How to issue a central bank digital currency

With the emergence of Bitcoin and recently proposed stablecoins from BigTechs, such as Diem (formerly Libra), central banks face growing competition private actors offering their own digital alternative to physical cash. We do not address normative question whether a bank should issue currency (CBDC) or not. Instead, we contribute current research debate by showing how could so, if desired. propose token-based system without distributed ledger technology show earlier-deployed, software-only electronic cash can be improved upon preserve transaction privacy, meet regulatory requirements in compelling way, offer level quantum-resistant protection against systemic privacy risk. Neither monetary policy nor financial stability would materially affected because CBDC with this design replicate rather than deposits.