CBDCs: Management, Issuance and Regulatory Frameworks 2022a

CBDCs: Management, Issuance and Regulatory Frameworks

CBDCs: Management, Issuance and Regulatory Frameworks

March 7 – 10

Live Content sessions held: 8am–12pm (EST) | 1pm–5pm (GMT) | 9pm–1am (SGT) 

Chair: Klaus Löber, chair of the CCP supervisory committee at European Securities and Markets Authority (ESMA)

For those in the market, policy-makers and central bankers alike the question of CBDC is no longer ‘if’ but ‘when and ‘how’.

Increasingly regulators and observers acknowledge that digital currencies represent an opportunity to improve efficiency in payment systems, enable faster and better cross border payments, and expand financial inclusion.

Yet, while central bankers explore digital currencies and stablecoins they naturally have reservations. What will CBDC issuance mean for monetary policy? What will banks’ involvement be? Will there be an impact on financial stability? Questions around issuance, regulation and data soon crowd in.

This course is designed to equip central bankers to meet these challenges.

Each day will feature three hours of expert-led Live Content to maximise the opportunity to share and learn. The chair will ensure participants have opportunities to network throughout the course, with time set aside for a workshop on implementing key learnings.

View chair letter

 

Course agenda

Two weeks prior to your training course you will be emailed access to our content hub with course materials, including a trial to Central Banking if you are not already subscribed. There will be a combination of articles, reports and presentations that will contribute to two hours of preparation time for the live content. Presentations for the sessions will also be held here subject to the speaker approval.

The challenges and implications of central banks issuing digital currencies

13:0013:30

Course introduction
Course introduction session led by the chair

13:00 - 13:30

  • Introductions and welcome from the chairperson
  • Overview of the training course
  • Discussion of the delegate expectations
Klaus Löber

Chair, CCP supervisory committee

European Securities and Markets Authority (ESMA)

Klaus Löber is the Chair of the CCP Supervisory Committee (CCP SC) in ESMA, which was established in 2020. His areas of responsibility encompass the tasks attributed by the European Market Infrastructure Regulation (EMIR) to the CCP SC, in particular the enhanced supervisory convergence towards EU CCPs and ensuring a resilient CCP landscape in the EU as well the monitoring and supervision of CCPs established in third countries in view of the risks that they may pose to the EU financial system. He is also chairing the ESMA CCP Policy Committee contributing to the EU Single Rule Book in the area of CCPs.

Prior to this role, Mr Löber was the Head of the Oversight Division of the European Central Bank in charge of the oversight of financial market infrastructures, payments instruments and schemes. Earlier positions include the Head of the Secretariat of the Committee on Payments and Market Infrastructures, the global standard setting body in the area of payments, clearing and settlement as well as positions in the European Commission, Deutsche Bundesbank and private practice.

Mr Löber regularly publishes on financial markets legal, regulatory and infrastructure issues and lectures at universities.

13:3014:30

CBDCs in 2022: the state of the art

13:30 - 14:30

  • Defining and understanding the differences (and similarities) between CBDCs, stablecoins and crypto assets
  • What are the different use cases of CBDCs?
  • Overview of implications for central bankers, regulators and supervisors
  • Discussion: what are the next steps and key dynamics?
Rita Soares

Head of payment innovation and policy division

Bank of Portugal

Rita is currently responsible for the Payments Innovation and Policy Division from the Payments System Department at Banco de Portugal.

Her main tasks include the assessment of the compliance, by Payment Service Providers, of the technical requirements for the new payment services introduced by the Revised Payments Services Directive; the assessment of digital transformation in the provision of payment services; and the interaction with Fintech entities. She is responsible for the Operational Team of Portugal FinLab, a communication channel between entities with innovative projects in the financial sector and the Portuguese regulatory authorities. She is also a member of the secretariat of the High Level Task Force in charge of the digital euro project.

Prior to this, Rita has been a senior economist in the monetary policy implementation division from the Markets Department at Banco de Portugal. 

She holds a degree in Economics and a MSc in Monetary and Financial Economics.

 

14:3014:45

Break

14:30 - 14:45

14:4515:45

Stablecoins: risks, vulnerabilities, and FSB recommendations

14:45 - 15:45

  • Overall summary of crypto-assets financial stability risks
  • Risks to financial stability from non-stablecoin cryptos
  • Vulnerabilities concerning stablecoins
  • Decentralised Finance
  • Global stablecoins

15:4516:15

Networking break
An opportunity to share experiences with your fellow participants.

