The Practitioners Perspective Panel discussion by Agustn Carstens - PowerPoint PPT Presentation

The Practitioner’s Perspective Panel discussion by Agustín Carstens General Manager, Bank for International Settlements The Workshop on Digital Currency Economics and Policy Singapore, 16 November 2018

Money Flower: a TV series 2

The Money Flower: a taxonomy of money The Venn diagram illustrates the four key properties of money: issuer (central bank or not); form (digital or physical); accessibility (widely or restricted); and technology (account-based or token-based). CB = central bank; CBDC = central bank digital currency (excluding digital central bank money already available to monetary counterparties and some non-monetary counterparties). Private digital tokens (general purpose) include cryptoassets and currencies, such as bitcoin and ethereum. Bank deposits are not widely accessible in all jurisdictions. For examples of how other forms of money may fit in the diagram, please refer to the source. Source: Based on M Bech and R Garratt, “Central bank cryptocurrencies”, BIS Quarterly Review, September 2017, pp 55–70. 3

Card payments and cash in circulation across the world Emerging markets, 2007-16 change, as a Advanced economies, 2007-16 change, as a percentage of GDP percentage of GDP Source: M Bech, U Faruqui, F Ougaard and C Picillo (2018): “Payments are a-changin’ but cash still rules”, BIS Quarterly Review, March 2018 , pp 67–80. 4

Card payments and cash in circulation in Sweden As a percentage of GDP 24 3 22 2 20 1 18 0 09 11 13 15 17 Lhs: Rhs: cash in circulation card payments Smart phone app (Swish) Source: CPMI Red Book and Swish statistics 2012-2017. 5

CBDC work Share of respondents Focus of work 1 Engagement in CBDC work 12 31 57 Wholesale CBDCs 20 40 60 80 100 General purpose CBDCs Yes No Both 1 Share of respondents who are conducting work on CBDC Sources: CPMI central bank survey on CBDC and digital tokens. 6

Type of CBDC work Share of respondents who are conducting work on CBDC 2018 Survey Over time 100 100 80 80 60 60 40 40 20 20 0 0 2017 2018 Research/ Study Experiments/ Development/ Proof of concept Pilot arrangement Research/Study Experiments / Proof of concept Sources: CPMI central bank survey on CBDC and digital tokens. 7

Likelihood of issuing a CBDC Share of respondents General-purpose CBDC Wholesale CBDC Short-term Short-term Medium-term Medium-term 0 20 40 60 80 100 0 20 40 60 80 100 Somewhat unlikely Very likely Somewhat likely Very unlikely Possible Sources: CPMI central bank survey on CBDC and digital tokens. 8