Training course on Central Bank Digital Currencies (CBDCs): Policy and Practice

Module 1: Introduction to Digital Currencies

Evolution of money: from cash to digital currencies

Differences between cryptocurrencies, stablecoins, and CBDCs

Why CBDCs matter for central banks

Module 2: Motivations for CBDCs

Enhancing payment system efficiency and resilience

Promoting financial inclusion

Responding to private digital money (e.g., stablecoins, BigTech payments)

Strategic sovereignty in cross-border payments

Module 3: CBDC Design Choices

Retail vs. wholesale CBDCs

Token-based vs. account-based models

Offline functionality and interoperability

Cybersecurity and resilience considerations

Module 4: Implications for Monetary Policy and Financial Stability

CBDCs and monetary policy transmission mechanisms

Impact on commercial banks and financial intermediation

Risks of bank disintermediation and liquidity management

CBDCs in crisis response

Module 5: Legal, Regulatory, and Governance Issues

Legal tender status of CBDCs

Data privacy and consumer protection

AML/CFT compliance and KYC challenges

Governance models for CBDC issuance

Module 6: Technology Infrastructure and Innovation

Distributed Ledger Technology (DLT) vs. centralized systems

Scalability, interoperability, and cross-border functionality

Integrating CBDCs with emerging technologies (AI, IoT, blockchain)

Module 7: Global Experiences and Case Studies

The Bahamas (Sand Dollar), Nigeria (eNaira), China (e-CNY), Sweden (e-krona)

BIS Innovation Hub projects (Project Helvetia, Project Dunbar, Project mBridge)

Lessons learned from pilot implementations

Module 8: CBDCs in Emerging and Developing Economies

Tailoring CBDCs for low-income and underbanked populations

Infrastructure challenges and mobile money ecosystems

Regional collaborations and cross-border initiatives

Module 9: Risks, Challenges, and Controversies

Cybersecurity and operational risks

Balancing privacy with financial surveillance

Political economy of CBDCs

Public trust and adoption barriers

Module 10: Future of CBDCs and Policy Roadmaps

Strategic frameworks for CBDC research and development

Phased pilots, sandboxes, and cross-border testing

CBDCs and the future of central banking

Module 11: Applied Workshop

Simulation of a CBDC policy debate (pros and cons)

Designing a CBDC pilot framework

Group presentations and peer review

Module 12: Capstone Project

Drafting a policy brief on CBDCs for a hypothetical central bank

Recommendations on design, adoption, and governance

Final evaluation and feedback