DLT and tokenisation for central banks
About the course
Participants on this course will delve into distributed ledger technology (DLT), the blockchain, asset tokenisation, and their significance for central banks and financial markets. The training will explain how DLT works, making distinctions between public/private and permissioned/permissionless systems. Key topics for tokenisation include fundamental features, types of tokenised assets, and applications for central banks. The course will equip participants with the practical knowledge necessary to assess the opportunities and risks associated with these innovative technologies.
Agenda
Module 1: Introductions
Introduction to distributed ledger technology
- What is distributed ledger technology (DLT) and how does it work?
- Understanding the blockchain as a type of DLT
- Fundamental DLT characteristics: public/private, permissioned/permissionless
Understanding the role of tokenisation
- Introduction to tokenisation and how it relates to DLT
- Functions of a tokenised vs token-less DLT
- Tokenisation design features: common ledgers/synchronisation, smart contracts, and overall programmability
Module 2: Instruments
DLT innovations in payments for central banks
- How are DLT and the blockchain related to digital currencies?
- Potential DLT applications in payments for central banks: CBDCs, stablecoins, crypto, cross-border, FX, etc.
- Comparison between traditional and DLT-based clearing and settlement systems
- Overview of recent DLT-enabled payments initiatives by central banks, e.g. Pontes, Agorá
DLT innovations in financial services
- How can DLT and tokenisation enable innovation beyond payments? The role of central banks in increasingly digitized financial markets
- Potential DLT applications across financial services: deposits, bonds, securities, reserves, registries, records, identities, etc.
- Overview of recent DLT initiatives in financial services by central banks, e.g. Appia, BoE DLT Innovation Challenge
Module 3: Implications
Key advantages of DLT and tokenisation
- Tokenisation as a fundamental change to how payments and financial markets operate and are structured
- Potential to reduce existing financial market frictions: decreased costs, increased speeds, greater transparency, improved capital allocation, enhanced resilience, expanded financial inclusion, and support for further innovation
Challenges and risks associated with DLT and tokenisation
- Risks to credit, liquidity, custody, and access, alongside operational and cyber risks
- Effects on financial stability and monetary policy transmission
- Technological hurdles: integration with legacy systems, interoperability, and scalability
- Importance of sound regulation, supervision, and oversight, in addition to robust governance frameworks
Learning objectives
- Understand the potential role of DLT for central banks
- Learn the fundamentals of asset tokenisation
- Explore current tokenisation projects by global central banks
- Examine the risks and benefits associated with tokenisation
Who should attend
Relevant titles and departments may include, but are not limited to:
- Directors of payments and market infrastructures
- Heads of payments systems oversight
- Heads of market infrastructure development/management
- Heads of retail payment instruments
- Heads of innovation/fintech/digital currency
- Payment systems officers
- Directors of monetary policy
- Policy analysts
- Chief strategy officers
- Risk officers
- Heads of clearing and settlement
- Payments & FMI departments
- Oversight division
- Market innovation and integration division
- Market infrastructure development division
- Risk division
- Strategy division
- Clearing houses and local regulators
Enquire about:
- Agenda and registration process
- Group booking rates
- Customisation of this programme
Season tickets options
Accreditation
This course is CPD (Continued Professional Development) accredited. One credit is awarded for every hour of learning at the event.
