Designing a Central Bank Digital Currency (CBDC) Retail Model as a Payment System
Nima Rohmalia, I Gusti Bagus Baskara Nugraha · 2023
Currency is the value of a currency established as a valid means of payment in a country. The development of digitalization has made people accustomed to doing digital transactions by keeping physical money in bank accounts and digital wallets. This, makes banking institutions and non-bank institutions race for payment systems, debit cards, digital wallets, and digital money. Cash usage is declining significantly and can pose challenges in managing payment systems and policies. The central bank is difficult to monitor because the data is stored separately and not in one system. Then came the emergence of virtual currencies, which have a high risk because there is no official administrator overseeing them. It affects the stability of the financial system and is detrimental to society. The Central Bank is planning to introduce a new digital currency system called the Central Bank Digital Currency (CBDC). CBDC is a digital coin used to facilitate digital payments and reduce the risk of using unofficial virtual money. The research focuses on the design of a CBDC retail model that is used by the public to conduct transactions that leverage blockchain technology with the Hyperledger Fabric platform. The research proposes a business model and architecture for the blockchain network. The implementation of CBDC retail with Hyperledge Fabric responds to the challenges of the era of digitalization, which has a high level of privacy and data security. The central bank can monitor money flows and have direct access to the CBDC payment system.