公共数字货币时代（英文）-GDF

TheAgeofPublicDigitalCurrency:AGuideToIssuanceGLOBALDIGITALFINANCEsupportedby:02TheAgeofPublicDigitalCurrency:AGuideToIssuance|October2020ContentsForeword04Authorship05I.Introduction07II.Howcryptocurrenciesdeveloped08III.Solutionsavailabletoday11IV.Policyconsiderations12V.Summary18VII.Furtherreading1804TheAgeofPublicDigitalCurrency:AGuideToIssuance|October2020ForewordInthepast18monthsthesubjectofCentralBankDigitalCurrencyhasaccelerateddramaticallyfrompotentialresearchareas,tokeypolicyagenda.Unquestionably,thishasbeendrivenbydevelopmentsinFacebook-initiatedLibrawherethespectreoftheprivatesectorplayingmoreofaroleinmediumofexchangeandstoreofvaluewasentirelypossible.Inthistimewe’vealsoseenthePeople’sBankofChinadevelopit’sDigitalCurrencyElectronicPaymentplatform(DECP),whichitisaimingtostreamlineandimprovetheconnectivitybetweencentralbankpayments,thecommercialbankingsectorandbigtechswhoplayacrucialroleinpayments.InitsrecentwhitepaperonCBDCstheBankofInternationalSettlementsfoundthatatleast48centralbanksnowhavesomeactiveresearchorproofofconceptindevelopmentforCBDC.SincetheriseoftheCOVID-19pandemic,cashcirculationhasdroppedsignificantlyinmanyeconomies,digitalpaymenttypeshaveincreased,andthefocusonefficient,fairandtransparentpaymentshasbecomehighprofileinallareasoftheeconomy.Thesubjectisvast,andoffersopportunitiestopotentiallydriverealpolicyopportunities,marketefficiencyandperhapsmostexcitingly,betteroutcomesforconsumersaroundtheworld.Thereareanumberofgreatdocumentsandpapersonthissubject,howeveritisincreasinglydifficulttostayontopofitall.So,GDF’sDigitalCurrencyWorkingGrouphaspulledtogetherthisreporttoofferthecurrentstateoverviewfromanindustryperspective.LawrenceWintermeyerExecutiveCo-Chair,GlobalDigitalFinanceSimonTaylorCo-Chair&Guarantor,GlobalDigitalFinance05WorkingGroupCo-chairsJohnCollinsPartnerFSVectorJohnhasdiversegovernmentandindustryexperienceandisagloballyrecognizedfintechandcryptocurrencypolicyleader.HeservedasthefirstHeadofPolicyforCoinbaseandasVicePresidentforInternationalPolicyattheBankersAssociationforFinanceandTrade,theinternationalsubsidiaryoftheAmericanBankersAssociation.HemostrecentlyledtheU.S.officeforRedFlagConsulting,aglobalpublicaffairsandbusinessconsultingfirm.Priortohistimeinindustry,JohnservedasSeniorProfessionalStafffortheU.S.SenateCommitteeonHomelandSecurityandGovernmentalAffairsandwastheleadstafferfortheU.S.Congress’firstworkintovirtualandcryptocurrenciesin2013.LavanThasarathakumar,HeadofRegulatoryAffairs,EMEA,GDFLavanisaformerAdvisorattheEuropeanParliamentandadvisedonanumberoffilesincluding:fintech,virtualcurrenciesanddistributedledgertechnologies.HewasalsotherapporteurontheEuropeanCrowdfundingServiceProvidersRegulationandtheComprehensiveEuropeanIndustrialPolicyonArtificialIntelligenceandRobotics.InSeptember2017,LavanhelpedestablishtheEuropeanParliamentAll-PartyInnovationgrouptopromotediscussionsonmattersconcerningemergingtechnologyandwhatpolicyresponsestheParliamentshouldpromote.AuthorshipThisreporthasbeendevelopedbythemembersofGDF’sDigitalCurrencyWorkingGroup,whichfocusedonhowgovernmentscanprovidepaymentsusingmodern,digitaltechnologies.Itprovidesfirstprinciplesthatshouldbeconsidered,offersexamplesofprivatesolutionsthatexistandworktoday,andprovidesaframeworkfortheconstructionofmodern,effective,andfastergovernmentdisbursementstocitizensandbusinesses.