PwC, StanChart release analysis on CBDCs' role in future banking

The paper highlights CBDCs programmability and how they can revolutionise retail, trade, and supply chain finance.

Standard Chartered and PwC China recently published a whitepaper on the future of banking with Central Bank Digital Currencies (CBDCs). 

The paper, titled Co-creating the future ecosystem of banking with CBDCs, focuses on the practical uses of CBDCs, highlighting their programmability and how this feature can revolutionise retail, trade, and supply chain finance.

Cross-border payments using wholesale CBDCs have been successfully tested in pilots like mBridge, a collaboration between the Bank for International Settlements Innovation Hub and four central banks. 

Meanwhile, ongoing studies and pilots are being conducted for retail CBDCs in Mainland China, Hong Kong, and other jurisdictions. Recently, the Hong Kong Monetary Authority launched its e-HKD Pilot Programme, in which Standard Chartered was selected as a participant for its proposed offline payment use case of e-HKD.

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Given this context, the whitepaper delves into the future trajectory of CBDC development and its potential impact on digital payments. 

Specifically, Standard Chartered and PwC China have examined the integration of smart contracts with CBDCs, which holds the potential to drive innovation and reshape business models.

“Standard Chartered is optimistic about the future of CBDCs and their tremendous potential for the economy of China and the wider world. The power of CBDCs to create a seamless and innovative digital economy cross-border will be especially important in the context of the Greater Bay Area (GBA). Combining trust and programmability, CBDCs will transform ecosystems and the payments landscape for individuals and businesses across the region and beyond,” Anthony Lin, CEO of GBA Standard Chartered, said.