Central Bank Digital Currencies Project (CBDCs Project)

Following the inaugural HCCH Conference on Commercial, Digital and Financial Law Across Borders (CODIFI Conference) held online by the Permanent Bureau (PB) from 12 to 16 September 2022, the private international law aspects of CBDCs were identified as an area of interest for further study. Pursuant to a mandate from its Members in 2024 (see below under “Mandate”), the HCCH has convened an Experts’ Group to study the applicable law and jurisdiction issues raised by the cross-border use and transfers of CBDCs.

CBDCs are digital currencies issued by central banks. CBDCs have gained the attention of governments for their potential to be a “new form of money” that promotes various benefits and policy goals including financial inclusion; reduced transaction costs; resilience of payments in emergency situations; and increased competition in the payments sector. The development and cross-border circulation of this new form of currency raises questions regarding the requisite legal frameworks. The nature of CBDCs might pose challenges to applying conventional rules of private international law. Depending on the chosen model of operation, for example in relation to cross-border CBDCs access by non-residents, the role of private sector intermediaries may also become relevant.

• Exploratory Stage (2023-2024)

In March 2023, the Council on General Affairs and Policy (CGAP) “mandated the PB, in partnership with relevant subject-matter experts and Observers, to study the private international law implications of CBDCs. The PB will report to CGAP at its 2024 meeting on the outcomes of this study, including proposals for next steps. CGAP also mandated the PB to prepare for and organise an online colloquium on this topic, subject to available resources”. (Conclusions & Decisions (C&D) Nos 16 and 17)

On Thursday 5 October 2023, the PB held an online colloquium on selected topics related to the CBDCs Project. The colloquium, titled “CODIFI Edition 2023 – CBDCs”, featured a series of pre-recorded video discussions (see below), led by subject-matter experts of the CBDCs Project and other specialists of academia, government and industry. Live discussion sessions also took place on the same day to summarise the proceedings and provide ideas for the way forward. 

The agenda for the colloquium can be found here.

• Experts’ Group

In March 2024, CGAP “mandated the establishment of an Experts’ Group to study applicable law and jurisdiction issues raised by the cross-border use and transfers of CBDCs”. (C&D Nos 9 and 10)

The Experts’ Group was established in March 2024. The Kick-Off Meeting of the Experts’ Group will take place on 14 May 2024. The first working meeting of the Experts’ Group will take place from 24-28 June 2024.

• 2024: Exploratory Work: Private International Law Aspects of Central Bank Digital Currencies (CBDCs), Prel. Doc. No 4 of January 2024
• 2023: Proposal for Exploratory Work: Private International Law Aspects of Central Bank Digital Currencies (CBDCs), Prel. Doc. No 3B of January 2023
• 2022: Digital Economy and the HCCH Conference on Commercial, Digital and Financial Law Across Borders (CODIFI Conference): Report, Prel. Doc. No 3A of January 2023