The emergence of digital currencies, from decentralized cryptocurrencies to privately issued stablecoins and nascent central bank digital currencies (CBDCs), presents both a profound opportunity and a significant challenge to the foundations of the global financial system. These new forms of money have the potential to revolutionize payments, enhance financial inclusion, and improve monetary policy transmission. However, they also raise complex questions about their impact on inflation dynamics and the ability of central banks to maintain price stability. Understanding these implications is crucial for policymakers, regulators, and market participants alike.

This program provides a comprehensive and practical deep dive into the intersection of digital money and macroeconomic policy. Participants will gain a fundamental understanding of how different types of digital currencies could affect the demand for central bank money, the effectiveness of monetary policy tools, and the stability of the banking system. The course will address everything from the theoretical implications of a non-interest-bearing CBDC to the practical challenges posed by dollar-backed stablecoins in high-inflation environments. By focusing on real-world case studies and policy debates, attendees will be equipped to analyze the risks and opportunities of a digital monetary future and to formulate strategies that safeguard price stability.

Duration: 10 days

Target Audience:

• Central Bank Officials
• Financial Regulators and Supervisors
• Economists and Macroeconomic Analysts
• Payment Systems Professionals
• Cybersecurity and Technology Specialists
• Legal and Compliance Officers
• Public Policy Professionals
• Researchers and Academics
• Financial Market Participants
• Government Treasury Officials

Objectives:

• Master the core principles of digital currencies and their macroeconomic implications.
• Learn to analyze the potential impact of CBDCs on the banking system and credit.
• Understand the channels through which private stablecoins can affect monetary policy.
• Grasp the complexities of designing a CBDC for a stable monetary system.
• Develop proficiency in modeling the effects of digital money on inflation.
• Explore best practices for regulating and supervising digital currencies.
• Learn about robust approaches to ensuring price stability in a digital economy.
• Identify the critical legal and governance frameworks for digital money.
• Develop skills in assessing the risks of currency substitution.
• Formulate strategies for building a resilient monetary system for the future.

Course Modules:

Module 1: The Evolution of Money

• From barter to central bank money
• The rise of digital payments and e-money
• The invention of cryptocurrencies and blockchain
• The concept of a Central Bank Digital Currency (CBDC)
• The role of a "clear and focused research question"

Module 2: The Core of Price Stability

• The definition of price stability and its benefits
• The role of a nominal anchor
• The instruments of monetary policy
• The importance of a "risk and mitigation" plan
• The transmission of monetary policy shocks

Module 3: CBDCs and the Monetary System

• The design features of a CBDC (e.g., interest-bearing, token-based)
• The potential impact on bank deposits and lending
• The role of a simple scorecard and a dashboard
• The use of a CBDC for targeted policy interventions
• The impact on monetary aggregates

Module 4: CBDCs and Monetary Policy

• The use of a CBDC as a new policy instrument
• The impact on the policy transmission mechanism
• The role of a "data story map"
• The challenges of the zero lower bound
• The role of a "clear and consistent reporting style"

Module 5: Stablecoins and Financial Stability

• The different types of stablecoins (e.g., fiat-backed, algorithmic)
• The risk of a "stablecoin run"
• The role of a program's theory of change
• The implications for central bank oversight
• The impact on monetary sovereignty

Module 6: Private Digital Currencies and Inflation

• The limited adoption of cryptocurrencies as a medium of exchange
• The importance of a "stakeholder analysis"
• The potential for hyperinflation in a decentralized system
• The role of a clear and compelling KPI
• The use of digital currencies as a hedge against inflation

Module 7: The Policy Trilemma in a Digital Age

• The traditional trilemma (monetary independence, fixed exchange rate, capital mobility)
• The impact of digital currencies on the trilemma
• The importance of a "risk and mitigation" plan
• The role of a simple scorecard and a dashboard
• The challenges of managing capital flows

Module 8: Central Bank Communication

• The importance of communicating a CBDC strategy
• The role of a "data story map"
• The use of a "clear and consistent reporting style"
• The impact of a CBDC on public trust
• The role of a "program's theory of change"

Module 9: Legal and Regulatory Frameworks

• The need for a new legal framework for digital money
• The importance of a "stakeholder analysis"
• The role of anti-money laundering (AML) regulations
• The role of a clear and compelling KPI
• The challenges of cross-border cooperation

Module 10: Cybersecurity and CBDCs

• The unique security vulnerabilities of a CBDC system
• The importance of a "clear and focused research question"
• The role of a "risk and mitigation" plan
• The use of cryptographic security
• The role of a simple scorecard and a dashboard

Module 11: Case Studies of CBDCs

• Case study: The digital yuan (e-CNY)
• Case study: The Sand Dollar in the Bahamas
• Case study: The e-Naira in Nigeria
• Lessons learned from global experiences
• The importance of a "data story map"

Module 12: Applied Econometrics

• Modeling the impact of digital money on monetary aggregates
• The use of a "clear and consistent reporting style"
• The role of a "program's theory of change"
• The impact of digital currencies on the velocity of money
• The use of a clear and compelling KPI

Module 13: The Future of Money

• The rise of tokenization and asset digitization
• The importance of a "stakeholder analysis"
• The future of payment systems
• The role of a "clear and focused research question"
• The potential for a multi-polar digital monetary system

Module 14: The Public Debate

• The arguments for and against a CBDC
• The importance of a "risk and mitigation" plan
• The role of privacy and surveillance concerns
• The use of a simple scorecard and a dashboard
• The role of a "data story map"

Module 15: Policy Tools for a Digital Age

• The potential for a tiered interest rate system
• The use of a "clear and consistent reporting style"
• The role of a "program's theory of change"
• The implications for open market operations
• The importance of a "stakeholder analysis"

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 10 working days before commencement of the training.