Lattice Central Banking Solution

Interbank settlements will be made more efficient by using smart contracts and distributed ledger technology.

Transfers in different currencies and payment vs. delivery models can minimize credit default risk.

When Central banks issue their own digital currencies, they will play a more active role for individuals using the monetary system, thereby changing the role for commercial banks in the financial sector as we know them today.

The role of central banks is magnified with CBDCs, in that they will make their policies directly felt among the general public.

By contrast, if CBDCs were designed to offer a yield for holding them (as opposed to being used as a payment system), it would compete with other interest-bearing assets such as commercial bank deposits.

Central banks could distribute money directly to the public via targeted monetary policies. For example, they could have made the recent stimulus checks in the USA available instantly and according to programmed conditions.

Central Banks using CBDC’s may offer the public an alternative to storing savings with commercial banks, reducing financial uncertainty by increasing stability.

CBDC payments enable additional innovations in the financial sector.

A CBDC payment medium will facilitate a new monetary system that will make it easier to move money around the globe, allowing payments to clear in minutes instead of days.

Through the use of CBDCs, emerging economies can compete with other countries and strengthen their currencies.

Countries that implement CBDC will maintain a greater stability for their future, making them less susceptible to exchange rate shocks and liquidity problems.