Session 1 Bocconi Algorand Fintech Lab Kick - off 2022

1. CENTRAL BANK DIGITAL
CURRENCY
Key Lessons Learned from Global Efforts
September 2022
Katrin Koller
Ousmene Mandeng

2. DR. OUSMÈNE MANDENG
Senior Advisor – CBDCs & Lead of Economic
and Financial Strategy
ousmene.mandeng@accenture.com
KATRIN KOLLER
Senior Manager - Digital Assets, Custody &
CBDCs
katrin.koller@accenture.com
Who are we?

3. CBDCs: The Future of Cash
Globally?
1
2
3
Lessons Learned & Key Challenges from
Select CBDC Experiences
A Brief Outlook
Agenda

4. CBDCs: The Future of Cash
Globally?
1
2
3
Lessons Learned & Key Challenges from
Select CBDC Experiences
A Brief Outlook
Agenda

5. What is
Money?

6. Money is vital to how we all live our daily lives but what truly
can be considered money?
What is Money?
Central bank money is regarded as the highest quality money
due to being backed by the issuing nation's government and
having a value tied to a nation's economy.
Central bank money is available in 2 forms:
• Bank notes / coins for retail customers
• Bank reserves, held by regulated institutions1
3 FUNCTIONS OF MONEY
1 Medium of Exchange
2 Store of Value
3 Unit of Account
1Might differ between different jurisdictions

7. The Future Of Cash Globally?
The declining use of physical cash is apparent in many parts of the world
Consumer and business digital
adoption has vaulted five
years forward in eight weeks
due to COVID.1
The cost of remitting cash in
Q2 2022 is still more than 2x
the World Bank’s Sustainable
Development Target of 3% by
20303
In 2021, US consumers used
cash in 20 percent of
transactions, down from 30
percent in 2017.2
Global cashless payment
volumes are forecasted to
increase by more than 80%
between 2020 and 2025.4
COVID-19 has impacted
consumer shopping behavior,
visiting fewer stores and
maintaining higher transaction
values (~$40).6
105 countries, representing
>95% of global GDP are
engaged in some sort of CBDC
related work.5
Sources: 1McKinsey, 2San Francisco FRB, 3World Bank, 4PWC, 5BIS, 6Payments Journal, 7Pittsburgh Gazette, 8The Telegraph, 9IBT, 10Cointelegraph
6
7
8
9
10

8. What is Central
Bank Digital
Currency?

9. Definition Of CBDC
A CBDC could offer a new Payments Architecture to enable new Money Functionalities
CBDC represents a third format of money that exists alongside existing forms. It is fully fungible with cash &
central bank reserves. While CBDC can be used to describe a specific instantiation, it should be thought of as an
encompassing term that can take different forms based on functional and technology requirements.
Definition
The innovative nature of CBDCs lies in their digital form as a new medium of money, enabled by
blockchain/distributed ledger technology (DLT). CBDCs can be token based or account based; we recommend
token based as the potential for innovation is greater. A two-tier distribution model limits bank
disintermediation, whereby end users have wallets with their respective banks and can request CBDC through
their bank.
Design Considerations
Technology
Considerations
The introduction of a widely accessible, token based CBDC is best powered by DLT due to the functional and
non-functional characteristics of the technology which can enable token innovation; tokens may better support
offline functionality and greater programmability.

10. The Majority Of Central Banks Have Launched CBDC Initiatives
Development Launched
Research Pilot
*Eastern Caribbean Central Bank
**Banque Centrale des Etats de l'Afrique de l'Ouest
47 25 14 5
ECCB*
Singapore
The Bahamas
BCEAO**
ECB
Cambodia
Hong Kong
OTHER CBDC PROJECTS
Development Launched
Research Pilot
ACCENTURE CBDC
ENGAGEMENTS
SETTLEMENT
Central Banks testing payments and settlements using
digital cash and assets via DLT networks (e.g. Project
Jasper, Ubin, and Stella)
DIGITAL DOLLAR
Exploration of a US CBDC that can serve as a settlement
medium; published a white paper earlier this year. Pilot
discussions ongoing
PROJECT JURA
SELECT ACCENTURE CBDC ACTIVITY
E-KRONA
PROJECT KHOKHA II
BIS mCBDC Bridge
Extension of project by Bank of Thailand and Monetary
Authority of Hong Kong to establish a settlement corridor
allowing use of multiple CBDCs together with PBoC and
Central Bank of the UAE
Nigeria
Jamaica
Source: 1Atlantic Council

11. CBDCs: The Future of Cash
Globally?
1
2
3
Lessons Learned & Key Challenges from
Select CBDC Experiences
A Brief Outlook
Agenda

12. E-KRONA PILOT PROJECT JURA PROJECT KHOKHA II
Select CBDC Experiences
Working with the Riksbanken on a
retail CBDC pilot leveraging
Blockchain/Distributed Ledger
Technology
Partnering with BIS, Banque de
France and the Swiss National
Bank for cross-border CBDC
settlement on a DLT-enabled
platform
Exploring the co-existence of DLT-
enabled central bank debenture,
privately issued stablecoins and a
wholesale CBDC with the South
African Reserve Bank

