CBDC Digital Franken - benefits and risks in the perspective of interview partner

Topic
This dedicated research aims to explore the necessity of issuing Digital Franken or Central Bank Digital Currency (CBDC) in a digital transaction-dominated environment where cash usage is diminishing. The author focuses on establishing the current state of Digital Franken development and seeks valuable insights on the benefits and risks of issuing CBDC through interviews. It is important to note that there is currently no concrete evidence suggesting that Switzerland will pursue this path. Nonetheless, this research sheds light on the potential need for a digital currency in Switzerland's evolving financial landscape.

Relevance
In this paper, the focus is on exploring whether Switzerland's fiat money can transition into a digital form. The aim is to identify the available frameworks for this transition. The practical relevance of this research question lies in the potential benefits of Central Bank Digital Currency (CBDC). CBDC can offer a more efficient and secure way for individuals and businesses to transact and store value. It also presents a new avenue for central banks to implement monetary policy. The impacts of CBDC on businesses and the economy can include reduced transaction costs, faster cross-border transactions, and enhanced efficiency. However, CBDC is a complex topic that requires further examination by policymakers, central banks, and experts. The outcome of CBDC will depend on the specific design, implementation, and the broader economic and political landscape in which it is introduced.

Results
The issuance of Central Bank Digital Currency (CBDC) can have both positive and negative impacts. Research conducted on the subject has provided valuable insights, considering scientific concepts and qualitative desires from interview partners. However, it's important to acknowledge the limitations of the research, such as sample size constraints, potential bias, and incomplete perspectives. Despite these limitations, the research has laid a foundation for understanding CBDC implications. Future improvements are needed, including larger and more diverse studies to validate and expand the findings. Exploring additional dimensions like socio-economic impact and technological challenges will enhance our understanding of this emerging field.

Implications for practitioners
1. Faster, more efficient, and cheaper transactions, reducing the need for intermediaries and settlement times.

2. Bypass traditional financial intermediaries like commercial banks, allowing users to hold accounts directly with the central bank.

3. Providing individuals who are unbanked or underbanked with access to basic financial services.

4. Direct control over monetary policy by enabling real-time monitoring of transactions and direct transmission of monetary stimulus.

5. Regulatory adjustments to ensure financial stability, consumer protection, and anti-money laundering measures.

6. New opportunities for innovative business models and services.

Methods
In this paper, a robust research methodology was employed to delve into the topic of Central Bank Digital Currency (CBDC). The approach consisted of a comprehensive literature review, which served as a foundation for understanding the existing knowledge and perspectives on CBDC. Additionally, qualitative interviews were conducted to gather valuable insights and feedback directly from experts and individuals with relevant expertise. This combination of literature research and qualitative interviews ensured a comprehensive and well-rounded exploration of the CBDC topic, allowing for a deeper understanding and analysis of its implications.