Education is Key in CBDC Development

Attending the recent Banknote and Currency Conference as well as the Digital Currency Conference in Washington, DC, I gathered these takeaways on the status of cash and CBDCs.

1. Banknote people are very interested in CBDCs but are wary that CBDCs threaten cash. Part of this concern stems from the idea that CBDCs are an all-or-nothing proposition. I and many other speakers argued that CBDCs and cash would operate together for quite some time. In my opinion, banknote producers need to look for opportunities that CBDC development might present for them.

2. Central banks are not convinced that CBDCs are in their future, but they want to be up to date and ready to release a CBDC if told to do so. I heard this from both central bankers and the few blockchain developers that were at the conferences. This makes perfect sense and is very wise.

3. Everyone is still trying to break the mindset that there’s only one or two ways to do a CBDC instead of a multiplicity that need to be tailored to specific needs. Given all the high-level studies over the years, CBDCs are often seen as monolithic monsters that will steamroller cash and other payment platforms. Again, I and other speakers tried to show that this is not the case.

In short, education and discussion are really vital right now for banknote producers, central bankers, and CBDC developers.