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| ====== 4.2.2 Digital Account Model ====== | ====== 4.2.2 Digital Account Model ====== | ||
| - | [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:start| Return to Currency Models]] | + | |< 100% >| |
| + | | [[cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:start| Return to Currency Models]] | <WRAP> | ||
| + | <html><b> | ||
| + | <a href="mailto:[email protected]?Subject=OMG's CBDC WG Response: | ||
| + | 4.2.2 Digital Account Model | ||
| + | ">Provide Feedback</a></b> | ||
| + | </html> | ||
| + | </WRAP> | | ||
| ===== Overview ===== | ===== Overview ===== | ||
| - | [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:15_accounts:start| Return to Top]] | + | [[cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:15_accounts:start| Return to Top]] |
| Almost all Cryptocurrencies implemented so far use the concept of tokens, accounts, wallets, transactions, and distributed ledgers. In essence, these approaches use a model of the way money is handled in bank accounts(( | Almost all Cryptocurrencies implemented so far use the concept of tokens, accounts, wallets, transactions, and distributed ledgers. In essence, these approaches use a model of the way money is handled in bank accounts(( | ||
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| <figure> | <figure> | ||
| - | {{ cbdc:private:cbdc_omg:04_doc:40_currencies:hypecurve.png?600 |}} | + | {{ cbdc:04_doc:40_currencies:hypecurve.png?600 |}} |
| - | {{ cbdc:private:cbdc_omg:04_doc:40_currencies:hypecurve_detail.png?600 |}} | + | {{ cbdc:04_doc:40_currencies:hypecurve_detail.png?600 |}} |
| <caption>Gartner Group Hype Cycle </caption> | <caption>Gartner Group Hype Cycle </caption> | ||
| </figure> | </figure> | ||
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| ==== Digital Account Theoretical User Scenario ==== | ==== Digital Account Theoretical User Scenario ==== | ||
| - | [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:15_accounts:start| Return to Top]] | + | [[cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:15_accounts:start| Return to Top]] |
| - | : **Note:** The following Digital Account Theoretical User Scenario is only provided for discussion purposes. Actual User Scenarios would be developed during systems analysis and modeled using a Model-Based Systems Engineering (MBSE) approach and address the problem in far more detail with a team of experts. | + | : **Note:** The following Digital Account Theoretical User Scenario is only provided for discussion purposes. Actual User Scenarios would be developed during systems analysis and modeled using a Model-Based Systems Engineering (MBSE) approach and address the problem is far more detail with a team of experts. |
| In the following example, the CBDC is modeled as a Digital account, each account representing an End User. The End Users would actually “own” a wallet that contains account information where money is recorded as a balance that can be added to or subtracted from. For example, a retail purchase would deduct the amount of the purchase from the customer End User's account and add it to the Store's account. | In the following example, the CBDC is modeled as a Digital account, each account representing an End User. The End Users would actually “own” a wallet that contains account information where money is recorded as a balance that can be added to or subtracted from. For example, a retail purchase would deduct the amount of the purchase from the customer End User's account and add it to the Store's account. | ||
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| <figure transactionActFlow> | <figure transactionActFlow> | ||
| - | {{ cbdc:private:cbdc_omg:04_doc:40_currencies:screen_shot_2022-03-11_at_5.14.25_pm.png?950 |}} | + | {{ cbdc:04_doc:40_currencies:screen_shot_2022-03-11_at_5.14.25_pm.png?950 |}} |
| <caption>Simplified Digital Account Flow</caption> | <caption>Simplified Digital Account Flow</caption> | ||
| </figure> | </figure> | ||
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| ===== Examples ===== | ===== Examples ===== | ||
| - | [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:15_accounts:start| Return to Top]] | + | [[cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:15_accounts:start| Return to Top]] |
