The Ockham’s Razor: How to Implement CBDC Simply: The Idea of a Digital Currency Bank
Abstract
Abstract Central banks that intend to implement Central Bank Digital Currency (CBDC) must decide whether to leverage blockchain as their technology or introduce digital currency on their own terms. We argue that the first option is not a good idea, as it implies the application of a very complicated, non-intuitive, and expensive solution, which cannot meet some central banks’ expectations. Instead, we propose a special entity – a Digital Currency Bank (DCB) – as a method to implement CBDC. The DCB would use traditional information technology successfully employed by banks for years, instead of the intricate blockchain technology used to implement cryptocurrencies.
Fields of Study & Subjects
Blockchain Technology Applications and Security
Digital Transformation in Financial Services
FinTech
Crowdfunding
Digital Finance
Publication details
- Journal / source
- Journal of Central Banking Theory and Practice
- Volume
- 15
- Issue
- 1
- Pages
- 53–68
- Publication date
- 1 January 2026
- Language
- EN