CBDCs: Management, Issuance and Regulatory Frameworks 2022b

CBDCs: Management, Issuance and Regulatory Frameworks 2022b

CBDCs: Management, Issuance and Regulatory Frameworks

November 28 – December 1

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 policymakers 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 and cross border payments. The interaction between CBDCs and the growing DeFi ecosystem poses many challenges for central banks. 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.

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

CBDCs 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

12:45 - 13:00

14:4515:45

Understanding implications for banking, financial stability and monetary policy

12:00 - 12:45

  • 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 
Carl Andreas Claussen

Senior advisor

Riksbank

Carl Andreas Claussen is senior advisor at the payments department of Sveriges Riksbank where he works on the Riksbanks e-krona project. He is a contributor to various e-krona/CBDC publications from the Riksbank.

15:4516:00

Break

12:45 - 13:00

16:0017:00

The potential significance of stablecoins for central banks

16:15 - 17:15

  • Where do stablecoins fit in in the monetary landscape?
  • What are the implications of stablecoins for central banks?
  • How should stablecoins be regulated?
Marius Jurgilas

Board member

Bank of Lithuania

Marius Jurgilas has brought his experience in both academia and government to the important role of Member of the Board of the Bank of Lithuania with responsibility for payment systems and research. During his tenure Lithuania emerged as a top jurisdiction for fintech companies within the EU under the leadership of the Bank of Lithuania, forging Mr. Jurgilas' reputation as a leading European thinker on the future of banking. 

Use of CBDCs to improve payment systems

13:0014:00

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

12:00 - 12:45

  • 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?
James Chapman

Senior research director, funds management and banking

Bank of Canada

James Chapman is the senior research director in the Funds Management and Banking Department at the Bank of Canada. He received a Ph.D. in Economics and an MSc in Statistics from the University of Iowa in 2006. He joined the Bank of Canada as a senior analyst in that year. His primary research focus has been on interbank market and financial market infrastructure issues such as liquidity risk and credit risk in large-value payment systems as well as the efficiency of interbank markets. Recently his research focus has evolved to include research on fintech related topics. These topics include the use of distributed ledger technology in financial market infrastructure, specifically the Bank’s Project Jasper, as well as questions related to digital currencies such as Bitcoin, Ethereum and initial coin offerings.

14:0014:15

Break

12:45 - 13:00

14:1515:15

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

11:00 - 11:45

  • Why do cross-border payments need to be improved? What efforts are being made to address the key challenges? 
  • CBDCs potential for improving cross-border payments efficiency
  • What are possible CBDC design options open to central banks for enhancing cross-border payments?
  • Examples of experiments and successful projects and initiatives 
  • Discussion: what are the next steps and key dynamics? 
Anneke Kosse

Senior Economist

BIS

Anneke Kosse is a Senior Economist at the Secretariat of the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI). Her portfolio includes conducting research and supporting the Secretariat’s policy and standard-setting work in the area of central bank digital currencies, cryptoassets and stablecoins. Previously, Anneke worked at the Bank of Canada, most recently as a Research Advisor at the Banking and Payments Department, where she was responsible for leading the Bank of Canada’s research agenda for the modernization of the Canadian payment system. Prior to that, Anneke worked for nearly ten years at the Dutch Central Bank, where she conducted research in the area of retail payments. Her payments research has been published in various peer reviewed journals. Anneke holds a PhD in Business and Economics from Tilburg University.

15:1515:45

Networking break

15:30 - 16:00

15:4516:45

CBDCs: a driver for financial inclusion?

15:30 - 16:30

  • Financial inclusion status within the AFI member countries – gains and opportunities
  • Motivation for CBDCs in EDMEs and emerging use cases prioritized for financial inclusion
  • CBDC as a driver for financial inclusion: addressing demand and supply side barriers and potential risks for prioritized use cases
  • Discussion: – how to assess if CBDC is an appropriate tool to address financial inclusion gaps?
Adeyemi Omotoso

Policy Specialist Inclusive FinTech

Alliance for Financial Inclusion

Analysing the role of central banks in digital currencies

13:0014:00

If CBDCs are the solution, what is the problem?