| - | There are three categories of "desirements" alluded to in the [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:private:cbdc_omg:15_summary:start&do=edit | White Paper]] and identified within the [[https://www.omg.org/ | Object Management Group ]] [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:private:cbdc_omg:15_summary:start | White Paper Analysis]]: | + | There are three categories of "desirements" alluded to in the [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:public:cbdc_omg:15_summary:start&do=edit | White Paper]] and identified within the [[https://www.omg.org/ | Object Management Group ]] [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:public:cbdc_omg:15_summary:start | White Paper Analysis]]: |
| * **Digital Cash Model** - these are "desirements" with CBDC characteristics most closely aligned with the simple coin cash model | * **Digital Cash Model** - these are "desirements" with CBDC characteristics most closely aligned with the simple coin cash model | ||
| - | * **Digital Account Model** - these are "desirements" with CBDC characteristics most closely aligned with the [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:15_accounts:start| Digital Account Model]] (i.e, savings, checking, investment, direct pay, credit, debit cards, etc. ) | + | * **Digital Account Model** - these are "desirements" with CBDC characteristics most closely aligned with the [[cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:15_accounts:start| Digital Account Model]] (i.e, savings, checking, investment, direct pay, credit, debit cards, etc. ) |
| - | * **Research Areas** - these are "desirements" with CBDC characteristics most closely aligned with "research" models such as [[cbdc:private:cbdc_omg:04_doc:15_common:30_stablecoins:start| Stablecoins]] | + | * **Research Areas** - these are "desirements" with CBDC characteristics most closely aligned with "research" models such as [[cbdc:public:cbdc_omg:04_doc:15_common:30_stablecoins:start| Stablecoins]] |
| - | In this discussion, only the "desirements" identified during the [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:private:cbdc_omg:15_summary:start | White Paper Analysis]] are considered. Table {{ref>AccountReqiurements}} represents the allocation of "desirements" germane to the Digital Account Model. | + | In this discussion, only the "desirements" identified during the [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:public:cbdc_omg:15_summary:start | White Paper Analysis]] are considered. Table {{ref>AccountReqiurements}} represents the allocation of "desirements" germane to the Digital Account Model. |
| <table AccountReqiurements> | <table AccountReqiurements> | ||
| - | <caption>Example of mapping a subset of "desirements" identified during the White Paper Analysis conducted by the OMG</caption> | + | <caption>Example of mapping a subset of "desirements" identified during the White Paper Analysis conducted by the OMG's CBDC WG</caption> |
| - | ^ Topic ^ Desirements ^ | + | ^ Topic ^ Desirements ^ |
| ^ Digital Account Model | <WRAP> | ^ Digital Account Model | <WRAP> | ||
| - | * B0005, B0010, B0022-4, B0038, B0047, B0048, B0049, B0051, B0054 | + | : B: B0005, B0010, B0022-4, B0038, B0047, B0048, B0049, B0051, B0054 |
| - | * P0002, P0012, P0013, P0017, P0018, P0019, P0020, P0021, P0023, P0024, P0025, P0017, P0028, P0030 | + | : P: P0002, P0012, P0013, P0017, P0018, P0019, P0020, P0021, P0023, P0024, P0025, P0017, P0028, P0030 |
| - | * R0002, R0009, R0012, R0015, R0020, R0023 | + | : R: R0002, R0009, R0012, R0015, R0020, R0023 |
| - | * D0001, D0002, D0003, D0005, D0008, D0010, D0012, D0013, | + | : D: D0001, D0002, D0003, D0005, D0008, D0010, D0012, D0013, |
| </WRAP>| | </WRAP>| | ||
| + | | **''B''** = [[cbdc:public:cbdc_omg:04_doc:12_summary:start#benefit_considerations| Benefit Considerations ]] ||| | ||
| + | | **''P''** = [[cbdc:public:cbdc_omg:04_doc:12_summary:start#policy_considerations| Policy Considerations]] ||| | ||
| + | | **''R''** = [[cbdc:public:cbdc_omg:04_doc:12_summary:start#risk_considerations| Risk Considerations ]] ||| | ||
| + | | **''D''** = [[cbdc:public:cbdc_omg:04_doc:12_summary:start#design_considerations | Design Considerations]] ||| | ||
| </table> | </table> | ||
| - | : **Note:** **''B''** = Benefit, **''P''** = Policy, **''R''** = Requirement, **''D''** = Design. | + | |
| ===== Discussion of Examples ===== | ===== Discussion of Examples ===== | ||
| - | [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:15_accounts:start| Return to Top]] | + | [[cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:15_accounts:start| Return to Top]] |
