The dollar remains the dominant currency in the international system (%) F I GUR E 8 0 10% 20% 30% 40% 50% 60% 70% Share of foreign currency debt issuance* Foreign exchange reserves** Share of OTC foreign exchange transactions*** Global payments currency**** US dollar Euro Renminbi Yen 3.5 Infrastructure cost considerations Countries around the world are pursuing CBDC research and development with the intention to reap the benefits of CBDCs, especially time and cost reductions of payments. As already seen in the R&D stages, there are high costs associated with researching and piloting this innovation. Should countries choose to move forward with implementing a CBDC, there will be high costs associated with executing and maintaining this system. Depending on its design, a CBDC would most likely entail considerable fixed costs associated with the construction of an adequate infrastructure. In addition, there are costs associated with identifying talented labour, software, cybersecurity and support costs associated with the operation of a CBDC. Staff will need to be trained and then paid to operate the system. Licences and service fees will be paid to external providers. Finally, a substantial public education and support programme will be necessary for the successful launching and operation of the digital currency as well as a marketing effort that will be used to encourage adoption.65 The cost of CBDC comprises the costs to businesses accepting CBDC, any potential fees charged to consumers and the costs paid by payment service providers to the central bank for using the CBDC infrastructure. If a CBDC is issued in a jurisdiction, there will need to be deliberation of how these costs will be covered, whether it is through intermediaries or not, and in the case of cross-border payments this will need to also be considered internationally. *Data for 2021 **Data for Q2 2022 ***Data for April 2022 ****Data for April 2023 Source: Deutsche Bank; Board of Governors of the Federal Reserve System; SWIFT; International Monetary Fund (IMF); BIS Central Bank Digital Currency Global Interoperability Principles 25
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