CBDCs: Management, Issuance and Regulatory Frameworks

CBDCs: Management, Issuance and Regulatory Frameworks

CBDCs: Management, Issuance and Regulatory Frameworks

Date: 22–25 May, 2023
Time: 9am-1pm (EDT) | 2pm-6pm (BST) | 9pm-1am (SGT)
Location: Virtual 

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

Key issues the course will address: 

 

  • What are the next steps in taking CBDCs forward?
  • What are the implications of CBDCs for payment ecosystems?
  • What are the technological, security and privacy considerations of CBDC?

In 2023, central banks increasingly recognise the need to move from abstract reflections to concrete technicalities of CBDC.

They have built on assessments of use cases and design options, as well as implications for payments ecosystems, monetary policy and financial stability. Attention now turns to technology, security and privacy considerations as well as interaction with traditional payment methods.

Yet while much is understood and progress is made on a seemingly daily basis, many questions remain. What is the potential scope of central bank involvement? What is the structure (direct vs intermediated models, wholesale vs retail)? What are the regulatory implications?

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.

Setting the scene and foundations of CBDC

14:0014:30

Course introduction and welcome
Course introduction session led by the chair

11:00 - 11:15

  • Introductions and welcome from the chairperson
  • Overview of the training course programme and speakers
  • Discussion of participant expectations and areas of particular interest
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.

14:3015:30

Stablecoins and CBDCs: a driver for financial inclusion?

15:45 - 16:45

  • 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?
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.

15:3015:45

Coffee break

10:45 - 12:00

15:4516:45

CBDCs state of the art in 2023 - central bank considerations from an EU perspective

14:45 - 15:45

Alexandre Stervinou

Director - cash and retail payments policy and oversight directorate

Banque de France

Alexandre Stervinou is currently Director in the Cash and Retail Payments Policy and Oversight Directorate at the Banque de France, a 50+ staff directorate in charge of strategic policy orientations for, and the oversight of, all types of retail payments, with a focus on fostering innovations in those fields (e.g. CBDC with the digital euro). The Directorate also has a direct responsibility on cash anti-counterfeiting matters. Prior to this, Alexandre held a Deputy Director role in the Market Infrastructures and Innovations Directorate and, between 2019 and 2021, he was a member of the Financial Stability Board (FSB) Secretariat, where he mostly dealt with innovation related matters on the G20 agenda for financial services, and more specifically on cutting-edge topics such as cross-border payments, cybersecurity, crypto-assets and stablecoins, BigTechs, cloud services, artificial intelligence and machine learning.

Between 2015 and 2019, Alexandre was the Head of the Non-cash Means of Payment Oversight division at Banque de France, in charge of policy and oversight issues for cashless payments. In this role, he was the Secretary of the Observatory for the Security of Payment Means, chaired by the Governor of Banque de France, and Secretary of the National Payments Committee. To this end, he contributed to the development of a national and European retail payment strategy supported by Banque de France, in collaboration with the private sector.

Alexandre has represented the central bank since 2008 in various international (G20, G7) and European committees related to payments, cybersecurity and innovation, notably working on regulation, supervision and oversight frameworks, and is currently also a member of the digital euro project steering group.

Alexandre started his career in the private sector, working in the financial services and telecom industry

16:4517:15

Networking break

15:30 - 16:00

17:1518:15

Assessing the implications for financial stability and monetary policy in the central banking arena

16:15 - 17:15

  • Interactions of CBDCs for interest rates and quantitative easing
  • Overview of considerations regarding the introduction of CBDCs as an instrument for monetary policy
  • Examples of risks and opportunities of introducing CBDCs
  • Discussion: can CBDCs be an effective instrument for implementing monetary policy?
Carl Andreas Claussen

Senior advisor

Sveriges Riksbank

Carl Andreas is senior advisor at the Riksbank. He is an experienced central banker and is currently involved in questions related to money and the digitalisation of payments. His latest research focus on cash demand. Claussen has worked at several central banks and done technical assistance and consultancy work for many more. He has published in academic journals, central bank outlets and blogs. He has a Phd in political economy from the University of Oslo, Norway.

Stablecoins, traditional payment services and CBDC – competitors or complementary?

14:0015:00

Assessment of risks to financial stability from crypto-assets

14:15 - 15:15

  • Vulnerabilities concerning unbacked crypto-assets
  • Vulnerabilities concerning stablecoins
  • Decentralised Finance (DeFi) and Crypto-asset Trading Platforms
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.

15:0015:15

Coffee break

10:45 - 12:00

15:1516:15

Setting the scene of CBDCs – what are the main opportunities and risks?

13:30 - 14:30

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.

16:1516:45

Networking break

15:30 - 16:00

16:4517:45

The role of private sector payment providers in a changing environment

15:45 - 16:45

Daniel Heller

Head Regulatory Strategy

RTGS.global

Daniel Heller is an economist and financial sector expert specializing in international regulation.  He is advising financial institutions , startups and central bank in the areas of FinTech, cross-border payments and digital currencies. 

