Logo

What functions should a CBDC have?

There has been done a lot of research around the world in a broad dialogue with companies and general public authorities, in order to discuss how a proposed central bank digital currency concept should function. Those bilateral meetings were focused on how to find out how agencies and private agents could look upon a central digital currency, and what their views are on what range of services, properties and stability the system should have.

They all agree that a CBDC should have at least the following properties: A CBDC system should provide a comprehensive range of services in order for the end-user to derive benefit from it. The CBDC platform should be simple, scalable and flexible so that it can be integrated with other systems in the financial infrastructure. It should be possible to extend and adapt the range of services to existing and emerging needs if cash becomes increasingly marginalized. In addition, a CBDC should enable, for example, remote and online payments, functions which cash cannot manage.

A CBDC also needs to be designed so that everyone, as far as possible, can use it to manage their payments. This means that the CBDC must be widely available and easy to use and hence have a simple and instructive user interface. The aim is for it to be easy to use for groups in society that already find it difficult to manage digital solutions. As this overall target group is large and its various sub-groups have different needs, the work to design a central bank digital currency must take this into account. Furthermore, accepted international standards for accessibility, design, and usability must also be followed.

As instant payments are assumed to become the norm for future payments, a CBDC must fulfill tough requirements for transaction capacity and performance, that is, it must be possible to handle a large number of payments among many different parties efficiently, and it must be possible to settle each individual transaction without delay.

The CBDC should help increase robustness on the payment market. It must be built with the aim of reaching the highest possible accessibility even when disruptions occur. When disruptions occur that put the telecommunications network out of action, the CBDC should be able to function offline. Several e-identification solutions should be available and adhere to an e-identification system. However, it is important that these components are designed in such a way as to be able to complement each other in the event of major crisis situations.

Security and reliability will be particularly important parameters to integrate during the development process of the central bank digital currency platform (CBDCP). To have confidence in the system users and agents needs a reliable technical solution that gives confidence in the system. And on top of their list of requirements is the robust protection against cyber attacks.

This means that architecture, software, hardware, and communication in the technical solution must fulfill the highest security requirements and be thoroughly evaluated during beta and pilot testing phases of a CBDC. The same high standards must be held by suppliers and the future development and management of a CBDC system. The Central bank should put safety and security first. It’s important to develop secure cash that is impossible to counterfeit, and the same must apply to all new development of central bank digital currencies.

The CBDC system must also guarantee user integrity by offering the option of implementing a payment without anyone else apart from the payer and the payee being able to see it (third-party transparency). On the other hand, the system should make it possible to trace transactions, to prevent fraud and money laundering.

The majority of participants felt that an account-based CBDC could rationalize disbursements from agencies to citizens, companies, and organizations and make agencies less dependent on the banking system. The need for payments via registered letter and cash disbursements could also be reduced with a CBDC. The possibility to more easily trace transactions during special circumstances with the CBDCP and to have a greater knowledge of who the customer is, was something interviewed agencies felt was a good thing. In summary, Individuals, agencies, and companies are largely in line with the views of issuing a central bank digital currency and that a CBDC should have at least the above-mentioned properties included from the start.

iSETTLE.ORG

iSETTLE.ORG

iSETTLE.ORG

The world need examples on how to do it differently

Recent Posts

User Agreement

This is an agreement between the iSETTLE.ORG protector Foundation ( LEOPOLD VON GULLIOU FAMILY FOUNDATION ) a Private Interest Foundation (PIF) Recorded at the public registry office, at data card 22904, since March 19th, 2007, in the section of Private Interest Foundation. Apostille (The Hague Convention of October 5, 1961) certified in the Ministery of Foreign Affairs on March 23rd, 2007. Under Number: 133745/A  ( “iSETTLE.ORG”, “we”, “us”, or “our”) and you (together with iSETTLE.ORG, the “Parties” and each a “Party”). By using any iSETTLE.ORG service, whether through isettle.org, any associated website, API, or mobile application, you agree that you have read, understood, and accept all of the terms and conditions contained herein (the “User Agreement”), as well as our Privacy Policy.

1. GENERAL USE

1.1 Eligibility

By using the isettle.org Site and entering into this User Agreement, you affirm that you are an individual, at least 18 years of age or older, have the capacity to enter into this User Agreement, and agree to be legally bound by the terms and conditions of this User Agreement, including the Cookie Policy, the Privacy Policy and the Trading Principles as incorporated herein, as amended from time to time. In order to use the Services, you may be required to provide certain identifying information pursuant to our Compliance Program.

1.2 Modification

1.2.1 We may change the terms of this User Agreement at any time. Any such changes shall take effect when posted on the iSettle.org Site, or when you use the Services. If you have supplied us with an email address, we shall also attempt to notify you by email of changes to this User Agreement.

1.2.2 It is your responsibility to update your contact information, including but not limited to the email address provided to us (if any).

1.2.3 Read the User Agreement carefully on each occasion you use the Services. Your continued use of the Services shall signify your acceptance to be bound by the current User Agreement. Our failure or delay in enforcing or partially enforcing any provision of this User Agreement shall not be construed as a waiver of any of our rights.

