[Annotated] A primer on blockchain-based versions of central-bank money

A BIS report advises: proceed with caution^[각주:1]

Bitcoin, Ethereum, XRP, Stellar, Cardano: the infant world of^[각주:2] cryptocurrencies^[각주:3] is already mind-bogglingly crowded^[각주:4]. Amid^[각주:5] the cacophony of^[각주:6] blackchain-based would-be^[각주:7] substitutes for^[각주:8] official currencies, central banks from Singapore to Sweden have been pondering whether they should issue digital versions of their own money, too. None is about to do so, but a report prepared by central-bank officials from around the world, published by the Bank for International Settlements^[각주:9] on March 12th - a week before finance ministers^[각주:10] and central-bank heads from^[각주:11] G20 countries meet in Buenos Aires - offers a guide to how to approach the task. 

The answer? With care^[각주:12]. For a start^[각주:13], it matters who will be using these central-bank digital currencies (CBDCs). Existing^[각주:14] central-bank money comes in two flavors^[각주:15]: notes^[각주:16] and coins available to anyone; and reserve^[각주:17] and settlement accounts^[각주:18] open only to commercial banks^[각주:19], already in electronic form (though not based on blockchain) and used for interbank payments^[각주:20]. Similarly^[각주:21], CBDCs could be either widely available or tightly restricted. A CBDC open to all would in effect^[각주:22] allow anyone to have an account at the central bank. 

CBDCs could be transferred either "peer to peer", like cash, or through the banking system. They could be held anonymously, preserving the privacy of cash, or tagged, making it easier to trace^[각주:23] suspicious transactions^[각주:24]. Should they bear interest^[각주:25], that would affect demand not only for CBDCs but also for cash, bank deposits^[각주:26] and government bonds^[각주:27]. 

The report weighs up^[각주:28] CBDCs' possible effects on payment systems, monetary policy^[각주:29] and financial stability. A steep decline in^[각주:30] the use of cash could strengthen the case for a widely available CBDC. In Sweden the Riksbank is contemplating an "e-krona" for^[각주:31] small payments. But in most countries, despite the growing use of cards, accelerated by^[각주:32] the advent of^[각주:33] contactless payments^[각주:34], cash remains popular. Experiments with a CBDC just for interbank payments, says the report, have "not shown significant benefits".

A widely available, interest-bearing^[각주:35] CBDC could, in principle^[각주:36], tighten the link between monetary policy and the economy. An interest rate tied to the policy rate may put a floor under^[각주:37] money-market rates^[각주:38]. Banks may have little choice but to pass changes in the CBDC rate on to depositors^[각주:39]. Negative rates would be easier to implement, especially if high-denomination^[각주:40] banknotes^[각주:41] were abolished^[각주:42]. But all this is uncertain. Retail depositors are less sensitive than institutional investors to^[각주:43] changes in rates. Central banks already have plenty of tools. The authors are not sure that the putative gains^[각주:44] yet warrant creating^[각주:45] CBDCs. 

On financial stability, they are more cautious still^[각주:46]. In times of stress^[각주:47], depositors flee^[각주:48] wobbly banks for^[각주:49] safer homes - and a CBDC would allow "digital runs" to the central bank. Even in normal conditions, banks would face higher funding costs if they had to compete with the central bank for deposits. Digital versions of currencies used internationally (eg,^[각주:50] the dollar) could worsen these complications^[각주:51], if foreigners were free to use them. 

Central bankers focus more on the rise of private crypto-currencies, warning that they are speculative gambles^[각주:52]. Expect more such admonitions in^[각주:53] Buenos Aires - and no rush to mint CBDCs^[각주:54]. 