Previously, he has held various executive positions at the Swiss National Bank (SNB), the Bank for International Settlements (BIS) and the International Monetary Fund (IMF). 

He holds a PhD degree in Economics from University of Bern and was a research fellow at Stanford University and the Peterson Institute for International Economics (PIIE) in Washington.

Cross border payments

14:0015:00

An in-depth overview of current technology platforms and implications for the payment ecosystem

13:00 - 14:00

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

Head of BIS Innovation Hub Hong Kong Centre

Bank for International Settlements

Bénédicte is the Head of the BIS Innovation Hub, Hong Kong Centre. Prior to this appointment, she was a managing director at SC Ventures, the innovation arm of Standard Chartered Bank that leads a series of new ventures across digital banking, banking as a service, SME finance and blockchain. From 2018-2019, she was the Vice President of International Government Relations at Circle, involved in the evolution of blockchain and digital assets. From 2012-2018, she was the Head of Risk & Strategy of the Hong Kong Securities and Futures Commission (SFC), and in that capacity also acting as the Vice Chair of the Committee on Emerging Risks and the Fintech research lead for the International Organization of Securities Commissions (IOSCO). From 2007-2012, she was a managing director at Credit Suisse and before that from 1997-2007 she was an associate and executive director at Goldman Sachs. Originally from Belgium, she holds LL.M. and M.B.A. degrees from the University of Chicago and the University of Leuven. She is admitted to the New York Bar since 1999. In 2016, she was a recipient of the China Daily Asian Women Leadership Awards for her efforts related to entrepreneurship, innovation and charity. She remains closely engaged in these topics, most recently through her involvement in the Fintech Association of Hong Kong (FTAHK) and Women in Finance Asia (WiFA.) 

15:0015:15

Coffee break

10:45 - 12:00

15:1516:15

Cross-border considerations of CBDC

15:15 - 16:15

  • Challenges to cross-border payments today
  • CBDC’s potential to improve cross-border payments efficiency and ongoing initiatives and experiments
Manisha Patel

Financial Sector Expert (CBDC - Payments, Currencies and Infrastructure)

IMF

Manisha Patel is a Financial Sector Expert in Payments, Currencies and Infrastructure within the Monetary and Capital Markets Department at the International Monetary Fund. During her career she has worked in both the private and public sector across both analytical/economic and policy roles. Prior to the IMF, Manisha worked at the Bank of England on future of money issues, primarily the UK's policy development and international dialogue on retail central bank digital currencies. Manisha studied Economics and Finance at university, and holds a Masters in Global Central Banking and Financial Regulation.

16:1516:45

Networking break

15:30 - 16:00

16:4517:45

Legal aspects of issuing a CBDC

15:45 - 16:45

  • What are the key legal issues of central bank digital currencies?
  • The key role of CBDC design: account-based vs. token-based approaches
  • Can CBDCs be granted “currency” status?
  • Discussion: should central banks be granted a monopoly for the issuance of digital currency?
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.

CBDC in practice

14:0015:00

Jam-Dex – no cash no problem?

13:00 - 14:00

  • Discussion on Jamaica’s history leading up to JAM-DEX
  • What are the motivations and architecture design for JAM-DEX?
  • Project Implementation: Lessons learnt and next steps
Mario Griffiths

Director, Payment System Policy and Development

Bank of Jamaica

Mario holds a BSc in Business Administration majoring in Finance at the Northern Caribbean University and an MBA in Banking and Finance from the University of the West Indies, Jamaica. He is charged with responsibilities for policy formulation, development and implementation of financial market infrastructures (FMIs) and financial technology for the enhancement of the National Payment ecosystem, development of industry strategies and regulatory policies, guidance around technology innovation affecting the National Payments, Clearing and Settlement systems and managing the development, review and improvement of the Bank’s regulatory framework, systemically important infrastructures and financial innovation (Fintech) to ensure a robust and dynamic regime which satisfies international and regulatory requirements and ultimately mitigates systemic risk. Currently, he is the Technical Expert providing support and technical advice on the implementation of the CBDC Pilot project. He also represents the Financial Markets Infrastructure Division on several committees and working groups in the area of Fintech, Fast Payments, Bigtech, Cryptocurrencies, CBDC and Financial System Stability. In 2016, he was seconded to the Bank for International Settlements (BIS) where he was assigned to the Monetary and Economic Department, Committee on Payments and Market Infrastructure (CPMI).

15:0015:15

Coffee break

10:45 - 12:00

15:1516:15

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?
  • Discussion: should there be collaboration between central banks and the private sector in CBDC issuance?
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). 

16:1516:45

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

15:15 - 15:45

16:4517:15

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:

  • Discuss the roadblocks involved with progressing a CBDC – and how to overcome them
  • Evaluate the technological, security and privacy considerations of issuing a 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

 

BOOK NOW

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.