•ElsaMadrolle•DavidAbner•VipinBharathan•BillGenovese•LeeBrenner•LexSokolin•NickDavies•JohnJefferies•MarcPowers•HerveFrancois•DianaBarreroZalles•SeanLiuAspecialthanksthefollowingmembersoftheDigitalWorkingGroup07I.IntroductionOncelimitedtotheattentionofasmallgroupofcomputerscientists,politicalactivists,andeconomictheorists,digitalcurrenciesarenowbeingactivelydiscussed,developed,andlaunchedbycentralbanksandgovernmentsaroundtheworld.AsurveyfromtheBankforInternationalSettlements(BIS)showedthat70%ofcentralbankrespondentshavebeenexploringCentralBankDigitalCurrencies(CBDCs).BostonConsultingGroupresearchreveals48countrieshaveresearched,piloted,developed,orlaunchedCBDCprojectsasofAugust2020,clickheretoviewacountry-by-countryoverview.TherecentlylaunchedBISInnovationHubhasCBDCsasacentraltopicinitsworkagendatosupporttheinnovationprioritiesofthecentralbankcommunity.TheCOVID-19pandemicandresultingeconomiccrisishaveonlyhastenedtheseconversationsandwork,bringingforththeneedforsecureanddirectdigitalpaymentmechanisms,particularlytodistributestimulusfunds.Moreover,theprivatesectorandglobalprojectshaveraisedquestionsaroundthefutureuseoffiatorsovereigncurrenciesandofcash,howtheprivatesectorandgovernmentwillinteractandcontributetothatfuture,andhowpolicymakersandthepublicatlargeshouldapproachit.ThispaperdiscussesCBDCsinthegreatercontextofcryptocurrencyandstablecoindevelopments,thedigitalwalletsinwhichtheyareheld,andpolicyandsecurityconsiderationsthatarekeytosuccessfulimplementation.Withthatinmind,wehopetoprovideaframeworkandrecommendationsfortheglobalpolicymakingcommunityonthepublicpolicychoices,practicalrealities,andchallengesofdeployinga“digitaldollar”orpublic“digitalwallet”infrastructure.11Forthepurposesofthispaperwewilluse“DigitalDollar”torepresentanyfiatcurrencyissuedbyacentralbankorgovernmentthatisintendedforretailuse.08TheAgeofPublicDigitalCurrency:AGuideToIssuance|October2020II.HowcryptocurrenciesdevelopedThefirstacademicpaperonblockchaintechnologyandattemptsatcreatinguntraceabledigitalpseudonymsthatwouldactasdigitalcurrenciesemergedshortlyafterthecreationoftheinternetinthe1990s.ItwouldtakenearlytwodecadesbeforeSatoshiNakamoto’swhitepaperonBitcoinin2008markedthebirthofmoderncryptocurrencyasweunderstandittoday.In2009thefirstBitcoinwasmined,andin2010thefirstvirtualassetexchangewascreated.Thecomputersciencebreakthroughthatenabledblockchaintechnologyisevolvingquicklyandhassincecreatedahugevarietyofapplications,withhundreds,ifnotthousands,ofcoinsandtokenslaunchingorcreatedfromorfornetworksandplatformseachyear.However,lowlevelsofliquiditypairedwithpricevolatilityseverelylimitedthemainstreamusecaseofdigitalassetpaymentsuntiltheintroductionofstablecoins.Astablecoinisacryptocurrencyordigitalcurrencythatisstructuredtominimizepricevolatility,thusenablingittoadequatelyserveasanon-fluctuatingmediumofexchangeandastoreofvalue2.Themajorityofstablecoinsaredesignedtobeequalinvaluetoafiatcurrency(e.g.theUSdollar).Thereareanumberofstablecoinsinthemarketthatvaryinstructureandcommonuse.Adigitaldollarisonlyonesuchexample.Theworld’sfirstdigitaldollarstablecoin,BitUSD,wasreleasedinJuly2014;however,itwasn’tuntilTetherwaslistedonBitfinexin2015thattheassettypegainedglobalnotoriety.By2019,therewasaproliferationofproposedstablecoinannouncements,tobeusedbothinprivateandpublicblockchaincommerce,fromJPMorgan,totheLibraAssociation,tothecentralbankofChina.InMarch2020,astheUSCongressconsideredlegislationtosoftentheeconomicrecessioncomingfromtheCOVID-19pandemic,severalofitsmembersproposedlegislationthatfeaturedaCBDC.ThissolutionincorporatedadigitalwallettoenableallAmericans,includingthemostvulnerableandunbanked,toreceiveCOVID-19federalaiddirectlyviaa“digitaldollar”.2Acryptocurrencytendstobedefinedasatokenor“coin”thatutilizesanopenblockchaintofunction.Adigitalcurrencymayutilizeanopenblockchainbutcouldalsobeenabledbya“closed”orproprietaryblockchain.A.AnalyzingstablecoinsViewingstablecoinsfromdifferentanglescanproducedifferentperspectivesonthe"primacy"oftheirindividualcharacteristics,whichmayaffectpolicymaking.Threeperspectivesforconsiderationarebacking,pricinganddecentralization:•“Backing”-howtheyarecollateralizedorstabilizedtocontrolvolatility(e.g.collateralizedorbackedwithfiatmoniesorstabilizedwithanalgorithm).Weshouldnotethatbeingbackedandcollateralizedmayhavedifferentlegalimplicationswithrespecttoinvestorrecourseinthecaseoflosses(e.g.whetherinvestorshaveaclaimtoassetsheldinreserve).•“Pricing”-thevaluethattheyreference(e.g.1USD,thevalueof1gramofgold,orabasketofcurrencies).•“Decentralization”-e.gdotheyrestonafullytransparentpublicblockchainoronapermissioned,privateblockchainwheredataprivacy,participantsandscalingcanbemanaged?FormoreonthistopicreadersshouldconsulttheGlobalDigitalFinancepaper2019.33https://www.gdf.io/wp-content/uploads/2019/10/GDF-Stablecoin-Key-Considerations.pdf0910TheAgeofPublicDigitalCurrency:AGuideToIssuance|October2020B.StablecoindevelopmentsandusecasesWhilestablecoinsinitiallysprungfromprivateendeavourstohelpinvestorshedgeagainstthevolatilityofthecryptocurrencymarket,aCBDCdollarcouldbeissuedbytheFederalReserveand/orOCCanddisseminatedthroughtheUSviatheexistingtwo-tieredbankingsystemoftraditionalbankinginstitutionsandintermediariestoendusers.Itwouldhavetobeinteroperableandco-existwithcurrentandfuturefinancialinfrastructurebothdomesticallyandabroad.Itshouldactasacatalystfortheprivatesectortoinnovateandupgradethisinfrastructure.WiththeUSdollarasanexample,tokenizingormakingtheUSDdigitaltransformsitfromananalogfiatcurrencytoadigitalcurrencythatcanbesharedandtrackedacrossborderswiththegreatestofease,thuspreservingtheUSD’sstatusastheworld’spremierreservecurrency.NewprojectssuchasHyperledger’seThaler4(builtonEthereum)andtheDigitalDollarProject5continuetoadvancethedigitalUSDcaserapidly.Thereareanumberofusecasesthatrequirereducedvolatilitytoeventuallyhaverealconsumeradoption:•Remittance-requiresreducedvolatilitywhilepaymentsarebeingprocessed•Commerce&payments-foranybusinesstoacceptday-to-daypayments,salaries,etc•Financialinclusion-unbankedandunderbanked•Lendingmarkets-long-termissuances•Storeofvalueforlong-termhedging-tradersorminers•Escrow•Alternativebanking4https://decrypt.co/23603/ethaler-time-to-issue-digital-dollars-on-ethereum5https://www.digitaldollarproject.org/C.RolesofdigitalwalletsAcryptocurrencywalletisacriticalcomponentofthecryptocurrencyecosystem.Itisapieceofsoftwarethatverifiesownershipofthekeysusedtodigitallysigncryptocurrencytransactionsfordistributedledgers.Walletscomeinseveralforms,includingsoftwareandhardwarewallets,andcanbedeemed“hot”or“cold”.