Disclaimers and Limitations

Disclaimers. YOU USE OUR SERVICES AT YOUR OWN RISK AND SUBJECT TO THE FOLLOWING DISCLAIMERS. WE PROVIDE OUR SERVICES ON AN “AS IS” BASIS WITHOUT ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, NON-INFRINGEMENT, AND FREEDOM FROM COMPUTER VIRUS OR OTHER HARMFUL CODE. iSETTLE.ORG DOES NOT WARRANT THAT ANY INFORMATION PROVIDED BY US IS ACCURATE, COMPLETE, OR USEFUL, THAT OUR SERVICES WILL BE OPERATIONAL, ERROR-FREE, SECURE, OR SAFE, OR THAT OUR SERVICES WILL FUNCTION WITHOUT DISRUPTIONS, DELAYS, OR IMPERFECTIONS. WE DO NOT CONTROL, AND ARE NOT RESPONSIBLE FOR, CONTROLLING HOW OR WHEN OUR USERS USE OUR SERVICES. WE ARE NOT RESPONSIBLE FOR THE ACTIONS OR INFORMATION (INCLUDING CONTENT) OF OUR USERS OR OTHER THIRD PARTIES. YOU RELEASE US, AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES, PARTNERS, AND AGENTS (TOGETHER, “iSETTLE.ORG PARTIES”) FROM ANY CLAIM, COMPLAINT, CAUSE OF ACTION, CONTROVERSY, OR DISPUTE (TOGETHER, “CLAIM”) AND DAMAGES, KNOWN AND UNKNOWN, RELATING TO, ARISING OUT OF, OR IN ANY WAY CONNECTED WITH ANY SUCH CLAIM YOU HAVE AGAINST ANY THIRD PARTIES.

Availability of Our Services. Our Services may be interrupted, including for maintenance, upgrades, or network or equipment failures. We may discontinue some or all of our Services, including certain features and the support for certain devices and platforms, at any time.

Limited License

Limitations.  We grant you a limited, nonexclusive, non-transferable licence to access and use the Services and the isettle.org Site solely in accordance with the terms of this Agreement.

Credentials

Security.  You must keep secret all credentials associated with the Services. You are solely responsible for managing and maintaining the security of any information relating to such credentials and agree that iSETTLE.ORG shall not be held responsible (and you shall not hold us responsible) for any unauthorised access to the Services or any resulting harm you may suffer.

Compliance

Security.  Your access to one or more Services may be contingent upon satisfaction of our onboarding processes as well as our Compliance Program, which may include verification of your identity  and additional information we may request from time-to-time. The information we request may include, without limitation, personally identifiable information such as network address, name, email, address, telephone number, date of birth, official government-issued identification, and or other information we may reasonably deem helpful in satisfying our risk management or legal obligations. In providing this information to us you represent that it is accurate and agree to update your User Account information promptly, but in no event later than 14 days following any change in your information. Failure to provide information or update it promptly may result in Services being unavailable to you.

Communications

Update.  Any and all communications from iSETTLE.ORG may be provided to you via electronic mail at the address you provided when accessing the Services. iSETTLE.ORG shall not be responsible for any harm you may suffer as a result of your failure to receive any notice provided to you in connection with this User Agreement or your use of Services so long as such notice is provided. isettle.org may also communicate with you through other methods, including via telephone call, instant messaging or chat applications either operated by isettle.org or a third party.

Does iSETTLE.ORG respond to law enforcement information requests?

Yes. iSETTLE.ORG will respond to a valid order issued from a Panama Court coordinated by the Panama Central Authority (PCA) through a request for mutual legal assistance (MLA) or letters rogatory. Forward us (i) a valid subpoena issued in connection with an official criminal investigation for the disclosure of basic subscriber records, (ii) a valid court order; or (iii) a search warrant issued under the procedures described in the Federal Rules of Criminal Procedure or equivalent Panama warrant procedures upon a showing of probable cause for the disclosure, if any.

IF YOUR REQUEST INVOLVES IMMINENT RISK OF DEATH OR SERIOUS BODILY HARM:

If you are a law enforcement agent requesting information from iSETTLE.ORG that is likely to prevent imminent death or serious bodily harm, you may contact us on an expedited basis. Together with the appropriate documents listed above, send an email with “IMMINENT RISK” in the title. In the body of the email, include a brief attestation describing the imminent risk, and iSETTLE.ORG will try to respond on an expedited basis.

NON-US USERS and UNITED STATE USERS - No Trail

No Trial. By entering into this User Agreement, and or use iSETTLE.ORG you expressly waive your right to Dispute, Arbitration, a Trial, and right to participate in a class action lawsuit.

Termination

Services. We may close, terminate, enable or disable any or all of the Services, your User Account or your access to the Services at any time and for any reason. You may close your User Account at any time and for any reason. Depending on the Services available to you in your User Account, we may require you to take certain actions or provide additional information prior to closing such User Account. You are solely responsible for any fees already incurred or associated with the closing of your User Account, whether incurred directly by you from iSETTLE.ORG, or incurred by isettle.org on your behalf with a third party in order to complete any such action. Closing your User Account may not result in the deletion of information we hold about you or your activity.

Privacy Policy

Protection infromation. Privacy is of utmost importance at the iSETTLE.ORG Private Interest Foundation (PIS) and group of companies (“iSETLLE.ORG”). We recognise the significance of protecting information which is stored on our servers or network or is intended to be stored on our servers or network and which relates to an individual, organization, or Company. The data we protect are the “Personal Data” which is any information relating to an identified or identifiable natural person, sometimes called a data subject, and have made protecting the privacy and the confidentiality of Personal Data a fundamental component of the way we operate. This Privacy Policy informs you of the ways we work to ensure privacy and the confidentiality of Personal Data and describes the information we gather, how we use those Personal Data and the circumstances under which we disclose such information to third-parties.

This Privacy Policy is designed to address regulatory requirements of the jurisdictions in which iSETTLE.ORG (Foundation) is registered. In this Privacy Policy, the term “Service” and “Services” has the same meaning as described in the User Agreement, but excludes API services, which are governed by a separate agreement. If you do not agree with this Privacy Policy, in general, or any part of it, you should not use the Services. This Privacy Policy is periodically reviewed to ensure that any new obligations and changes to our business model are taken into consideration. We may amend this Privacy Policy at any time by posting an amended version on our website.