| - | Table {{ref>accountReqComments}} provides a summary of using a [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:10_cash:start| Digital Account Model]] instead of a Digital Cash or Stablecoin Models. Many of the OMG identified "desirements" found in the [[https://www.federalreserve.gov/publications/files/money-and-payments-20220120.pdf | Money, and Payments: The U.S. Dollar in the Age of Digital Transformation]] **White Paper** during the [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:private:cbdc_omg:15_summary:start | White Paper Analysis]] appear to be appropriate for a CBDC **"Account Model"**. The **"Account Model"** uses Digital Money in an analogous model as Accounts for CBDC. For example, the "desirements" **''B0005''**, which is a requirement to //"Protect against criminal activity| In this context, criminal activity is either Money Laundering or Fraud. Fraud is an intentionally deceptive action designed to provide the perpetrator with an unlawful gain or to deny a right to a victim. Types of fraud include tax fraud, credit card fraud, wire fraud, securities fraud, and bankruptcy fraud. Fraudulent activity can be carried out by one individual, multiple individuals, or a business firm as a whole"//, is easily associated with **Accounts**. | + | Table {{ref>accountReqComments}} provides a summary of using a [[cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:10_cash:start| Digital Account Model]] instead of a Digital Cash or Stablecoin Models. Many of the OMG identified "desirements" found in the [[https://www.federalreserve.gov/publications/files/money-and-payments-20220120.pdf | Money, and Payments: The U.S. Dollar in the Age of Digital Transformation]] **White Paper** during the [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:public:cbdc_omg:15_summary:start | White Paper Analysis]] appear to be appropriate for a CBDC **"Account Model"**. The **"Account Model"** uses Digital Money in an analogous model as Accounts for CBDC. For example, the "desirements" **''B0005''**, which is a requirement to //"Protect against criminal activity| In this context, criminal activity is either Money Laundering or Fraud. Fraud is an intentionally deceptive action designed to provide the perpetrator with an unlawful gain or to deny a right to a victim. Types of fraud include tax fraud, credit card fraud, wire fraud, securities fraud, and bankruptcy fraud. Fraudulent activity can be carried out by one individual, multiple individuals, or a business firm as a whole"//, is easily associated with **Accounts**. |
| <table accountReqComments> | <table accountReqComments> | ||
| + | |||
| <caption>List of "desirements" (i.e., desirements) identified in the **White Paper** indicating a **Account Model**.</caption> | <caption>List of "desirements" (i.e., desirements) identified in the **White Paper** indicating a **Account Model**.</caption> | ||
| + | |< 100% 10% 25% ->| | ||
| ^ Requirement ^ Statement ^ Comment ^ | ^ Requirement ^ Statement ^ Comment ^ | ||
| ^ B0005 ^ Protect against criminal activity| In this context, criminal activity is either Money Laundering or Fraud. Fraud is an intentionally deceptive action designed to provide the perpetrator with an unlawful gain or to deny a right to a victim. Types of fraud include tax fraud, credit card fraud, wire fraud, securities fraud, and bankruptcy fraud. Fraudulent activity can be carried out by one individual, multiple individuals, or a business firm as a whole. | | ^ B0005 ^ Protect against criminal activity| In this context, criminal activity is either Money Laundering or Fraud. Fraud is an intentionally deceptive action designed to provide the perpetrator with an unlawful gain or to deny a right to a victim. Types of fraud include tax fraud, credit card fraud, wire fraud, securities fraud, and bankruptcy fraud. Fraudulent activity can be carried out by one individual, multiple individuals, or a business firm as a whole. | | ||
| ^ B0010 ^ Expand consumer access to the financial system | A financial system is the entire set of non-cash-based institutions (i.e., banks, thrifts, insurance companies, stock exchanges, etc.) permitting and facilitating the exchange of funds. The expansion would entail adding people to these institutions | | ^ B0010 ^ Expand consumer access to the financial system | A financial system is the entire set of non-cash-based institutions (i.e., banks, thrifts, insurance companies, stock exchanges, etc.) permitting and facilitating the exchange of funds. The expansion would entail adding people to these institutions | | ||
| ^ B0022 ^ Provide a CBDC that is:<WRAP> | ^ B0022 ^ Provide a CBDC that is:<WRAP> | ||
| - | - NOT [[cbdc:private:cbdc_omg:8_append:20_glossary:privacy-protected| Privacy-Protected ]] | + | : 1. NOT [[cbdc:public:cbdc_omg:8_append:20_glossary:privacy-protected| Privacy-Protected ]] |
| - | - [[cbdc:private:cbdc_omg:8_append:20_glossary:intermediated| Intermediated]] | + | : 2. [[cbdc:public:cbdc_omg:8_append:20_glossary:intermediated| Intermediated]] |
