<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This paper provides an overview of the distributed ledger technology (DLT) options available to central banks for issuing central bank digital currency (CBDC). We discuss the main requirements that a DLT solution must fulfill and analyze the various structures for implementation offered by DLT — public, permissioned and private — and the implications that each has for the central bank and the existing financial system. While a CBDC built on an open, permissionless system would provide the full functionality offered by DLT, it is also far more disruptive to the existing financial system and consequently requires more new infrastructure on the part of the central bank.</p>
</abstract>

This paper provides an overview of the distributed ledger technology (DLT) options available to central banks for issuing central bank digital currency (CBDC). We discuss the main requirements that a DLT solution must fulfill and analyze the various structures for implementation offered by DLT — public, permissioned and private — and the implications that each has for the central bank and the existing financial system. While a CBDC built on an open, permissionless system would provide the full functionality offered by DLT, it is also far more disruptive to the existing financial system and consequently requires more new infrastructure on the part of the central bank.

DLT Options for CBDC<sup><xref ref-type="fn" rid="j_jcbtp-2024-0004_fn_001">1</xref></sup>

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution 4.0 International License.

This paper provides an overview of the distributed ledger technology (DLT) options available to central banks for issuing central bank digital currency (CBDC)....

DLT Options for CBDC¹

Published Online: Jan 13, 2024

Page range: 57 - 88

Received: Feb 22, 2023

Accepted: Jul 11, 2023

DOI: https://doi.org/10.2478/jcbtp-2024-0004

Keywords
Central Bank Digital Currency (CBDC), Blockchain, Distributed Ledger Technology (DLT)

© 2024 Sky Guo et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

DLT Options for CBDC1

Published Online: Jan 13, 2024

Page range: 57 - 88

Received: Feb 22, 2023

Accepted: Jul 11, 2023

DOI: https://doi.org/10.2478/jcbtp-2024-0004

KeywordsCentral Bank Digital Currency (CBDC), Blockchain, Distributed Ledger Technology (DLT)

© 2024 Sky Guo et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

DLT Options for CBDC¹

Keywords
Central Bank Digital Currency (CBDC), Blockchain, Distributed Ledger Technology (DLT)