Enabling open access to CBDCs for the first time

Challenge

Providing new wholesale and retail market participants the same access as commercial banks to central bank digital currencies (CDBCs) has many economic advantages. It gives participants the liquidity, for example, to use and trade CBDCs, instead of relying on cash reserves, and allows commercial banks to use CBDCs for deferred net settlement accounts with their Central Bank. It also frees up cash for commercial banks to provide to businesses and private customers, and allows banks to make pragmatic decisions on the use of CBDCs based on value and risk profiles.

Solution

Achieving this, however, is not easy, as every commercial bank in each jurisdiction must be independently connected to its domestic central bank. Furthermore, for global banks dealing with various central banks, this represents a new challenge, as the digital assets that power the CBDC are siloed: unless all participants are on the same DLT network, transacting is impossible. Unless, that is, the DLTs are interoperable. Quant’s Overledger DLT gateway delivers that interoperability.

Benefit

Overledger DLT gateway releases the true potential of DLTs, and facilitates the seamless flow of CBDCs between participants, no matter what underlying technology they are using. By allowing all participants to access central bank money, Overledger helps to stimulate economies by removing the friction in cross-border trade.

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