| - | - NOT [[cbdc:private:cbdc_omg:8_append:20_glossary:transferable| Widely Transferable]] | + | : 3. NOT [[cbdc:public:cbdc_omg:8_append:20_glossary:transferable| Widely Transferable]] |
| - | - [[cbdc:private:cbdc_omg:8_append:20_glossary:identity-verified| Identity-Verified]] | + | : 4. [[cbdc:public:cbdc_omg:8_append:20_glossary:identity-verified| Identity-Verified]] |
| </WRAP> | //Intermediated// generally implies accounts or digital wallets. //Identity-Verified// generally implies validating and verifying a person's identity to gain access to their accounts | | </WRAP> | //Intermediated// generally implies accounts or digital wallets. //Identity-Verified// generally implies validating and verifying a person's identity to gain access to their accounts | | ||
| ^ B0038 ^ Allow private-sector innovators to focus on: <WRAP> | ^ B0038 ^ Allow private-sector innovators to focus on: <WRAP> | ||
| - | - new access services | + | : 1. new access services |
| - | - distribution methods | + | : 2. distribution methods |
| - | - related service offerings | + | : 3. related service offerings |
| </WRAP>| These innovations would predominately be account-based. | | </WRAP>| These innovations would predominately be account-based. | | ||
| ^ B0047 ^ Lower transaction costs | Normally, there are no transaction costs for using cash | | ^ B0047 ^ Lower transaction costs | Normally, there are no transaction costs for using cash | | ||
| Line 153: | Line 166: | ||
| ^ B0051 ^ Generate data about users’ financial transactions similar to the current Commercial Bank(( | ^ B0051 ^ Generate data about users’ financial transactions similar to the current Commercial Bank(( | ||
| Commercial banks include banks licensed either by federal or state banking agencies, credit unions, and thrifts from the **White Paper**. | Commercial banks include banks licensed either by federal or state banking agencies, credit unions, and thrifts from the **White Paper**. | ||
| - | )) and [[cbdc:private:cbdc_omg:8_append:20_glossary:nonbank_money]] | This kind of data is collected on the activity in accounts. | | + | )) and [[cbdc:public:cbdc_omg:8_append:20_glossary:nonbank_money]] | This kind of data is collected on the activity in accounts. | |
| - | ^ B0054 ^ Attract risk-averse users to CBDC | Risk Adverse investments usually pay little to no incentive to investors, but its value remains constant. Cash represents that kind of investment | | + | ^ B0054 ^ Attract risk-averse users to CBDC | Risk Adverse investments usually pay little to no incentive to investors, but their value remains constant. Cash represents that kind of investment | |
| ^ P0002 ^ Provide Yield benefits more effectively than alternative methods | Cash generally offers no yield, therefore, this would require accounts | | ^ P0002 ^ Provide Yield benefits more effectively than alternative methods | Cash generally offers no yield, therefore, this would require accounts | | ||
| ^ P0005 ^ Protect against criminal activity | See: **''B0005''** | | ^ P0005 ^ Protect against criminal activity | See: **''B0005''** | | ||
| ^ P0012 ^ The firms that operate interbank payment services are subject to federal supervision | These services typically use accounts to move payments unless it is referring to armored guards and vehicles | | ^ P0012 ^ The firms that operate interbank payment services are subject to federal supervision | These services typically use accounts to move payments unless it is referring to armored guards and vehicles | | ||
| ^ P0013 ^ Systemically important payment firms are subject to <WRAP> | ^ P0013 ^ Systemically important payment firms are subject to <WRAP> | ||
| - | - heightened supervision | + | : 1. heightened supervision |
| - | - regulation | + | : 2. regulation |
| </WRAP>| Refers to the accounting practices used by the payment firms | | </WRAP>| Refers to the accounting practices used by the payment firms | | ||
| ^ P0017 ^ The PWG report recommends CBDC complement existing authorities regarding: <WRAP> | ^ P0017 ^ The PWG report recommends CBDC complement existing authorities regarding: <WRAP> | ||
| - | - market integrity | + | : 1. market integrity |
| - | - investor protection | + | : 2. investor protection |
| - | - illicit finance | + | : 3. illicit finance |
| </WRAP>| Refers to the accounting practices for CBDC accounts | | </WRAP>| Refers to the accounting practices for CBDC accounts | | ||
| ^ P0018 ^ The Federal Reserve Act does not authorize direct Federal Reserve accounts for individuals | Refers to accounts | | ^ P0018 ^ The Federal Reserve Act does not authorize direct Federal Reserve accounts for individuals | Refers to accounts | | ||
