The era of digital currencies has arrived.
Today, payments infrastructure faces numerous challenges:
- Central banks in G7 countries spend over $50 billion per year on clearing and settling securities.
- Cross border payments continue to rely on correspondent banking systems that were built a century ago. They are slow, costly, and lack transparency.
- The use of physical cash is declining significantly and new means of payments—like Libra and the Chinese digital Yuan— are emerging.
- And 1.7 billion adults across the globe remain underbanked.
Codefi Payments presents a solution. We help central banks, financial institutions, and corporations to improve wholesale, retail, and cross-border payments with new payment infrastructure, built on Ethereum. Our digital currency settlement solution is the product of six years of technology development, and is informed by our work with six central bank digital currency (CBDC) pilots.
Reinvent national currency, retail transactions, global transfers, and cross-border remittances with CBDCs and stablecoins built with Codefi Payments.
Wholesale Digital Currency
Build payments infrastructure that supports digital assets
Create infrastructure on which multiple stakeholders can develop and deploy services. Remove dependencies between legacy IT systems and foster innovation, unlocking new services and business models.
Configure business logic (e.g. Delivery vs Payment, Payment vs Payment) within the money asset itself to drastically reduce the need for processing and reconciliation.
Activate real-time settlement without counterparty risks.
Connect with existing payments layers and solutions.
Embrace digital money for an increasingly digital economy
Increase financial access by creating a universal means of payment that can be used by the 1.7B underbanked people around the globe.
Promote peer-to-peer transactions to reduce costs, frictions, and reliance on intermediaries.
Configure interest rates, payment and holding thresholds and other retail payment logic into the money asset itself to drastically reduce processing and reconciliation requirements.
No more vendor lock in. Change wallet providers as easily as you change telecom operators while keeping the same phone number.
Make cross border payments faster, cheaper, more transparent, and more inclusive
By 2027, cross-border payments are expected to exceed $250 trillion, up from $150 trillion in 2017. The legacy banking system will fail to support these volumes, thus revamping payment infrastructure has become a top priority for the G20.
Send money around the world as easily as you send an email.
Make payments easy and social by incorporating stablecoins into digital applications and building strong networks.
Build with Codefi Payments
The Codefi Payments Sandbox
Issuing digital currencies is not a simple task. Central Banks, banks, and payment service providers often require more understanding of available technology; they need to ensure their resources will be put to valuable use; and they need to design future-proof systems that will be widely adopted by stakeholders.
Codefi Payments has deployed a CBDC Ecosystem-as-a-Service, a permissioned network or test environment offering the functionalities of a CBDC platform—including Zero Knowledge Proofs for privacy and rollups for scalability (up to 10,000 TPS). Our goal is to deliver the following opportunities for central banks and payment service providers.
Examine the features and process flows of a CBDC platform
Design a CBDC and test wholesale, retail, and cross-border applications. Evaluate technology trade-offs such as privacy vs scalability. Examine interoperability capabilities.
Determine how the technology can better serve institutional requirements
Enable collaboration between public and private sector stakeholders. Ensure all stakeholders’ requirements are properly addressed. Leverage the knowledge of the community.
Explore different stakeholders’ roles within the CBDC ecosystem
The sandbox will comprise an ecosystem of technology partners. Private companies can integrate existing products and services, and build new ones to suit their business models.
Leverage ConsenSys’ thought leadership on the future of money
ConsenSys is uniquely positioned between public blockchain innovation and the enterprise blockchain ecosystem. We seek to bridge the two worlds with enhanced financial infrastructure.
Develop internal capabilities for distributed ledger technology
Run nodes, stress test the network’s security and reliability, and learn the intricacies of the technology.
Simplify the creation of a secure payments system that bridges traditional and emerging financial markets.
For Central Banks
Manage administration of your CBDC platform
Issue and redeem CBDCs
Distribute CBDCs to regulated institutions (eg. commercial banks, payment service providers)
Monitor issued CBDCs to ensure alignment with reserves
Monitor network activity
Ensure continuous AML-CFT compliance
For Commercial Banks and Payment Service Providers
Use CBDCs for wholesale transactions
Distribute CBDCs to the general public
Onboard retail users with identity (KYC) verification
Operate regulated wallets
Configure CBDC business logic
For Retail Users
Create a CBDC wallet
Send and receive CBDCs
Make payments in stablecoin or cryptocurrency
RESOURCES AND INSIGHTS
Learn more about CBDCs
Central Banks and the Future of Digital Money
An overview of the history and current state of CBDC as well as an example of how a CBDC could be designed and built on the Ethereum blockchain.
Blockchain Solutions for CBDCsCentral Bank Digital Currency (CBDC) is a digital form of central bank money that offers central banks unique advantages at the retail and wholesale levels, including increased financial access for individual customers and a more efficient infrastructure for interbank settlements.
Which Governments are Researching CBDCs Right Now?A comprehensive list of CBDC experiments planned, in progress, or paused globally.
20 Key Questions from Central Banks AnsweredA CBDC FAQ addressing questions around payments, monetary and financial stability, CBDC functionalities, technology, infrastructure, and further innovations for Central Banks.
A Guide to CBDCs for Central BanksINSIGHT REPORT | A CBDC FAQ addressing questions around payments, monetary and financial stability, CBDC functionalities, technology, infrastructure, and further innovations for Central Banks.
What do ConsenSys’ Recent CBDC Pilots Reveal about How Central Banks are Approaching Digital Currencies on Ethereum?Wholesale vs. Retail? Delivery vs. Payment? We explore the design expectations and technical approaches of four recent ConsenSys CBDC pilots.
We Ask the Former Director General of the European Central Bank What's Next for CBDCsJean Michel Godeffroy, a monetary policy expert with sixteen years experience as director general at the European Central Bank, shares his insights on CBDCs