Beyond transactions: exploring non-payment applications of CBDC infrastructure

The global exploration of central bank digital currencies (CBDCs) has primarily focused on their potential to revolutionise payment systems. From enhancing financial inclusion and streamlining cross-border transactions to providing a resilient alternative to cash, the payment-centric benefits of CBDCs are widely discussed. However, to truly grasp the transformative potential of CBDC infrastructure, it is crucial to look beyond mere transactions and delve into its broader applications. The underlying technology and design principles of a well-conceived CBDC could serve as a foundational digital public infrastructure, enabling a host of non-payment functions that could significantly improve governance, public services and citizen well-being.

The fundamental characteristics of a CBDC such as its direct liability of the central bank, its potential for programmability, together with the secure, verifiable nature of its underlying ledger technology (whether centralised or distributed), open …