The Ockham’s Razor: How to Implement CBDC Simply: The Idea of a Digital Currency Bank

Abstract Central banks that intend to implement Central Bank Digital Currency (CBDC) must decide whether to leverage blockchain as their technology or introduce digital currency on their own terms. We argue that the first option is not a good idea, as it implies the application of a very complicated, non-intuitive, and expensive solution, which cannot meet some central banks’ expectations. Instead, we propose a special entity – a Digital Currency Bank (DCB) – as a method to implement CBDC. The DCB would use traditional information technology successfully employed by banks for years, instead of the intricate blockchain technology used to implement cryptocurrencies.