1. proceed with caution ; 조심스럽게 진행하다, 주의를 기울이다 [본문으로]
2. infant ; 2. 초창기의, 초기의 [본문으로]
3. cryptocurrency ; A digital currency based on a cryptographic system. [본문으로]
4. mind-boggling ; [형용사] (비격식) 상상도 안 되는; 도저히 이해할 수 없는; 너무나 놀라운 ;; 참고 ; boggle [본문으로]
5. amid ; [전치사] [문어] …의 한복판에; …이 한창일 때에 [본문으로]
6. cacophony ; 1. 불협화음(discord)(opp. harmony). ;; 2. 귀에 거슬리는 소리, 불쾌한 음조(harsh or jarring sound)(opp. euphony). [본문으로]
7. would-be ; [명사] [경멸적] …지망자; 자칭[사이비] …. ;; [형용사] 형용사《한정용법》 1. [경멸적] 자칭의, …연(然)하는, 사이비의; 독선적인. ;; 2. …으로 되려고 하는, …지망[예비]의. [본문으로]
8. substitute for ; …을 대신하게 되다, …대신으로 쓰다. ;; to take the place of somebody/something else [본문으로]
9. BIS ; the Bank for International Settlement, 국제 결제 은행 [본문으로]
10. finance minister ; [명사] 재무 장관 [본문으로]
11. head ; 5. OF GROUP/ORGANIZATION | [C , U] (단체・조직의) 책임자 [본문으로]
12. with care ; 주의 깊게, 신중히; (포장·꼬리표 따위에서) 취급 주의 [본문으로]
13. for a start ; (비격식) 우선[먼저] [본문으로]
14. existing ; [명사 앞에만 씀] 현존[존재, 생존]하는, 기성의; 현행의, 지금의. [본문으로]
15. flavor ; 4. (물건·사람의) 특징, 특색 [본문으로]
16. note ; 6. MONEY | [C] (bank・note , 美 주로 bill) (또한 특히 英 모두 사용) 지폐 [본문으로]
17. reserve account ; (경제) 외화보유계정 [본문으로]
18. settlement account ; (은행) 결산계정(계좌) [본문으로]
19. commercial bank ; 시중[보통] 은행, 상업 은행 [본문으로]
20. interbank ; [형용사] 은행 간의 [본문으로]
21. similarly ; 1. 비슷하게, 유사하게 ;; 2. 마찬가지로 [본문으로]
22. in effect ; 1. 사실상[실제로는] ;; 2. 법이나 규정이 시행[발효] 중인 [본문으로]
23. trace ; [vn] 1. ~ sb/sth (to sth) 추적하다, (추적하여) 찾아내다 [본문으로]
24. transaction ; 2. 업무, 거래;[종종 pl.] ((특히)) 상거래, 매매 [본문으로]
25. bear[yield, draw] interest ; 이자가 붙다 [본문으로]
26. bank deposit ; 은행 예금, 예금 잔고 [본문으로]
27. government bonds ; 정부채, 국채 [본문으로]
28. weigh up ; (~의 사람됨을) 가늠하다 ;; [VERB] to make an assessment of (a person, situation, etc); judge ;; to think carefully about a situation before you decide what to do [본문으로]
29. monetary policy ; 통화[화폐] 정책 ;; 금융 정책, 재정 정책 [본문으로]
30. steep ; (steep・er , steep・est) 2. [주로 명사 앞에 씀] (양의 증감이) 급격한 [본문으로]
31. contemplate ; 1. (어떤 일의 가부나 방법에 대해) 고려하다[생각하다] [본문으로]
32. accelerate ; [자, 타동사] 가속화되다; 가속화하다 [본문으로]
33. advent ; 1. [sing.] the ~ of sth/sb 도래, 출현 [본문으로]
34. contactless ; 1.[ADJ] without contacts ;; 2.[ADJ] referring to payment systems which use RFID technology and do not require the customer's signature or pin number [본문으로]
35. interest-bearing ; [명사] 이자가 붙는, 이자부의 [본문으로]
36. in principle ; 1. 원칙적으로[이론상으로는], 원론적으로 ;; 2. 대체적으로 [본문으로]
37. put a floor under ; …에게 지지를 보내다; …을 안정시키다 [본문으로]
38. money market rate ; 시중금리 [본문으로]
39. depositor ; 1. 예금자, 예금주, 공탁자, 기탁자(opp⇨ depositary). [본문으로]
40. denomination ; 4. (화폐·도량형 따위의) 단위 명칭; (화폐·증권 따위의) 액면 금액. [본문으로]
41. banknote ; [명사] 은행권(bank bill); 은행 어음; 《英》 지폐. [본문으로]
42. abolish ; [타동사][VN] (법률・제도・조직을) 폐지하다 [본문으로]
43. institutional investor ; (경제) 기관 투자가 [본문으로]
44. putative ; 추정의, 추정되고 있는, 소문에 들리는 ;; 미국∙영국 [|pju:tətɪv] [본문으로]
45. warrant ; 1. …에 권한[권능]을 주다, …을 인가하다. ;; 2. …을 정당화하다, 옳다고 하다. ;; 3. …을 보증하다, 보(保)를 서다; 〔물품의 질·양〕을 보증하다, 〔보상(補償)〕을 보증하다. [본문으로]
46. cautious ; (more cautious; most cautious) 조심성 있는, 주의 깊은, 신중한. ;; 동의어 ; careful, prudent [본문으로]
47. in times of stress ; 비상시에, 일단(一旦) 유사시(有事時)를 당하여. ;; in times (of) ; …한 경우에는 [본문으로]
48. flee ; (flees[-z]; fled) 1. (위험·추격자 따위로부터) 달아나다, 벗어나다, 피난하다[from]. [본문으로]
49. wobbly ; 흔들흔들하는, 불안정한, 무정견(無定見)의; 줏대 없는 [본문으로]
50. e.g. ; [약어] 예를 들어(라틴어 exempli gratia를 줄인 것. for example로 읽음) [본문으로]
51. complication ; 1. [UC/] 복잡(화); (사건의) 분규(tangle) ;; 2. [흔히 pl.] 귀찮은 문제, 분규의 원인 ;; 3. [의학] 여병(餘病), 병발증, 합병증; [심리] 혼화(混化) [본문으로]
52. speculative ; 2. 투기적인, 투기 매매의 ;; 3. 위험한, 확실치 않은 [본문으로]
53. admonition ; [C , U] (또한 드물게 ad・mon・ish・ment / əd|mɑ:nɪʃmənt ; 美 -|mɑːn- /) (격식) 책망, 경고, ;; 훈계; 질책; 충고 [본문으로]
54. mint ; [타동사][VN] (화폐를) 주조하다 [본문으로]