Central Bank Digital Currencies

Understanding and Modeling CBDCs

Over 70 countries are conducting R&D on central bank digital currencies (CBDCs) around the world. Through our organic analytical resources and cryptocurrency modeling technologies, Terranet’s CBDCs Model offers customers the unique ability not only to fully evaluate and understand the underlying technology upon which a CBDC is built, but also to generate a “digital twin” of that technology and its highly complex macroeconomic ecosystem. From that digital twin, we will be able to fully model, simulate and perform predictive analysis of a CBDC’s usage patterns, domestic and international capital flows, and pricing and money supply dynamics.

Pairing this digital currency model with real world and simulated economic data inputs and technical parameters, we are establishing a comprehensive monitoring and simulation platform, termed the Digital Twin Analytical Platform (DTAP), that will identify characteristics of CBDC ecosystems and provide a “digital proving ground” for a wide variety of global impact scenarios. We envision this simulation and analysis platform to be accessible to member organizations from the financial, regulatory and academic sectors.

We are offering membership subscriptions to our research newsletter. If you are interested in joining our research platform as a sponsoring member, please email us for an introductory free trial, which includes a subscription to our monthly newsletter and periodic updates on our research initiatives.

We are rapidly growing our team of economists, systems engineers, scientists and blockchain experts to observe, study, and model the fast-emerging CBDCs. Please email us to learn more about our platform and to meet members of the team.

CBDC News

Robert Murray Robert Murray

June 2022

  • Taiwan’s central bank has been piloting its CBDC for two years, and they plan to spend at least another two to complete their CBDC platform. The central bank needs to have wide public support, legal framework, and system stability before they decide to launch their CBDC. Go to Article.

  • Swiss national Bank Deputy Head Thomas Moser has stated that private stablecoins and CBDCs could co-exist. Moser also noted that the collapse of Terra’s TerraUSD might cause regulators to favor centralized stablecoins over decentralized ones. Go to Article.

  • Executives at China’s Blockchain-based Service Network likened cryptocurrencies to investment fraud after a recent market crash led to investors suffering deep losses. The executives claimed that the prices of cryptocurrencies depend on the confidence of consumers and the number of new investors, making them unstable and similar to a Ponzi schemes. Go to Article.

  • With China at the forefront of CBDC development and challenging the US’s SWIFT with their CIPS, it looks probable the yuan will replace the dollar as the world’s reserve currency. China’s Belt and Road Initiative (BRI) will also help internationalize the currency. However, lack of trust in the yuan remains. Go to Article.

  • Romania hosted the Banking 4.0 Crypto edition in May where financial officials gathered to hear and participate in discussions on CBDCs, DeFi, NFTs, crypto, and blockchain technology with key speakers like Ripple and Worldline. Romania itself has adopted blockchain technology and has experienced a growing public interest in digital currencies. Go to Article.

  • Nigerian central bank governor Godwin Emefiele assures skeptical Nigerians that the eNaira establishes Nigeria as a competitive country in a digital world by bolstering trade and investment activities. The eNaira hackathon event will promote the currency and allow innovators to brainstorm solutions for the CBDC. Go to Article.

  • Congressman Jim Himes has stated that the US must pass legislation to develop a CBDC in his proposal titled “Winning the Future of Money: A Proposal for a U.S. Central Bank Digital Currency.” Himes argues that a CBDC would have many advantages over privately issued stablecoins. Go to Article.

  • The Qatar Central Bank (QCB) announced that Qatar is in the early stages of a project to determine CBDC solutions. The bank stated that crypto assets not backed by monetary authorities are less credible and stable than CBDCs. Go to Article.

  • The Bank for International Settlements (BIS) has released the crypto-focused chapter of its “2022 Annual Economic Report”, which concludes that cryptocurrencies and private, decentralized blockchains are fundamentally flawed. Instead, CBDCs should be favored for their stability and trust. Go to Article.

  • The Bank of Israel has released the results of its technological CBDC experiment, which modeled the sale of a car using nonfungible tokens (NFT) and a smart contract. The experiment made the bank aware of several areas of improvement as technical issues arose. Go to Article.

  • The People’s Bank of China (PBoC) has allowed loans to be granted to small and medium enterprises using digital yuan. The CBDC made the transactions cheaper and faster compared to traditional lending. Digital yuan has also been used in Chongqing to pay taxes, proving that China is expanding its digital yuan testing beyond retail endeavors. Go to Article.

  • China-based blockchain platform ChainMaker has adopted technology that can resist cyberattacks from classical and quantum computers, making online transactions safer. ChainMaker was China’s first independent blockchain platform and was developed by a Beijing consortium. Go to Article.

  • According to the Center for European Reform, CBDCs may become a costly waste of time without widespread adoption and public support. European regulators, the center says, should instead make payments cheaper and more competitive. Go to Article.

  • A report by the Reserve Bank of India (RBI) states that the highly anticipated Digital Rupee will match the country’s current monetary policies and payment systems. India hopes that their CBDC will increase financial inclusion. Go to Article.

  • Thailand’s CBDC pilot, expected to test deposits, withdrawals, and transfers, has been postponed to the fourth quarter of this year. Governor of Thailand’s central bank Sethaput Suthiwartnarueput says the delay is not unusual, and that the pilot will have a limited scale. Go to Article.

  • American blockchain solutions provider R3 has partnered with INDUSTRIA, a UK-Bulgarian blockchain company, to open its first Eastern European R&D hub in Sofia, Bulgaria. R3 and INDUSTRIA will develop their Corda and Conclave platforms. Go to Article.

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