13. Executive Summary
Accenture has been working with Riksbanken for the past 2 years on a pilot exploring a central bank digital currency (CBDC), leveraging
Blockchain/Distributed Ledger Technology (DLT). An e-krona would allow the general public access to central bank money in a digital format. A final
decision regarding issuance of an e-krona will be made based in part on the pilot findings.
E-krona Pilot Project
Retail CBDC Pilot Implementation
Context
Due to Sweden having one of the fastest declines of available cash globally, Riksbanken is conducting a technical pilot for an e-krona to
explore a digital form of central bank money available to the general public, complementing existing forms of money.
Solution
Accenture was selected as the partner to implement a technical pilot for the e-krona project. The solution focuses on building a token-
based e-krona issuance platform in a test-environment that will interact with simulated participants (e.g., commercial banks and other
type of payment service providers) as distribution channels to the wider market. This preserves the two-tier distribution model and life-
cycle familiar from cash.
E-krona shall be usable for person-to-person payments in real time and settle instantaneously. Accenture is during the engagement
developing a number of different payment instruments to offer choice for merchants and individuals, including mobile app, wearable
and card.
Benefits
An e-krona would allow the general public access to central bank money in a digital format

14. Executive Summary
Accenture developed a pre-production implementation with partners, the Banque de France, Swiss National Bank and Bank for International Settlements
(BIS) Innovation Hub for CBDC settlement on a DLT-enabled platform to demonstrate real transactions
& money flows using central bank money.
Project Jura
Cross-border Settlement In CBDC
Context
With growing global interest among central banks and financial institutions in digital currencies and their implications for modernising
the international monetary system, a consortium with the participation of Credit Suisse, Natixis, R3 and SDX, Project Jura explored
CBDCs for international interbank settlements.
Solution
Accenture was selected to formulate the CBDC design, the outline, the underlying network architecture to meet the performance and
scalability needs for wholesale transactions, as well as comply with the relevant regulatory standards. The solution ultimately
demonstrated both delivery versus payment (DvP) and payment versus payment (PvP) settlements of financial instruments in a cross-
border and offshore setting. Both DvP and PvP present innovative elements and are reflected in the project.
Accenture developed a new, regulatory-compliant issuance platform and worked with R3 for the development of new features to
address multi-jurisdictional sovereignty challenges (dual-notary signing).
Benefits
• Issuance of a real financial instrument & exchange against central bank money in a cross-border & offshore transaction
• Holdings of euro CBDC by non-Eurosystem banks
• Holding of franc CBDC by non-Swiss banks
• New approach to network inter-operability based on control migration

15. Executive Summary
Accenture worked with members of the IFWG and industry participants to develop a wholesale CBDC and settlement token, exploring how the issuance,
settlement and clearing of bond transactions on a permissioned blockchain can drive insights
and help inform policy decisions and regulations.
South African Reserve Bank
Exploring Policy & Regulatory Implications of DLT Tokenization
Context
The Intergovernmental Fintech Working Group, representing the South African Reserve Bank, the Treasury, the tax authority and other
regulators announced Project Khokha 2 to explore how issuing, clearing and settling tokenized money on the DLT can inform policy
decisions and regulations.
Solution
Accenture, in collaboration with the IFWG and the industry participants on Project Khokha 2, was responsible for developing and
tokenizing the wholesale CBDC on R3’s Corda.
We designed and developed a network using R3’s Corda enterprise blockchain. The project was intended to be technology agnostic,
focusing more on how interoperability could be achieved and what impact may occur on the business model and innovation.
Benefits
Participants purchased bonds using wholesale CBDC and a wholesale settlement token which was seen as a privately issued stablecoin
used to settle interbank bond transactions issued and cleared on a permissioned blockchain.

16. CBDCs: The Future of Cash
Globally?
1
2
3
Lessons Learned & Key Challenges from
Select CBDC Experiences
A Brief Outlook
Agenda

17. A Sneak Preview of What We See in Europe and Globally
MiCA
Markets in Crypto Assets
“Today, we put order in the Wild West of
crypto assets and set clear rules for a
harmonized market that will provide legal
certainty for crypto asset”1
DLT Pilot Regime
European Central Bank
Digital Euro
“To ensure financial stability in this digital age, it is
crucial that we all still have easy access to
central bank money, which is the foundation of
our currency. The digital euro can achieve that”3
Europe
Globally
Sources: 1CNBC, 2CoinGeek, 3ECB, 4BIS
“The principles of technology neutrality,
proportionality, the level playing field, and ‘same
activity, same risks, same rules should be taken into
account in order to ensure that market participants
have the regulatory space to innovate”2
G20 Initiative:
Which role can CBDC play, to improve international payments, remittances,
foreign exchange, …
“Central banks have different motivations for exploring or developing CBDC systems…Central banks
across the globe must collaborate at an early stage. Only then can CBDCs have a significant impact on the
costs, speed, access and transparency
of cross-border payments”4
…

18. Q&A