Episode 12: Agent-Based Simulation of CBDC

In this podcast episode, Valentin Seehausen, COO of the DEA, interviews Dr. Kimmo Soramäki from FNA. FNA builds models that are based on agent-based modelling (ABM) and consults central banks from all over the world. Valentin and Kimmo discuss how the ABM approach differs from models that central banks have been using in the last decades. They focus on the CBDC simulator, an ABM model that can simulate the effects that different parameters of a CBDC could have on the economy.

FNA’s technology enables decision makers and business analysts to easily uncover hidden connections, access and understand complex networks and create dashboards & simulations.

Central Bank Digital Currencies (CBDCs) have seized global attention, featuring broadly in central bank strategies.

Today, 87 central banks are currently looking to introduce digital currencies in the near future, however the impacts of CBDCs are still relatively unknown.

Many questions frequently cross the minds of regulators, banks and payment companies worldwide. What impact will introducing a CBDC have on the financial and economic system? Can CBDC’s be configured without largely impacting the banking sector balance sheet? Could card companies suffer a substantial decline in their transaction revenues? We will try to answer some in this episode.