Digital Currency & CBDC Implications for Reserve Management

The rise of private cryptocurrencies and the rapid development of Central Bank Digital Currencies (CBDCs) represent a paradigm shift in the future of money, finance, and international payment systems. This course offers a focused analysis on how these digital innovations will impact the stability, composition, and management of foreign exchange reserves. Participants will gain a technical and policy understanding of distributed ledger technology (DLT), the mechanics of CBDCs (both wholesale and retail), and the challenges presented by stablecoins and private crypto-assets. The program is specifically tailored for reserve managers, addressing critical questions regarding the potential role of digital currencies as reserve assets, the implications for capital flows and monetary policy transmission, and the necessary adjustments to operational and risk frameworks. We will also explore the potential of CBDCs to revolutionize cross-border payments, potentially disrupting traditional correspondent banking and reserve holding mechanisms.