World Economic Forum publishes extensive study on CBDCs
The World Economic Forum (WEF) has published an all-encompassing white paper series on central bank digital currencies (CBDCs), discussing their role, impact, and risks in potential widespread deployment.
These reports were compiled by the Digital Currency Governance Consortium (DCGC) steering committee as the first step in providing a global perspective to address the challenges related to digital currency policies and governance. The report aimed to tackle three key areas, including regulatory and policy gaps, financial inclusion, and technological considerations.
The Digital Currency Governance Consortium (DCGC) is made up of more than 85 organizations representing various disciplines from public institutions, private companies, civil society, and academia. Members span six regions, including Asia, Africa, Europe, Middle East, North America, and Latin America / Caribbean.
Of the several topics, the study highlighted, one that gained the most attention was the relationship between CBDC and technology-based privacy. The report noted that 41% of all 8,200 comments received by the European Central Bank (ECB) during its consultation period were privacy-related.
The study noted that a wide acceptance of CBDCs will depend “in part on users’ trust in the privacy offered by CBDC”, arguing that privacy should be central to a CBDC design. However, the report acknowledged the inconsistencies in the definition of privacy, since privacy differs greatly depending on the country and culture.
Taking a technology-first approach, the guidelines recommended by the report could be “used to implement successful CBDC design that respects user privacy while reducing risk and meeting regulatory requirements.”
The whitepaper was a compilation of eight papers published in cooperation with WEF’s DCGC.
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