Central Bank Digital Currency CBDC

Overview:

Introduction:

Central Bank Digital Currency (CBDC) represents a transformative evolution in the financial system, redefining how money is issued, distributed, and utilized in the economy. This training program is designed to equip participants with a comprehensive understanding of CBDC, its underlying principles, implementation challenges, and implications for the financial ecosystem.

Program Objectives:

By the end of this program, participants will be able to:

• Explore the fundamentals and objectives of CBDC.

• Analyze the economic and financial implications of CBDC on monetary systems.

• Explore the technological and operational frameworks required for CBDC implementation.

• Assess the risks and opportunities associated with CBDC.

• Ensure alignment of CBDC implementation with legal frameworks and international regulatory standards.

Targeted Audience:

• Central bank officials and policymakers.

• Financial regulators and compliance officers.

• Banking and fintech professionals.

• Economists and financial analysts.

• Technology leaders and digital currency enthusiasts.

Program Outline:

Unit 1:

Fundamentals of CBDC:

• Definition and purpose of CBDC.

• Key differences between CBDC, cryptocurrencies, and stablecoins.

• Objectives and motivations for introducing CBDC.

• Overview of wholesale vs. retail CBDC.

• Benefits and potential drawbacks of CBDC.

Unit 2:

Economic Implications of CBDC:

• Impact on monetary policy and financial stability.

• Role of CBDC in promoting financial inclusion.

• Implications for traditional banking systems and intermediaries.

• Effects on cross-border payments and remittances.

• Addressing concerns about privacy and data security.

Unit 3:

Technological and Operational Frameworks:

• Key technologies underpinning CBDC: blockchain, distributed ledger, and cryptographic systems.

• Designing secure and scalable CBDC platforms.

• Interoperability with existing payment systems.

• Operational considerations for issuance and distribution.

• Leveraging fintech for CBDC implementation.

Unit 4:

Risks and Opportunities of CBDC:

• Identifying risks: cybersecurity, systemic risks, and operational challenges.

• Managing risks associated with CBDC adoption.

• Opportunities for innovation in payment systems.

• Enhancing transparency and combating financial crime.

• Strategies to build public trust and adoption.

Unit 5:

Regulatory and Policy Considerations for CBDC:

• Legal frameworks required for CBDC implementation.

• Role of central banks in ensuring CBDC governance and oversight.

• Addressing regulatory challenges in cross-border CBDC transactions.

• Ensuring compliance with international standards and best practices.

• Crafting policies to balance innovation with financial stability.