the potential use of CBDCs in cross-border payments. The importance of early coordination—both technical and regulatory—among participating countries was highlighted as crucial to the success of such initiatives.

Activities