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| ^ P0027 ^ CBDC a risk-free asset | See: **''B0054''** | | ^ P0027 ^ CBDC a risk-free asset | See: **''B0054''** | | ||
| ^ P0028 ^ Require significant international coordination to address issues such as:<WRAP> | ^ P0028 ^ Require significant international coordination to address issues such as:<WRAP> | ||
| - | - common standards | + | : 1. common standards |
| - | - infrastructure, | + | : 2. infrastructure, |
| - | - the types of intermediaries able to access any new infrastructure, | + | : 3. the types of intermediaries able to access any new infrastructure, |
| - | - legal frameworks | + | : 4. legal frameworks |
| - | - preventing illicit transactions | + | : 5. preventing illicit transactions |
| - | - the cost and timing of implementation | + | : 6. the cost and timing of implementation |
| </WRAP>| | | </WRAP>| | | ||
| ^ P0030 ^ The Federal Reserve will only take further steps toward developing a CBDC if: <WRAP> | ^ P0030 ^ The Federal Reserve will only take further steps toward developing a CBDC if: <WRAP> | ||
| - | - Research points to benefits for households, businesses, and the economy overall that exceed the downside risks | + | : 1. Research points to benefits for households, businesses, and the economy overall that exceed the downside risks |
| - | - Indicates that CBDC is superior to alternative methods | + | : 2. Indicates that CBDC is superior to alternative methods |
| </WRAP>| See: **''B0054''** | | </WRAP>| See: **''B0054''** | | ||
| ^ R0002 ^ **Risk** to the cost and availability of credit | See: **''B0054''** | | ^ R0002 ^ **Risk** to the cost and availability of credit | See: **''B0054''** | | ||
| ^ R0009 ^ Increased **Risk** of "runs" or other instabilities to the financial system | | | ^ R0009 ^ Increased **Risk** of "runs" or other instabilities to the financial system | | | ||
| ^ R0012 ^ **Risk** of increased concern related to the potential for: <WRAP> | ^ R0012 ^ **Risk** of increased concern related to the potential for: <WRAP> | ||
| - | - destabilizing "runs" | + | : 1. destabilizing "runs" |
| - | - disruptions in the payment system | + | : 2. disruptions in the payment system |
| - | - concentration of economic power | + | : 3. concentration of economic power |
| </WRAP>| See: **''B0054''** | | </WRAP>| See: **''B0054''** | | ||
| ^ R0013 ^ CBDC offers no associated credit or liquidity **Risk** | See: **''B0054''** | | ^ R0013 ^ CBDC offers no associated credit or liquidity **Risk** | See: **''B0054''** | | ||
| Line 208: | Line 221: | ||
| ^ D0012 ^ **Design** should address privacy concerns by leveraging existing tools already in use by intermediaries | These restrictions imply accounts | | ^ D0012 ^ **Design** should address privacy concerns by leveraging existing tools already in use by intermediaries | These restrictions imply accounts | | ||
| ^ D0013 ^ **Design** should facilitate compliance with a robust set of rules already intended to combat <WRAP> | ^ D0013 ^ **Design** should facilitate compliance with a robust set of rules already intended to combat <WRAP> | ||
| - | - money laundering | + | : 1. money laundering |
| - | - the financing of terrorism | + | : 2. the financing of terrorism |
| - | - customer due diligence | + | : 3. customer due diligence |
| - | - record-keeping | + | : 4. record-keeping |
| - | - reporting requirements | + | : 5. reporting requirements |
| </WRAP>| These restrictions imply accounts | | </WRAP>| These restrictions imply accounts | | ||
| </table> | </table> | ||
| - | ===== Recommendations ===== | ||
| - | [[cbdc:private:cbdc_omg:04_doc:20_comments:brp:q02:start| Return to Top]] | ||
| - | |||
| - | The [[https://www.omg.org/ | Object Management Group (OMG)]] is an unbiased, non-partisan, [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.a_glossary:s:sdo | Standards Developing Organization (SDO)]] and makes no recommendation at this time as to which [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:start | Currency Model]] to use: | ||
| - | * [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:10_cash:start | 4.2.1 Digital Cash Model]] - Tokens | ||
| - | * [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:15_accounts:start | 4.2.2 Digital Account Model]] - Accounts | ||
| /**=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=- | /**=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=- | ||
cbdc/public/cbdc_omg/04_doc/15_common/08_currency_models/15_accounts/start.1651868232.txt.gz · Last modified: 2022/05/06 16:17 by terrance