11:00 - 11:45

  • 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?
Douglas Arner

Kerry Holdings professor in law

University of Hong Kong

Douglas W. Arner is the Kerry Holdings Professor in Law, RGC Senior Fellow in Digital Finance and Sustainable Development and Associate Director of the HKU-Standard Chartered Foundation FinTech Academy at the University of Hong Kong. In addition, he is Associate Dean (Taught Postgraduate and Development) of the Faculty of Law at HKU and co-founder and former Director of HKU’s Asian Institute of International Financial Law, as well as Faculty Director and co-founder of the LLM in Compliance and Regulation, the LLM in Corporate and Financial Law, the Law, Innovation, Technology and Entrepreneurship (LITE), and the East Asian International Economic Law and Policy Programmes. Douglas served as Head of the HKU Department of Law from 2011-2014, as Director of the Duke University-HKU Asia America Institute in Transnational Law from 2005-2016, and as an inaugural member of the Hong Kong Financial Services Development Council from 2013-2019. He is a Visiting Professor and Senior Visiting Fellow of Melbourne Law School of the University of Melbourne, a Visiting Professorial Fellow of the Faculty of Law of UNSW Sydney, a non-executive director of NASDAQ and Euronext listed biotechnology firm Aptorum Group, an Advisory Board Member of the Global Impact FinTech (GIFT) Forum, Policy 4.0 and of the Centre for Finance, Technology and Entrepreneurship (CFTE), and co-founder and an executive board member of the Asia Pacific Structured Finance Association. In 2020 he was awarded an inaugural Hong Kong Research Grants Council Senior Fellowship to study the role of digital finance in financial inclusion and the UN Sustainable Development Goals. Douglas has published eighteen books and more than 200 articles, chapters and reports on international financial law and regulation, including most recently Reconceptualising Global Finance and its Regulation (Cambridge 2016) (with Ross Buckley and Emilios Avgouleas) and The RegTech Book (Wiley 2019 (Janos Barberis and Ross Buckley). His recent papers are available on SSRN at https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=524849 , where he is among the top 50 authors in the world by total downloads, as well as among the top 15 law authors. Douglas led the development of Introduction to FinTech – launched with edX in May 2018 and now with over 100,000 learners spanning almost every country in the world – and the foundation of the edx-HKU Online Professional Certificate in FinTech. In addition, he has served as a consultant with, among others, the World Bank, Asian Development Bank, UN, APEC, Alliance for Financial Inclusion, and European Bank for Reconstruction and Development. He has lectured, co-organised conferences and seminars and been involved with financial sector reform projects around the world. Douglas has been a visiting professor or fellow at Duke, Harvard, the Hong Kong Institute for Monetary Research, IDC Herzliya, McGill, Melbourne, National University of Singapore, University of New South Wales, Shanghai University of Finance and Economics, and Zurich, among others.

14:0014:15

Break

12:45 - 13:00

14:1515:15

Assessment of risks to financial stability from crypto-assets

14:45 - 15:45

  • Vulnerabilities concerning unbacked crypto-assets
  • Vulnerabilities concerning stablecoins
  • Decentralised Finance (DeFi) and Crypto-asset Trading Platforms
  • Data gaps
Mohammad Davoodalhosseini

Research advisor

Bank of Canada

Currently a Research Advisor at the Bank of Canada, Mohammad joined the Bank as a Senior Economist after he received his Ph.D. in Economics from the Pennsylvania State University in 2015. Prior to that, he received his B.Sc. in Electrical Engineering and M.Sc. in Economics from Sharif University of Technology, Iran, in 2007 and 2009, respectively.

His research interests can be classified into two broad categories: monetary economics and search theory. On monetary economics, he studies new developments in the field of electronic money and payments and explores how introducing a central bank digital currency (CBDC) can affect the implementation and transmission of monetary policy as well as the efficiency and stability of financial system. On search theory, he explores the role of information asymmetries in markets with search frictions, with applications to inter-bank, labor and over-the-counter markets. His work has been published in academic journals such as Journal of Economic TheoryInternational Economic Review, Journal of Economic Dynamics and Control and European Economic Review.

15:1515:45

Networking break

15:30 - 16:00

15:4516:45

Legal aspects of issuing a CBDC

13:00 - 13:45

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

Senior fintech counsel

International Monetary Fund

Ms. Marianne Bechara is a Senior Fintech Counsel in the International Monetary Fund’s Legal Department, where she provides legal advice on Fintech, central banks legislation and supervision regimes of financial institutions. Prior to relocating to U.S., Ms. Bechara was senior legal counsel directly assisting the General Counsel of the Lebanese Central Bank and Capital Market Authority at the time. Ms. Bechara received her a Bachelor of Laws in both Lebanese and French laws from Saint-Joseph University, Lebanon, and her LL.M in Banking and Financial Law from Boston University, U.S. She also completed the Fundamentals of FinTech and Banking Law Program at the University of California, Berkeley, U.S. She is an attorney admitted to practice law in both California and New York, U.S.

Use of technology platforms and the role of the private sector for CBDC

13:0014:00

Technology platforms for CBDCs

11:00 - 11:45

  • 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?
Thomas Moser

Alternate member of the governing board

Swiss National Bank

Thomas Moser is Alternate Member of the Governing Board of the Swiss National Bank. He is also a member of the Managing Committee of the Swiss Institute of Banking and Finance at the University of St. Gallen and a member of the Board of Directors of Orell Füssli Holding Ltd. From 2006 to 2009 he was Executive Director at the International Monetary Fund (IMF) in Washington, D.C., USA. Thomas Moser holds a MA and a doctorate in Economics from the University of Zurich.

14:0014:15

Break

12:45 - 13:00

14:1515:15

Role of private sector with regards to CBDC usage

12:00 - 12:45

  • 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?
Sharmyn Powell

Chief risk officer

Eastern Caribbean Central Bank

Ms Sharmyn Powell has been employed at the Eastern Caribbean Central Bank for over 25 years and currently holds the position of Chief Risk Officer.  She leads the Office of Corporate Strategy and Risk Management with responsibility for Enterprise Risk Management, Compliance, Strategic Plan development and monitoring and Business Continuity Management. 

Prior to assuming this role, she served in various capacities at the Bank including, Deputy Director, Accounting Department, Director, Currency Management Department and Director, Support Services Management Department.  She is the Chairperson of the Bank’s Fintech Working Group, which is leading the implementation of the DCash Pilot Project for the issuance of a block-chain based digital version of the EC Currency. 

Ms Powell is a Certified Accountant (ACCA), and also carries the designations of Chartered Director (C. Dir) and Audit Committee Certified (A.C.C). 

15:1515:30

Break

12:45 - 13:00

15:3016:15

CBDC closing remarks and delegate action plans

15:30 - 16:15

Concluding session led by the chair
  • 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
  • Gain insights into the challenges that DeFi is posing for central banks
  • Assess the opportunities for improving cross-border payments and financial inclusion