Wholesale central bank digital currency
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(wCBDC).
A wholesale central bank digital currency is one designed for wholesale transactions only, between financial institutions that each hold reserves in a central bank.
- Pilot project eliminates barriers in siloed financial market
- "Economically and legally, the wholesale CBDC used in Helvetia III is equivalent to sight deposits on the Swiss National Bank balance sheet...
- A key difference to sight deposits is that the pilot makes tokenised central bank money available on the same third-party platform where the tokenised assets are held.
- This eliminates barriers in today’s siloed financial market infrastructures where financial assets and central bank money are usually held on separate systems that are linked in order to synchronise payments and asset transfers.
- With wholesale CBDC as piloted in Helvetia III, assets and central bank money are instead closely integrated.
- This reduces the need for synchronisation and reconciliation and facilitates programmability."
- Naresh Aggarwal, associate director, policy & technical, ACT - July 2024.
See also
- Account
- Balance sheet
- Cash management
- Central bank
- Central bank digital currency (CBDC)
- Central bank money
- Cryptocurrency
- Currency
- Digital currency
- Distributed ledger
- e-krona
- e-money
- Fiat currency
- Gold standard
- Helvetia III
- Infrastructure
- Libra
- Money
- Multi-CBDC arrangement
- Programmability
- Reconciliation
- Reserve
- Retail central bank digital currency
- Sand Dollar
- Sight deposits
- Stablecoin
- Swiss National Bank (SNB)
- Wholesale markets
