Wholesale CBDC refers to a central bank digital currency designed specifically for interbank transfers and wholesale financial transactions between financial institutions. Unlike a retail CBDC intended for public use, wholesale CBDC is restricted to a limited set of authorized participants, such as commercial banks and other regulated entities. Its purpose is to improve the efficiency, safety, and resilience of large-value payment and settlement systems.
Context
Central banks globally are actively piloting wholesale CBDC projects to modernize existing financial market infrastructures, a topic frequently covered in financial news. These initiatives aim to reduce settlement times and costs for interbank transactions and cross-border payments. The potential for a wholesale CBDC to enhance financial stability and facilitate innovative DLT-based financial services is a key area of ongoing research and experimentation.
This initiative strategically integrates DLT for digital bond issuance and settlement via wholesale CBDC, optimizing capital market efficiency and validating a new operational paradigm for institutional finance.
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