This analysis was provided in anticipation of LBCOIN, a blockchain-based digital collector coin, expected to be issued at the beginning of 2020. In the context of the CBDC discussion, the paper elaborates on the regulatory sandbox approach in supervision. LBCOIN is a controlled experiment that can be considered an in vitro test of multiple practical aspects relevant to the broader CBDC discussion.
CBDC could serve as a new form of money issued by central banks. If it were introduced, it would complement cash and credit institutions’ reserves already provided by central banks, as well as commercial bank deposits and electronic money (which is offered by financial market participants under relevant licensing regimes).
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