Authors: Manuel Klein, Jonas Gross, Philipp Sandner
Here are their key findings:
Digitization has reached the monetary system.
Using Distributed Ledger Technologies (DLT) can enhance the security of sensitive financial transaction data, increase transaction speed through faster processing and settlement, and automate numerous business processes through smart contracts.
DLT can be used both to digitally represent bank deposits and to tokenize central bank money via central bank digital currencies (CBDCs).
The Bank of England pioneered this movement and started to analyze the introduction of its own CBDC already in 2014.
Currently, the People’s Bank of China and the Swedish Riksbank run DLT-based CBDC projects and prototypes.
The European Central Bank (ECB) is considering similar initiatives.
You can read the full paper on Medium or download it as a PDF.