Central Bank Digital Currencies (CBDCs) should have a clear purpose and offer tangible benefits. Taking into account that many of these opportunities could also be achieved through the implementation of private money solutions, with appropriate regulation and supervision, central banks will need to assess the merits and risks of issuing CBDCs, and whether retail or wholesale solutions would be needed.
If central banks take the decision to issue a CBDC, an efficient and future-oriented partnership approach between central banks and the private sector will enable customers to hold CBDC with commercial banks or other regulated payment service providers that serve as user-facing intermediaries, managing accounts, customer service, compliance and other requirements.
Value-added services and interoperability of the CBDC with tokenized commercial bank money and other payment solutions will add further value to customers. In relation to new forms of digital money and to demands from different industry sectors, the financial industry investigates use cases for CBDCs and the role it could play.
It is important that any game-changing policy measure, such as the issuance of a digital euro, is carefully analysed following a cautious approach, as the ECB has done so far. The EFR position paper gives several recommendations that need to be taken into account for this analysis.