Despite rapid progress on research into central bank digital currencies (CBDCs), more work is needed in some important areas, a Bank for International Settlements working paper says.

Raphael Auer and co-authors identify cross-border CBDCs as an area where policy development is “marching beyond the research frontier”.

The paper explores the literature on CBDCs to date. It notes that central banks are moving towards solving some of the systemic issues identified in early research, for example by