Function before Form: Assumptions to Avoid when Designing Retail CBDC Systems – New Whitepaper by Crunchfish
Retail CBDC systems are challenging to implement in practice. There are many features of cash that are desirable to replicate in digital form, such as the ability to pay offline and with privacy. This whitepaper highlights the problems of making premature design decisions on form without realizing its limiting consequences on the function and presents alternatives that are more suited for delivering the desired function. Defining function before form is of paramount importance for a successful implementation of CBDC in practice.[A green and white sign Description automatically generated]