15:45 - 16:15

16:1517:15

The potential impact of stablecoins on monetary policy

16:15 - 17:15

  • What are the implications of stablecoins for the implementation of monetary policy?
  • Do they impact the transmission channel?
  • Are retail CBDCs the solution?
Aleksi Grym

Head of fintech

Bank of Finland

Aleksi Grym is Head of Fintech at the Bank of Finland. He leads a team that manages a portfolio of projects related to fintech, new payment technologies and digital currencies. He is a member of the Eurosystem's digital euro project steering group. Before joining the Finnish central bank he worked in the consulting and technology investment industry for 15 years in London and Helsinki.

Use of CBDCs to improve payment systems

13:0014:00

Making the most of opportunities in national and cross-border payments

13:00 - 14:00

  • Why do cross-border payments need to be improved? What has been learned from previous efforts?
  • CBDCs potential for improving cross-border payments efficiency (comparison also with so-called stablecoin initiatives)
  • Examples of experiments and successful projects and initiatives
  • Discussion: what are the next steps and key dynamics?
Adolfo Sarmiento

Head of economic consultancy, advisor to the board

Central Bank of Uruguay

Adolfo Sarmiento is Head of Economic Consultancy, advising to the board at the Central Bank of Uruguay, he is responsible for Financial Stability and Economic Research and coordinator of the FinTech Group for the financial system in the country. As advisor he is also involved in the negotiation of MERCOSUR financial services issues and in Risk evaluation of the financial system.
He holds a degree in Economics of the University of the Republic of Uruguay, a Master in Applied Macroeconomics of the Catholic University of Chile and is PhD (Candidate) for the Catholic University of Argentina. 
 

14:0014:15

Break

14:00 - 14:15

14:1515:15

CBDC design principles: decision making: the need for cross-jurisdictional thinking

14:15 - 15:15

  • What is the Bank of Canada doing?
  • What is the coalition of central banks doing
  • What are some of the key considerations in designing a CBDC
  • Discussion: what CBDC design elements would most benefit from cross-border consideration?

15:1515:30

Break

15:15 - 15:30

15:3016:30

Stablecoins and CBDCs: a driver for financial inclusion?

15:30 - 16:30

  • Overview financial inclusion strategies
  • Risks and opportunities for financial inclusion policies and strategies
  • Effective regulation in order to facilitate the potential digital money for financial inclusion
  • Discussion: to what extent should stablecoins and/or CBDCs be incorporated into financial inclusion strategies?
Abhaya Prasad Hota

Former head of payment systems

Former Reserve Bank of India

Abhaya Prasad Hota, - former Head of Payment Systems in Reserve Bank of India is known for his valuable contribution in design and development of payment system in India. After his central banking experience for 27 years mostly in the area of payments and technology, he headed the umbrella retail payments institution named National Payments Corporation of India (NPCI) during 2009-2017 as its founding CEO. NPCI today handles 10 out of 13 types of retail payment systems in the country accounting for almost 80 percent of all  inter-bank retail payment transactions.  He played the key role in building the real time 24x7 retail money transfer system ( handling 110  million transactions  a day), domestic card payment system (the largest in the country in terms of number of cards issued in the country) and identity based Direct Benefit Transfer system  ( all government subsidies for social welfare programs passing through this DBT system).

Currently he serves as an Independent Director in the Boards of a few organisations in the area of banking and finance and speaks at various fora on design and development of national level payment system. During the year 2018-19, he was also in the World Bank Panel of Experts on Payment Systems.

Analysing the role of central banks in digital currencies

13:0014:00

If CBDCs are the solution, what is the problem?

15:45 - 16:45

  • What are the issues that CBDCs need to address?
  • Why would central banks issue a retail CBDC?
  • Why would central banks issue a wholesale CBDC?

14:0014:15

Break

14:15 - 14:30

14:1515:15

Role of private sector with regards to CBDC usage

14:15 - 15:15

  • Are public/private partnerships useful for CBDC development?
  • What is the current role of the private sector in CBDC experimentation?
  • What are the areas in which private sector implementation can be most useful (e.g. AML/CFT, payment system)?
  • Discussion: should central banks be granted a monopoly for the issuance of digital currency?

