DLT and tokenisation for central banks
About the course
Participants on this course will delve into distributed ledger technology (DLT), 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
Introduction to distributed ledger technology
What is distributed ledger technology (DLT) and how does it work?
Overview of key DLT systems: public/private, permissioned/permissionless, and the blockchain
DLT applications across central bank payment and FMI functions
Comparison between traditional and DLT-based clearing and settlement systems
Opportunities and challenges associated with DLT-enabled payments
The role of tokenization in financial markets
Defining tokenisation for central banks: central bank money, bank deposits, stablecoins, crypto, etc.
Fundamental of tokenisation: common ledgers/synchronisation, smart contracts, and overall programmability
Supporting tokenisation with DLT
Examples of tokenisation by central banks
Implications of tokenisation for central banks
Tokenisation as a fundamental change to how financial markets operate and are structured
Potential to reduce existing financial market frictions: decreased costs, increased speeds, greater transparency, improved capital allocation, and support for further innovation
Risks to credit, liquidity, custody, and access, alongside operational and cyber risks
Effects on financial stability and monetary policy implementation
Importance of sound regulation, supervision, and oversight, in addition to robust governance and legal frameworks
Learning objectives
Understand the potential role of DLT for central banks
Learn the fundamentals of asset tokenisation
Explore current tokenisaiton 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
