Blockchain and central bank digital currency

Abstract

With the development of blockchain and digital currencies, central banks all over the world are accelerating the process of CBDC development. However, it is still controversial on adoption of blockchain in CBDC design. In the paper, we analyze both functional and non-functional requirements of CBDC design, and make a literature review on blockchain based CBDC schemes. Analysis findings show that permissioned blockchain is more suitable for CBDC than permissionless blockchain. Besides, there are some challenges in blockchain based CBDC, such as performance, scalability, and cross-chain interoperability. Our analysis is timely and can provide guidelines for blockchain based CBDC design.