After a short hiatus, the CBDC CoE Focus Group - a subset of the wider Working Group - has been working to define three use cases. Once these use cases are sufficiently clearly defined in outline, they will be presented to the full WG for further discussion and refinement, on the road towards pilot.
Our attempt to define three interesting, achievable uses cases for pilot has led us to the following.
Use Case 1: “Settling with CBDC in a single IIPS”
This is the most straightforward use case, and revolves around using a wholesale CBDC for settlement for a single Mojaloop-powered interoperable instant payments system (IIPS). It is intended as a regulatory pilot - testing the acceptability of an IIPS scheme holding wholesale CBDC on behalf of non-banks - rather than a technical proof of concept.
We understand that the World Bank have this operating as a Proof of Concept, and we are seeking to coordinate.
Use Case 2: “Settling with CBDC between multiple IIPSs in a single jurisdiction”
This builds on the first use case, extending it to include the use of a CBDC to settle between two peer IIPS schemes, as well as within those IIPS schemes. This is more a business process pilot than a regulatory pilot, building on the regulatory approach already piloted for use case 1, and adding extra complexity in settlement and reconciliation.
Use Case 3: “Settling with CBDC between multiple IIPSs in multiple jurisdictions”
This is the most complex use case. It builds on the first two, and adds the complexity of a cross-border transactions; so the two interacting IIPSs operate in different currencies, and operate under different regulatory and supervisory regimes.
This use case has not yet been finalised. A number of different scenarios have been proposed, and the Focus Group continues to work on them to develop something that is worthy of the attention of the wider Working Group.