Currency Research Podcast: Digital Currency Use Cases

Episode Description

We had the pleasure of engaging with Claire Conby, the Executive Director and Operations and Innovation Lead at the Digital Pound Foundation. Together, we explored the cutting-edge developments in payment innovation and technology, with a special focus on Central Bank Digital Currencies (CBDCs) and the pivotal role of the Digital Pound Foundation.

Advocating for a Digital Pound: The Mission of the Digital Pound Foundation

Claire Conby introduced us to the core mission of the Digital Pound Foundation, which champions the creation of a well-designed digital pound. The foundation is at the forefront of thought leadership in the digital money ecosystem, advocating for strategic partnerships and knowledge sharing among global digital currency organizations, including the Digital Euro Association and the Digital Dollar Project.

Retail Use Cases and the Promise of CBDCs

Our conversation with Claire shed light on the compelling retail use cases for CBDCs. We discussed the necessity of identifying use cases that would entice retail users to transition from traditional payment methods to CBDCs. The potential for innovation in programmability, micropayments, and enhanced control over money was a highlight, showcasing how digital currencies can streamline processes and reduce costs.

Balancing Innovation with Privacy

A key challenge we addressed was the need to balance the programmability of digital currencies with privacy and consumer choice. We also examined the possibility of CBDCs coexisting with other forms of digital money, such as stablecoins and deposit tokens. The importance of educating retail users and ensuring transparency and financial inclusion across different global contexts was emphasized.

Financial Inclusion and the Role of Policy

The potential for CBDCs to foster financial inclusion was a central theme of our discussion. We delved into the policy and regulatory considerations that must be addressed to enable this. The speakers highlighted the importance of policy, legal, and regulatory frameworks in facilitating access to digital forms of payment without requiring full integration into mainstream financial services.

Sustainable Finance and the Digital Pound Foundation’s Initiatives

Sustainable finance emerged as a significant opportunity within the digital currency landscape. The Digital Pound Foundation is set to launch a digital sustainable finance working group, aiming to integrate sustainability into the digital currency space and produce thought leadership on the subject.

Looking Ahead: Proofs of Concept and Collaborations

Looking to the future, the Digital Pound Foundation is moving from ideation to action, focusing on developing proofs of concept for CBDC use cases. They are also working on stablecoin regulation and engaging with regulatory authorities. The goal is to expand their community of members and broaden the scope of discussions and output.