OMFIF: "CBDCs present new opportunities for handling disputes and fraud" by DCI Team Members

Potential designs may involve intermediaries in new and different ways

Central bank digital currencies potentially offer, in a digital form, the advantages of central bank money: settlement finality, liquidity and integrity. However, both offline and online commerce are susceptible to fraud and other kinds of disagreements. The existing techniques for managing fraud and disputes focus on giving users easy access to chargebacks, which relies on intermediaries to resolve disputes. Potential designs for CBDC may involve intermediaries in new and different ways, or may not use intermediaries at all, calling into question how to address fraud if CBDCs become widely used.

by Neha Narula, Tadge Dryja, Muhammad Saad, Adam Oest and Sarah Xu  14 October 2022