Should the amount of CBDC held by a single end-user be subject to quantity limits?
The answer depends on the architecture, design and implementation. (See: 4.0 Common Elements).
Before an answer can be provided about CBDC quantity limits for end-users, it is essential to clearly state the purpose and goals of the CBDC. The answer to Question: 15. Should a CBDC pay interest? If so, why and how? If not, why not? Sets the stage for this question, too. Basically, it depends on which model is used for the CBDC:
There is only one requirement in the White Paper as identified by the identified by the Object Management Group's CBDC WG report called White Paper Analysis:
Statement No. | Page No. | Statement |
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D0003 | 18 | Design should allow a limit on the amount of CBDC an end user could accumulate over short periods |
The Digital Cash Model
Requirement | Statement | Comment |
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D0003 | Design should allow a limit on the amount of CBDC an end user could accumulate over short periods | Digital Cash should be considered similarly as physical cash. It is impractical to have large amounts of physical cash. For security and safety, rarely does an End User hoard large amounts of physical cash. Using large amounts of cash to make purchases require time to count and validate the cash, and the same limits should be the same for Digital Cash. |
B = Benefit Considerations |
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P = Policy Considerations |
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R = Risk Considerations |
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D = Design Considerations |
Requirement | Statement | Comment |
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D0003 | Design should allow a limit on the amount of CBDC an end user could accumulate over short periods | Digital Accounts should be considered similar to current intermediary accounts (i.e., checking, savings, certificate of deposit, money market, etc.) held by End Users. |
B = Benefit Considerations |
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P = Policy Considerations |
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R = Risk Considerations |
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D = Design Considerations |