The Bitt Team recently attended the CBDC Conference in Istanbul on September 12-14, as Gold Sponsors, connecting with partners, clients, and allies in the space to contribute to the advancement of CBDC technology, design, and implementation. Our COO, Imran Khan, presenting on “Adapting to the Changing Needs of Central Banks” in the plenary session noted that:

“Bitt’s experience has shown that central bank motivations and approach to CBDCs are evolving, influenced by the changing economic environment, competing central bank priorities, and learnings from other CBDC deployments. We advocate the CBDC ecosystem, and especially the innovators in this space, to broaden services and products to meet central banks where they are in their journey today. We need to get creative and find ways to answer these open questions, to help our clients forward in their CBDC journey.”

To better align with central banks’ current needs, Bitt is thrilled to officially launch its new offering: Bitt Advisory Services. Having executed digital currency rollouts in 12 countries with multiple central banks, regulators, financial institutions, payment service providers, merchants and retail users, including the largest deployment in a democratic country to date, the team at Bitt has unparalleled experience in comprehensive digital currency solutions and strategy, and are now offering Bitt Advisory Services to monetary authorities, governments, and financial institutions.

Navigating the Future of Digital Currency with Bitt

In the dynamic world of digital currency, central banks, regulators, governments, and financial institutions alike are seeking support in developing a comprehensive and multifaceted strategy for deploying and utilizing digital currencies. To effectively execute a digital currency strategy, organization-wide coordination is required in addition to the delegation of key responsibilities to existing team members and new hires. Furthermore, communications are essential to the success of a digital currency rollout and involve many stakeholder types, each with unique requirements and concerns. An impact assessment is critical to not only understand the risks associated with the introduction of digital currency, but to also understand the technical and operational requirements for risk mitigation, and integration with the legacy financial system.

At Bitt, we understand that national digital currencies – particularly in the form of Central Bank Digital Currencies (CBDCs) and stablecoins – are more than just a technological innovation; they are a transformative force with the potential to reshape economies and redefine financial ecosystems. Their success requires extensive collaboration from stakeholders within the monetary authority and regulators, as well as the many financial services entities and infrastructure providers that comprise our financial system today. As monetary authorities progress in their CBDC journey, they require expert input to ensure that lessons learned from similar deployments, and operating experience, are incorporated in their strategy. Bitt’s team of experts recognized this need and were motivated to launch Bitt Advisory Services, some of which are outlined below.

A Vision Unveiled: Identifying Use Cases and Stakeholders

Identifying the myriad of use cases that can be serviced by a CBDC or stablecoin is a critical component to any digital currency strategy. Analyzing pain points in existing payment streams, determining opportunities for increased efficacy, decreased settlement time, and other user experience advantages can help inform a successful digital currency strategy that will deliver value to both the transacting public and the system operators. Our experts will work closely with you to create detailed descriptions of each use case while meticulously identifying all stakeholders who will partake in and play a role in the payment streams.

Navigating the Terrain: Analysis of the Existing Financial System

Understanding how the existing interconnected financial system functions, especially in the context of the introduction of a new digital currency payment rail, is paramount to a successful digital currency implementation. Financial stability is core to the mandate of the monetary authority and is the primary concern when making decisions or implementing strategies that could have an impact. Financial stability risks are derived from many factors including policy, governance, technology, and more, resulting in complex scenarios that require extensive analysis and consideration. Bitt’s team has gained valuable experience from designing, developing, and deploying the Digital Currency Management System (DCMS) in multiple countries, and integrating the solution with existing financial system infrastructure and services. A core element of Bitt Advisory Services includes a comprehensive analysis, where our experts meticulously map out the landscape of your domestic financial system

Plotting the Course: Developing a Go-To-Market Strategy

Launching a CBDC is more than just creating a digital currency; it's about shaping a future where users adopt it to solve tangible problems and create new opportunities for secure, efficient, and user-friendly transactions. Collaboration with the private sector is critical to achieve the many benefits stated in digital currency research over the past ~7 years. CBDCs and stablecoins are platforms on which a multitude of payment service providers integrate to offer unique and valuable payment services to the public. Integrating with a common network reduces settlement time and cost, further freeing up liquidity that can be put to use for productive efforts. Bitt’s team of experts recognize the variety of factors present in developing and executing a collaborative strategy with the private sector, and stand ready to assist monetary authorities from advisory and technology solution perspectives.

Building Trust: Communications Strategy

In the ever-evolving digital currency landscape, trustworthiness is paramount. In a time fraught with skepticism due to difficult economic conditions, privacy concerns, abuses of power, and other issues, monetary authorities must ensure they are transparent about the nature and functionality of their digital currency system. Providing clear and concise assurances to the transacting public regarding the nature of their digital currency platform will spur users to trust the solution and bolster adoption.

Seamless Transformation: Organizational Change Management

Rolling out a digital currency platform places additional responsibilities on the monetary authority, and often demands additional personnel to fill new roles that intersect technology and policy. Bitt has a longstanding history of collaboration with central banks and financial institutions, and we recognize the substantial impact, effort, and stress associated with the implementation of a digital currency platform. New procedures will need to be developed, existing procedures will require revision, and organizational structure will change. Our team offers experienced insight into how best to address your digital currency operational requirements, and will guide your institution in implementing an effective, transparent, and functional digital currency management strategy.

Navigating the Landscape: Regulatory & Legal

Understanding the political environment in the context of digital currencies is complicated and crucial to ensure a comprehensive strategy. We'll help you navigate the headwinds and tailwinds, and provide insight regarding best practices for successfully launching a digital currency. Additionally, we'll conduct a rigorous legal assessment, differentiating between legislation and compliance, and addressing data protection concerns. Our legal professionals have decades of experience in governance, privacy, and international statutory assessment. They can demystify any legal quandaries associated with implementing a digital currency platform.

Bitt's Professional Advisory Services represent more than just a service offering; they signify a partnership in unlocking the future of digital currency. The future of digital currency is unfolding before us, and together, we can shape it with expertise, innovation, and dedication to high standards.

For more information on Bitt Advisory Services, please reach out to us at [email protected] or visit www.bitt.com/advisory-services.

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