CBDC Round-Up

CBDCs a Positive Option for Storing Value

A technical article by Manuel Muñoz and Oscar Soons, unusually, considers the role of CBDCs as a store of value instrument for consumers ¹.

Its finding is that there would be a degree of bank disintermediation. However, lending would fall less than one-for-one against deposits and relative maturity- transformation increases. Even with some disintermediation, social welfare increases in a wide range of relevant cases because of the powerful benefits of increasing the efficiency of storing public money in an environment characterised by disagreements about banks’ stability.

Indian CBDC to Test Programmability and Offline Capability

India, which has been testing a retail CBDC since early 2023, is adding programmability to the programme. This will enable transactions for specific and targeted purposes, for example allowing specific expenditure such as business travel for employees.