There has been a lot of hype around central banks, interbank payments, blockchains, and central bank digital currencies (CBDCs), but the narrative has become confusing and often misses the point. What’s going on? Actually two independent things are being actively explored:
- Decentralisation of interbank payment systems
- Wider access to digital central bank money (Central Bank Digital Currencies – CBDCs)
I aim to explain them both in this post.
I enjoyed listening to Episode 151 of the podcast “Epicenter” (previously “Epicenter Bitcoin”) featuring Ian Grigg, inventor of Ricardian Contracts and blogger at Financial Cryptography. Here are my notes – part transcription, with some edits. This one is a goldmine and covers many topics: bonds, contracts, cash, Chaumian e-cash, DigiCash, financial cryptography, Ricardian contracts, digital signatures, smart contracts, dispute resolution, Ethereum, triple entry book-keeping, oh my!
Misunderstandings and paraphrasing errors are entirely mine.
This gets fairly technical; if this is hard to follow, it may be helpful to read my introduction to smart contracts first. Hmm, if it’s still hard to follow, also read about blockchains and bitcoin and Ethereum, and digital tokens.