Towards CBDC-supported Smart Contracts for Industrial Stakeholders

Abstract

The stakeholders of complex industrial-financial ecosystems and supply chains are interconnected in many ways, at many organisational and technical levels. Even in order to deliver a product or exchange various materials, various Information and Operational Technology solutions are required, etching the way towards the Industrial Internet of Things. Moreover, integrating the necessary legal and financial co-operations in the big picture is similarly important, where blockchains and Smart Contracts aim to provide the means. Nevertheless, new solutions should thrive not to disrupt current economic landscapes, but slowly transform and enhance instead. This article discusses solutions for supply chain trade use cases with over-the-counter derivatives, and argues the same in a world where Central Bank Digital Currency (CBDC) governs financial markets. It also provisions Arrowhead framework and Smart Contract based solutions for the issues there, such as matching bids, handling counterparty risks or physical settlements.