Leading the way in innovation for over 55 years, we build greater futures for businesses across multiple industries and 55 countries.
Our expert, committed team put our shared beliefs into action – every day. Together, we combine innovation and collective knowledge to create the extraordinary.
We share news, insights, analysis and research – tailored to your unique interests – to help you deepen your knowledge and impact.
At TCS, we believe exceptional work begins with hiring, celebrating and nurturing the best people — from all walks of life.
Get access to a catalog of the latest news stories from across TCS. Discover our press releases, reports, and company announcements.
Banking / WHITE PAPER
Himadri Sikhar Pramanik
Lead, Research, TCS
Chandershekher Joshi
Innovation Evangelist, Digital, TCS
You have these already downloaded
We have sent you a copy of the report to your email again.
Central Bank Digital Currency (CBDC) is the digital form of a country’s currency. Increasing interest in digital currencies and technological advances have resulted in central banks experimenting with CBDC in partnership with commercial banks. Several CBDC pilot projects have been initiated across the globe and are delivering benefits. Typically, three CBDC models are being implemented – wholesale CBDC, retail CBDC, and cross-currency CBDC. Wholesale CBDC is the most common and involves the central bank and commercial banks. Retail CBDC is being implemented in a two-tier model while cross-currency CBDC projects aim to make inter-bank cross-border transactions faster and seamless.
However, CBDC implementation impacts financial systems in several ways. To prepare for the evolution of the digital currency, commercial banks must:
Participate in CBDC policy formulation
Realign technology adoption with CBDC platforms
Design new offerings and reshape the customer experience
Integrated Risk Appetite and Financial Crime Risk Controls Assessment
Fast-tracking mortgage originations through an ecosystem model
Climate data collection framework for effective risk management
GenAI for disruptive transformation in banking