Interoperability Between Central Bank Digital Currency Systems and Fast Payment Systems: A Technical Perspective

doi:https://doi.org/10.1596/41812

Publication:
Interoperability Between Central Bank Digital Currency Systems and Fast Payment Systems: A Technical Perspective

dc.contributor.author	World Bank
dc.date.accessioned	2024-07-02T19:24:10Z
dc.date.available	2024-07-02T19:24:10Z
dc.date.issued	2024-07-02
dc.description.abstract	Central banks around the world are actively researching and investigating the benefits, challenges, and design options of wholesale and retail central bank digital currencies (CBDCs). Since CBDCs are one of the most critical components of a national payment system (NPS), it is important that their interoperability with other payment systems is one of the key considerations in the design process. The ITS Technology and Innovation (ITSI) team, in collaboration with the World Banks’s Finance Competitiveness and Innovation (FCI) Global Practice, has conducted technology design experiments on two specific scenarios regarding CBDC system interoperability with fast payment systems (FPS). In the first scenario, the experiment investigated the option of settling FPS obligations in a wholesale CBDC system, including the option to reserve funds to guarantee the settlement of FPS net obligations. In the second scenario, the team investigated the interoperability between users within the FPS and retail CBDC users, including the transfer of funds among both types of users, using common services such as address resolution services. This experiment illustrated how CBDC systems can interoperate with retail payment systems through an interlinking bridge that was used to route messages and application programming interface (API) calls among different systems. The programmability features of distributed ledge technology (DLT) were used to link the settlement in CBDC to the transfer of funds in the FPS. The technical applicability for this type of interoperability was demonstrated through the experiments, with the caveat that these experiments do not take into account complexities that may be involved with live systems.	en
dc.identifier	http://documents.worldbank.org/curated/en/099607406262426195/IDU18726d4e913edd14b8a1adcf1671ab7d8ebac
dc.identifier.doi	10.1596/41812
dc.identifier.uri	https://hdl.handle.net/10986/41812
dc.language	English
dc.language.iso	en_US
dc.publisher	Washington, DC: World Bank
dc.relation.ispartofseries	Technology & Innovation Lab
dc.rights	CC BY-NC 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	https://creativecommons.org/licenses/by-nc/3.0/igo
dc.subject	CENTRAL BANK DIGITAL CURRENCIES
dc.subject	CBDC
dc.subject	PAYMENT SYSTEMS
dc.subject	SDG 9
dc.title	Interoperability Between Central Bank Digital Currency Systems and Fast Payment Systems	en
dc.title.subtitle	A Technical Perspective	en
dc.type	Report
dspace.entity.type	Publication
okr.crossref.title	Interoperability Between Central Bank Digital Currency Systems and Fast Payment Systems: A Technical Perspective
okr.date.disclosure	2024-07-02
okr.date.lastmodified	2024-06-26T00:00:00Z	en
okr.doctype	Economic & Sector Work
okr.docurl	http://documents.worldbank.org/curated/en/099607406262426195/IDU18726d4e913edd14b8a1adcf1671ab7d8ebac
okr.guid	099607406262426195
okr.identifier.docmid	IDU-8726d4e9-3edd-4b8a-adcf-671ab7d8ebac
okr.identifier.doi	https://doi.org/10.1596/41812
okr.identifier.externaldocumentum	34349735
okr.identifier.internaldocumentum	34349735
okr.identifier.report	191875
okr.import.id	4671
okr.imported	true	en
okr.language.supported	en
okr.pdfurl	http://documents.worldbank.org/curated/en/099607406262426195/pdf/IDU18726d4e913edd14b8a1adcf1671ab7d8ebac.pdf	en
okr.region.geographical	World
okr.topic	Science and Technology Development::Technology Innovation
okr.unit	Technology and Innovation (ITSTI)