Macroeconomic Implications of Central Bank Digital Currencies (CBDC)

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Central Bank Digital Currencies (CBDCs) are reshaping global economies, impacting monetary policy, financial stability, and economic growth. This course provides a deep dive into the macroeconomic effects of CBDCs, exploring their influence on inflation, interest rates, banking systems, and financial inclusion. Through real-world case studies, expert insights, and interactive discussions, participants will gain the knowledge needed to assess and navigate the evolving digital currency landscape
Objectives

By the end of this course, participants will be able to:

• Analyze the macroeconomic effects of CBDCs on monetary policy, inflation, and economic growth.
• Assess financial stability risks and opportunities associated with CBDC implementation.
• Understand how CBDCs impact interest rates, banking systems, and capital flows.
• Examine the role of CBDCs in financial inclusion and digital payments innovation.
• Explore regulatory frameworks and cross-border implications of CBDCs.
• Evaluate case studies of CBDC adoption in different economies.

Who Should Attend?

This course is designed for professionals involved in economic policy, financial markets, and digital currency development, including:

• Central Bank Officials and Policymakers shaping digital currency strategies.
• Economists and Financial Analysts studying macroeconomic trends and policy impacts.
• Banking and Financial Sector Professionals adapting to digital currency disruptions.
• Regulatory Authorities and Government Officials overseeing monetary policy and financial stability.
• Academics and Researchers specializing in digital finance and economic policy.

Course Outline

Day 1: Introduction to CBDCs and Macroeconomic Fundamentals

• Overview of CBDCs: Definitions, types, and global developments.
• Key macroeconomic principles relevant to digital currencies.
• Differences between CBDCs, cryptocurrencies, and stablecoins.
• Case Study: Lessons from early CBDC adopters (China, Sweden, Bahamas).

Day 2: CBDCs and Monetary Policy Transmission

• How CBDCs influence money supply, interest rates, and inflation.
• Impacts on liquidity management and central bank balance sheets.
• CBDCs vs. traditional monetary policy tools.
• Workshop: Simulating the effects of CBDCs on monetary policy.

Day 3: Financial Stability and Banking System Disruptions

• Risks and benefits of CBDCs for commercial banks and financial institutions.
• Disintermediation concerns: Will CBDCs reduce bank deposits?
• Ensuring liquidity, credit creation, and financial stability.
• Panel Discussion: How CBDCs reshape the banking sector.

Day 4: CBDCs, Financial Inclusion, and Payment Innovation

• CBDCs as a tool for improving financial inclusion.
• Role of digital payment infrastructure and fintech innovations.
• The impact of CBDCs on cash usage and informal economies.
• Workshop: Designing a CBDC framework for financial inclusion.

Day 5: Regulatory Challenges and Cross-Border Implications

• Legal and regulatory challenges of CBDCs.
• The impact of CBDCs on capital controls and foreign exchange markets.
• Cross-border CBDCs and international monetary cooperation.
• Case Study: The role of BIS and IMF in CBDC policymaking.

Day 6: Privacy, Cybersecurity, and Risks in CBDC Implementation

• Balancing privacy, security, and regulatory compliance.
• Cybersecurity risks in CBDC infrastructure.
• Role of blockchain and distributed ledger technology (DLT).
• Expert Roundtable: Addressing cyber threats in CBDC deployment.

Day 7: Future of CBDCs and Strategic Policy Recommendations

• Long-term economic effects of CBDCs.
• Integration of CBDCs with digital assets and tokenized finance.
• Policy recommendations for central banks and financial institutions.

Final Capstone Session: Developing a national CBDC strategy.