“Hot”walletsareaccessibleoveraninternetconnectionandavailableforopeninteractionbyusersontheblockchain.Thisincreasesaccessbutalsotheirsusceptibilitytohackingandtheft.Coldwalletsaretypically“offline”,notaccessibleviaaninternetconnection.6Digitalcurrenciesissuedbycentralbankswillrequirethecreationofdigitalwalletsforretailuse.Thisposesadditionalquestionsaroundtransparencyandgovernance.InApril,draftlegislationwasproposedintheUSCongressthatsuggestedtheFederalReserveitselfwouldmaintainwalletsonbehalfofindividuals,inadditiontoissuingtheunderlyingdigitaldollars.7Thoroughlyunderstandingthefunctionandchallengesofadigitalwallet,includingthedifferencesbetweencustodialandnon-custodialwallets,formsakeypartofthestrategyfordeployingastablecoin.6Asimplewaytothinkabout“hot”vs.“cold”isthedifferencebetweenabankteller’sdrawerandthebank’ssafe.7https://www.coindesk.com/digital-dollar-reintroduced-by-us-lawmakers-in-latest-stimulus-bill11III.SolutionsavailabletodayThereareawidevarietyofstablecoinsavailabletoday.AsofJune2020,thereweremorethan50differentstablecoinsavailableinthemarketforuseortrading,withawidevarietyofupcomingnewinitiatives.ThemostpublicizedistheLibraproject,expectedtoenterthemarketsometimeinlate2020orQ12021.Thefollowinggridpresentsthelargestprojectscurrentlyinthemarket,asofSeptember20,2020,withaviewofassets,collateralstructure,andsomeadditionaldetails.IssuerTickerMkt.Cap($)%ofStablecoinMarketBackingDetailsTetherUSDT9,142,785,84186%FiatOwnedbyBitfinex,seenasawaytohaveexposuretohedgeintoamorestableassetwithoutleavingthedigitaluniverse.CentreUSDC740,135,0317%Fiat1:1USD,ERC20standardtokenonEthereumNetwork,createdbyCircleandCoinbase.PaxosPAX251,902,5242%Fiat1:1USD,baseduponthePaxosStandardtokens.BinanceBUSD179,423,6692%Fiat1:1USD,conversiontoothercoinsonBinance(USDT,USDC,TUSD,PAX),ERC20andBEP-2.TRUETUSD140,107,7531%Fiat1:1USD,ERC20standardtokenonEthereumNetwork.HuobiHUSD121,677,9081%Fiat1:1USD,runbyPaxos,similarstructure.MakerDAODai10,180,5090%CryptoCollateralizedbypooledEtherandmulti-collateralDaithatarepricestabilizedagainsttheUSD,usingcryptoascollateral.Requiresover-collateralizationandcreatedadebtpositionofthecollateralforcreationoftheDai.GeminiGUSD8,653,1920%FiatIssuedbyNYTrustCompany,strictlypeggedtoUSD1:1,ERC20standardtokenonEthereumNetwork.Source:[cryptoslate.com8/25/20]12TheAgeofPublicDigitalCurrency:AGuideToIssuance|October2020IV.PolicyconsiderationsA.SecurityAdigitaldollarwillneedtobedesignedwithsecurityinmindfromtheoutset,beginningwithaformalspecificationoftheprotocolthatenablesit.Thisspecificationshouldbesubjectedtocarefulpublicreviewandtesting.Awell-designedsystemofrolesandpermissionswillbecriticaltoprotectthesystemfrommaliciousadministratorsandhacking.Whenexpertreviewhasdeterminedthespecificationtobevalid,itmaythenproceedtoimplementationusingamodernsystemsprogramminglanguage.Multipleimplementationsmaybebeneficialforenablingaresilientnetwork.Theimplementation(s)shouldthenbeformallyverifiedagainstthespecification.Foradditionalassurance,otherformsofsecurityassessmentshouldbeperformedaswell,includingmanualcodereviewandautomatedanalysistechniques,suchasfuzztestingandsymbolicexecution.Duringtheearlystages,thenetworkshouldhavenomorethantheminimumnecessaryfunctionality.Additionalfeaturesmaybeaddedovertimebyiteratingontheprocessdescribedabove.Abugbountyprogramshouldbecreatedtoincentivizesecurityresearcherstoreportvulnerabilitiessotheymaybeaddressedbeforetheycanbeexploited.Therecommendationsaboveaddressthesecurityconsiderationsofthedigitaldollarprotocol.Similarprecautionswillberequiredateverylayerofthestack.Forexample,theusersofadigitaldollarwillrequireeducationand/orrobusttoolsenablingthemtosafelymanagetheirfunds.B.PrivacyTheprogrammablenatureofvirtualassetscanenablemorenuancedprivacycontrolsandsupportprivacybydefault.Forinstance,privacyenabledCBDCscouldenableuserstorevealprivatedetailswhentheychooseandenableauthoritiestoviewtransactiondetailsonlargeorsuspicioustransactions.Blockchainanalyticshasthepowertoidentifyillicitandhigh-risksourcesoffundsandprovidesgreatertransparency.Thevisibilityaffordedbydistributedledgertechnology(DLT)enablesgreatervisibilityintotransactions,offeringtheabilitytomoreeasilyidentifypotentiallyillicitactivity.Thatsaid,thiscapabilitymustbebalancedwiththepotentialabusethatcouldarisewithunnecessarysurveillance.Inordertomaintainthelevelsofconsumerprivacyweenjoywithcash,neitherthecentralbanknoritsgovernmentshouldhavedirectaccesstouniversalunshieldingcapability(akanobackdoors).TransactionsshouldonlybeunshieldedbygovernmentauthoritieswhenthevirtualassetsareusedinillicitpurchasesorwhentheCBDCisusedfortheproceedsofillicitcommerceasevidencedbyblockchainanalytics.Further,perhaps,thisshouldonlybealloweduponcourtreviewandorder.Considerationsshouldalsobehadofwhethernoticeshouldbegiventothepartiesinvolved.Privacyconcernsareheightenedwithdigitalcurrenciesbecausetheycouldexposetheuser’sentiretransactionhistoryandnetworth.Essentially,theprivacymechanismshouldprotectwalletbalancesbydefaultandonlyrevealbalancesrequiredtosettlethetransactionathand(e.g.abaristashouldnotlearnhiswealthypatrons’networth,northecardealerknowthatthestudentspentherlastpennyontransportation).Inmanycountries,privacyandfreedomofspeechareprotectedrights.13C.Anti-Moneylaundering(AML)AsCBDCsmovetowardthemainstream,itwillbecriticaltodefendconsumerprivacywhilestillprotectingsocietyfromharmthroughillicitfinance.AnyCBDCpaymentsystemshouldbecompliantwithAML/CFTregulatoryrequirements.Thisshouldbedonewithoutcompromisinguserprivacy,asprivacyisvitaltoaCBDC’sadoptiontobecomingatrustedandwidelyusedmediumofexchangeforconsumers.Asthevirtualequivalenttofiat,itisfeasibletoreplicateandeventunetheprivacyaspectsofcash,whilestillmaintainingcompliancewithAML/CFTregulations.Similartovalue-basedreportingfortransactionsoverathreshold,thedepositorsintoacentralbankdigitalwalletshouldbeexpectedtodemonstratethesourceoffundsfortransactionsoverathresholdamountof$1000or$3000dependingonthejurisdiction.Suspicioustransactionsuncoveredthroughblockchainanalytics,customerinterviews,orotherwiseshouldbeautomaticallyreportedtothejurisdiction’sfinancialinvestigationunits.CBDCsshouldbeexpectedtocomplywiththeFATFtravelrule,Recommendation16,andcross-bordertransactionsinvolvingjurisdictionsthatdonotenforcethetravelruleshouldberestrictedafterthesunriseperiod.D.IdentityInaninstitutionalsettingforwholesaleCBDC,institutionalpracticeswithanappropriateprocessforstrengtheningprivacymustbefollowed.Smallertransactionsmayhaveasmaller,morefocusedquorumcomparedtolargerones.Amulti-tierapproachispossible,withtheprivatekeysbeingheldinacoldwalletoraHardwareSecurityModule.Appropriatemulti-partyceremonieswouldbeusedtoaccessthesegregatedkey,whichneverleavesthesecurepremises.Externally,anorganizationalwalletcanlinktotheLegalEntityIdentifieranchoredinaregistryliketheGlobalLegalEntityIdentityFoundation.Thiswaythecertificatesandpublickeysarelinkedtorolesintheorganization.Revocationandtimelyupdatestorolesarealwaysthegreatestchallenges.ForaretailCBDC,risk-basedidentitymanagementisthekey.Multi-factorauthentication,suchasbiometrics,strengthenstheconnectionofuseridentitywiththedeviceidentity.Secureandregulatednationalidentitysystemshavehelpedmanycountriesleapfrogintothedigitalage.Forsmalltransactionsbelowtheequivalentof$1000,FATFguidanceallowsforanonymousaccountstoparticipate.SmallCBDCtransactionsshouldbeallowedtohappeninatruepeer-to-peermanner,evenindisconnectedsettingswherethereisnointernetconnectivity.Walletdesignwillbekey,andwalletsforgeneraldistributioncanrelyonavarietyofplatforms:mobilephonesandtabletsareanaturaloption,andinexpensivesmartcardsthathaveinbuiltcryptographyareanother.Today,cashcanbeheldbynon-citizens,tourists,orresidentsofexternalcountries;retailCBDCwalletsshouldallowsuchpeer-to-peertransfersaswell.Whenitcomestolargeramounts,heldortransferred,sovereigngovernmentswillinsistontransactionsbeingcontrolledbetweenidentitiesthatareformallycheckedusingKYC/AMLand/orothermethods.E.Issuance/GovernanceInmostcountries,itwouldbetheprovinceoftherespectivecentralbankortreasurydepartmenttoissueaCBDCordigitaldollar,asitisalreadyresponsiblefortheissuanceofpapercurrency.Thedigitaldollarwouldbedistributedthroughtheexistingbankingsystem;however,intheU.S.,newfederallegislationwillneedtobeenactedtoauthorizethedevelopmentanduseofadigitaldollar.FortheUnitedStates,newlegislationshouldconsiderauthorizingtheOCC,inconsultationwiththeFinancialStabilityOversightCouncil(FSOC),withprimaryauthoritytoissueregulationsontheissuanceandpermittedusesoftheCBDCdollar.InJuly2020,theOCCformallyallowedfederallycharteredfinancialinstitutionstomaintaindigitalcustodyservicesfortheirclients,ordigitalwallets.Thisisaclearprecursortoadigitaldollar.ItisanunlikelycoincidencethatBrianBrooks,thenewheadoftheOCC,istheformerCLOatCoinbaseandaformeractivememberofGDF.14TheAgeofPublicDigitalCurrency:AGuideToIssuance|October2020TheFSOCwasformedfromtheDodd-FrankWallStreetReformandConsumerProtectionActof2010andisstatutorilymandatedtocreatecollectiveaccountabilityofits15federalandstatemembersforrisksandresponsetoemergingthreatstoU.S.financialstability.Amongotherthings,theregulationswouldbeexpectedtoconsiderAML,privacy,cybersecurity,interoperability,custody,andidentityissues.Policymakersshouldthinkseriouslyandthoughtfullyastowhoisbestsuitedtodevelopandissueadigitaldollarasitisagrowingconcernamongstpublicandprivatestakeholdersalike.F.CustodyAretaildigitaldollarmayendupbeingingreatdemandduetoitsliquidityandzeroratelowerbound.Custodialservicesbundledwithotherservicesmaybecomethenormforsuchanasset,especiallyforlargeholdingsofretaildigitaldollars.Retaildigitaldollarstendtofollowoneoftwomodels:account-basedortoken-based.Mostoftheretaildigitaldollarproposals,suchastheonesofferedintheUSthatseektoemulatecashareexploringatoken-basedapproach.Almostallofthemcallforatwo-tiersystem.Asdiscussedearlier,digitaldollars,beinganinherentlydigitalproduct,requirescustodythroughadigitalorganizationalwallet.Self-custodyforsmalleramountsandforretailspendingcouldbeaccomplishedthroughapersonalwallet,perhapsheldandaccessibleviaanindividual’smobilephone.Foratoken-basedmodel,theactualtokenswouldfollowcurrentregulatio