15:1515:45

Networking break
An opportunity to share experiences with your fellow participants.

15:15 - 15:45

15:4516:45

Legal aspects of issuing a CBDC

13:00 - 14:00

  • What are the key legal issues?
  • CBDC design: account-based vs. token-based approaches
  • Can CBDCs be granted “currency” status?

Use of technology platforms for CBDC

13:0014:00

Technology platforms for CBDCs

13:00 - 14:00

  • What are the technology options for a CBDC? How should central banks go about choosing the technology – is interoperability a relevant consideration?
  • Is DLT necessary – could a centralised platform also work?
  • How do central banks keep pace with new technologies if they issued their own CBDC?
William Lovell

Head of future technology

Bank of England

I am Head of Future Technology and I focus on looking at how the next generation of technology, and the generation after that will change financial services.  I spend much of my time working on the renewal of central bank digital currency and the renewal of UK RTGS.  My background is in engineering, so I like to keep a practical focus but I also work with those developing policy.

14:0014:15

Break

14:00 - 14:15

14:1515:15

Understanding implications for financial stability and monetary policy

14:15 - 15:15

  • Overview of considerations regarding the introduction of CBDCs as an instrument for monetary policy
  • Interactions of CBDCs for interest rates and quantitative easing
  • Examples of risks and opportunities of introducing CBDCs – comparison with El Salvador

15:1515:30

Break

15:15 - 15:30

15:3016:15

Closing remarks and delegate action plans
Concluding session led by the chair

15:30 - 16:15

  • Summary of the course
  • Discussion of the observed trends and case studies
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points
Klaus Löber

Chair, CCP supervisory committee

European Securities and Markets Authority (ESMA)

Klaus Löber is the Chair of the CCP Supervisory Committee (CCP SC) in ESMA, which was established in 2020. His areas of responsibility encompass the tasks attributed by the European Market Infrastructure Regulation (EMIR) to the CCP SC, in particular the enhanced supervisory convergence towards EU CCPs and ensuring a resilient CCP landscape in the EU as well the monitoring and supervision of CCPs established in third countries in view of the risks that they may pose to the EU financial system. He is also chairing the ESMA CCP Policy Committee contributing to the EU Single Rule Book in the area of CCPs.

Prior to this role, Mr Löber was the Head of the Oversight Division of the European Central Bank in charge of the oversight of financial market infrastructures, payments instruments and schemes. Earlier positions include the Head of the Secretariat of the Committee on Payments and Market Infrastructures, the global standard setting body in the area of payments, clearing and settlement as well as positions in the European Commission, Deutsche Bundesbank and private practice.

Mr Löber regularly publishes on financial markets legal, regulatory and infrastructure issues and lectures at universities.

Learning outcomes

At the conclusion of the training, participants will be able to:

  • Develop strategies for effective issuance of CBDC
  • Understand the implications of CBDCs on financial stability and monetary policy
  • Assess the legal implications of crypto assets and digital money
  • Assess the opportunities for improving cross-border payments and financial inclusion
  • Design a cost-benefit analysis of digital money with a focus of systemic oversight

Klaus Löber

Chair, CCP supervisory committee

European Securities and Markets Authority (ESMA)

Klaus Löber is the Chair of the CCP Supervisory Committee (CCP SC) in ESMA, which was established in 2020. His areas of responsibility encompass the tasks attributed by the European Market Infrastructure Regulation (EMIR) to the CCP SC, in particular the enhanced supervisory convergence towards EU CCPs and ensuring a resilient CCP landscape in the EU as well the monitoring and supervision of CCPs established in third countries in view of the risks that they may pose to the EU financial system. He is also chairing the ESMA CCP Policy Committee contributing to the EU Single Rule Book in the area of CCPs.

Prior to this role, Mr Löber was the Head of the Oversight Division of the European Central Bank in charge of the oversight of financial market infrastructures, payments instruments and schemes. Earlier positions include the Head of the Secretariat of the Committee on Payments and Market Infrastructures, the global standard setting body in the area of payments, clearing and settlement as well as positions in the European Commission, Deutsche Bundesbank and private practice.

Mr Löber regularly publishes on financial markets legal, regulatory and infrastructure issues and lectures at universities.