BIS-CBDC

BIS CBDC framework central banks digital currency.

Definition

Key BIS CBDC publications: CPMI-IOSCO Principles for Financial Market Infrastructures (PFMI) applied to CBDC 2020, CBDC Foundational Principles (2020), Retail CBDC Public Goods (2022), Cross-border Multiple CBDC mCBDC framework (2022). Key design choices: (1) Wholesale CBDC (Banks and FIs only access, large value settlement, similar to remunerated reserves) vs Retail CBDC (general public access, similar to physical cash digital), (2) Token-based (anonymous holder) vs Account-based (KYC identification), (3) Interest-bearing (yield) vs Non-interest-bearing, (4) Two-tier (central bank issues, commercial banks distribute) vs Single-tier (central bank direct relationship), (5) Limited holding vs Unlimited. BIS 2023 Survey: ~134 central banks engaged CBDC research, ~24 retail CBDC pilots running, 11 launched (Bahamas Sand Dollar 2020, Nigeria eNaira 2021, Jamaica JAM-DEX 2022, ECCB DCash 2021, etc.). China Digital Yuan e-CNY largest pilot (~$13B transactions 2023).

Origin

BIS first CBDC reflection publications 2018 ; BIS CBDC Foundational Principles published 2020 by CPMI + 7 major central banks (Fed, ECB, BOE, BoJ, Riksbank, BoC, SNB) ; ~134 central banks engaged 2024.

Example in context

Central Bank of Nigeria issues eNaira (launched 25 October 2021), first retail CBDC Africa: token-based, two-tier (CBN issues + commercial banks distribute), KYC required, integration 2.4M users mobile wallet eNaira Speed App for P2P transfers + merchant payments.

Related terms

• ISO 20022 CBDC — messaging standard.