By: Evoryo Carel Prabhata, S.H.
Hello Selaras Friends!
White papers are essential in corporate strategy and policy. With growing interest in digital currency, several countries are interested in using digital currencies as a complementary use of existing currency. Digital currency is a new technology that is in a development stage, therefore it needs further understanding to adopt it. White papers can take the role to simplify it!
What Exactly is a White Paper?
A white paper is a persuasive document, typically used in the corporate world or government, that outlines the problems and solutions of a particular complex subject or technology. It is intended to inform and educate the reader about a specific issue and to convince them of the viability of a particular solution. White papers are often used in product launches, policy proposals, and other initiatives to explain the technical and business benefits of a particular product or idea.
What is CBDC?
Central Bank Digital Currency (CBDC) refers to a digital version of a country’s currency issued and backed by its central bank. CBDCs aim to provide the general public with a secure and convenient way to store and transfer value, while also offering central banks a way to modernize their monetary systems and better control the money supply. CBDCs are designed to complement physical cash, not replace it.
CBDCs differ from cryptocurrencies in that they are issued and backed by a central authority, rather than being decentralized like Bitcoin and other cryptocurrencies. They also generally have enhanced security features, such as cryptographic protection, to prevent counterfeiting and fraud.
There is growing interest in CBDCs around the world, with many central banks exploring the concept and conducting pilot projects to better understand the potential benefits and challenges. However, there are also concerns around privacy and the impact on the banking system. The development and adoption of CBDCs is an evolving and complex topic, and it remains to be seen how they will be used and integrated into the global monetary system.
CBDC and the White Paper
White papers and Central Bank Digital Currencies (CBDCs) are related in that white papers are often used to explain and promote the development and implementation of CBDCs. In this context, a white paper on CBDCs might describe the technical and business rationale for issuing a digital currency, the design features and benefits of the proposed system, and the regulatory and security considerations. The white paper might also outline the central bank’s vision for how the CBDC would operate and be adopted by the public.
In general, white papers serve as an informational and persuasive tool to help organizations promote their ideas and initiatives. In the case of CBDCs, white papers can be used to educate the public and stakeholders on the subject, to demonstrate the central bank’s commitment to the project, and to build support and interest in the CBDC.
White papers can serve several benefits in the context of Central Bank Digital Currencies (CBDCs):
- Education: White papers can provide in-depth information about the technical and operational aspects of CBDCs, making it easier for the public and stakeholders to understand the concept and its benefits.
- Credibility: White papers are often produced by experts in the field, which helps to establish the credibility and legitimacy of the proposed CBDC.
- Clarity: By outlining the design features, benefits, and challenges of a CBDC, white papers can help to clarify the central bank’s vision and approach, and ensure that all stakeholders are on the same page.
- Persuasion: White papers are often used to convince stakeholders of the viability of a particular solution or project. In the context of CBDCs, white papers can help to build support and interest in the CBDC, and to secure the necessary resources for its development and implementation.
- Reference: White papers can serve as a reference for future discussions and debates about CBDCs, and provide a clear and comprehensive overview of the project.
Overall, white papers can play a key role in advancing the development and implementation of CBDCs by providing a clear and persuasive case for the project, and helping to build consensus and support among stakeholders.
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Bank for International Settlements Committee on Payments and Market Infrastructures. (2017). Distributed ledger technology in payment, clearing and settlement: An analytical framework. Online: https://www.bis.org/cpmi/publ/d174.pdf
Fishkin, J. S., Kogod, J. M., & Adler, E. S. (2015). Definitions of white papers, briefing books, and memos. Stanford Law School, Legal Design Lab. Online: http://law.stanford.edu/wp-content/uploads/2015/04/Definitions-of-White-Papers-Briefing-Books-Memos-2.pdf
Doxat, V. The white stuff: why white papers are good for business. Online: https://ams3.digitaloceanspaces.com/junctionsix-101/victoriadoxat-admin-v2/the-white-stuff-why-white-papers-are-good-for-business.pdf
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Editor: Bambang Sukoco, S.H.