Central Bank Digital Currencies and Inflation Risks Training Course

Introduction

The Central Bank Digital Currencies and Inflation Risks Training Course is designed to equip participants with deep insights into the complex relationship between emerging central bank digital currencies (CBDCs) and inflationary dynamics in modern economies. As more central banks experiment with or adopt digital currencies, questions arise about their implications for money supply, monetary policy transmission, and inflation risks. This course addresses these critical issues, helping participants understand the opportunities and challenges of CBDCs in shaping price stability.

With inflation at the forefront of global economic concerns, understanding how CBDCs interact with monetary frameworks has never been more important. This program combines theory, case studies, and policy applications to examine how digital currencies influence inflation expectations, velocity of money, financial stability, and macroeconomic management. By integrating economic theory with real-world central banking innovations, the training provides a holistic understanding of CBDCs and their potential to reshape monetary systems.

Duration: 10 Days

Target Audience:

  • Central bank policymakers and regulators
  • Government officials in finance and economic planning
  • Economists and monetary policy experts
  • Financial market analysts and researchers
  • Banking and fintech professionals
  • Academic scholars in economics and digital finance

Objectives:

  1. Understand the design and purpose of CBDCs
  2. Analyze the link between CBDCs and inflation dynamics
  3. Explore the impact of CBDCs on monetary policy transmission
  4. Assess risks of inflationary or deflationary pressures from CBDCs
  5. Examine case studies of CBDC adoption globally
  6. Evaluate CBDCs’ impact on financial intermediation and stability
  7. Study how CBDCs affect money supply and velocity
  8. Assess CBDCs’ role in inflation expectations and public trust
  9. Explore regulatory and governance frameworks for CBDCs
  10. Develop strategies for managing inflation risks in the CBDC era

Course Modules:

Module 1: Introduction to Central Bank Digital Currencies

  • Defining CBDCs and their key characteristics
  • CBDCs vs. cryptocurrencies and stablecoins
  • Motivations for CBDC adoption
  • Global trends in digital currency issuance
  • Policy and economic implications

Module 2: The Monetary Policy Context of CBDCs

  • Traditional monetary policy frameworks
  • CBDCs as tools in monetary operations
  • Implications for policy transmission channels
  • Interest rate dynamics in a digital currency system
  • Challenges for central bankers

Module 3: CBDCs and Inflation Mechanisms

  • Impact on money supply growth
  • Velocity of money in digital economies
  • Short-term vs. long-term inflation effects
  • Role in inflationary or deflationary pressures
  • Cross-country variations

Module 4: Case Studies in CBDC Development

  • Lessons from China’s digital yuan
  • European Central Bank’s digital euro plans
  • Bahamas’ Sand Dollar
  • Emerging market CBDC pilots
  • Comparative global approaches

Module 5: CBDCs and Financial Stability

  • Risks of disintermediation of banks
  • Effects on credit creation and lending
  • Crisis management and liquidity provision
  • Digital runs and systemic risk
  • Safeguards for financial institutions

Module 6: CBDCs and Public Inflation Expectations

  • Influence on household trust in currency
  • Communication strategies by central banks
  • Behavioral shifts in money holding
  • Public perceptions of inflation risk
  • Transparency in CBDC policy

Module 7: CBDCs and Exchange Rates

  • International monetary spillovers
  • Impact on capital flows
  • Exchange rate volatility and inflation pass-through
  • CBDCs in global trade settlements
  • Risks of currency substitution

Module 8: Design Choices and Inflation Implications

  • Retail vs. wholesale CBDCs
  • Interest-bearing vs. non-interest-bearing models
  • Limits on CBDC holdings
  • Privacy and traceability trade-offs
  • Influence on inflationary pressures

Module 9: CBDCs and Financial Market Dynamics

  • Government bonds and interest rate implications
  • Effects on money markets
  • Digital currency’s impact on investment flows
  • Inflation expectations in financial markets
  • Shifts in market liquidity

Module 10: CBDCs and Fiscal-Monetary Interactions

  • Use of CBDCs in fiscal transfers
  • Direct government-to-citizen payments
  • Seigniorage revenues and inflation
  • Implications for fiscal discipline
  • CBDCs in emergency stimulus measures

Module 11: CBDCs and Inflation Targeting Frameworks

  • Adapting inflation targeting to digital systems
  • New tools for monetary control
  • Challenges of anchoring inflation expectations
  • Role of AI and data analytics in policy adjustment
  • Ensuring credibility in a CBDC environment

Module 12: Risks of Inflation Volatility in CBDC Systems

  • Sudden shifts in money demand
  • Cybersecurity and inflation shocks
  • Cross-border contagion risks
  • Over-issuance and price instability
  • Policy measures to mitigate risks

Module 13: CBDCs, Cryptocurrencies, and Inflation Hedging

  • Interactions between CBDCs and crypto assets
  • Private digital currencies as inflation hedges
  • Competition and coexistence risks
  • Impact on monetary sovereignty
  • Regulatory implications

Module 14: Legal and Governance Challenges of CBDCs

  • Legal tender status and obligations
  • Governance frameworks for digital issuance
  • International coordination and cooperation
  • Data privacy and consumer protection
  • Implications for inflation credibility

Module 15: The Future of CBDCs and Inflation Risks

  • Long-term evolution of monetary systems
  • Integration of CBDCs with digital finance ecosystems
  • CBDCs and the future of inflation control
  • Role of global institutions in shaping frameworks
  • Strategic outlook for policymakers

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport Pick Up is provided by the institute. Accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

For More Details call: +254-114-087-180

 

Central Bank Digital Currencies And Inflation Risks Training Course in Bulgaria
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