In this chapter, we talk about three main topics. We first define the issues that a central bank digital currency (CBDC) could address and the reasons to enhance our understanding of CBDCs. Second, we discuss the optimal design principles of a CBDC as they arose from various conversations with central banks, national and supranational authorities, market participants, and academics in various jurisdictions. Finally, we propose a well-rounded and robust solution for a retail CBDC based on Algorand technology which meets these design principles. Most of the content of this chapter is borrowed from the White Paper Issuing Central Bank Digital Currency Using Algorand by Civelli, Georg, Grassano, and Ihsanullah (2022). In that paper, we extensively cover the CBDC design and issuance topics, informed by our recent participation in various pilots, studies, and round-table conversations on these topics.

The internet, social media, smartphones and encryption have radically changed the way goods are bought, sold and advertised. In doing so, they have opened up new markets and increased economic opportunities, enabling advertising to reach a global and more targeted audience. Individuals can start an online business or take on a second job more easily than ever before. Technology has disrupted many areas of the economy. Digital currencies, such as Bitcoin, have facilitated encrypted online transactions without the need for processing by a third party such as a bank. Blockchain technology has enabled contracts to be executed online instead of requiring a hard copy to be signed by the parties as a means of verifying an agreement. Online businesses have emerged to disrupt traditional models in a range of sectors, including transportation, where ride- sharing apps have challenge taxis; accommodation, in the form of apps used to book private homes or rooms for short stays; and online clothing retailers that can offer substantially reduced prices with minimal rent and staffing costs. Developments such as these raise a number of legal and regulatory issues; for example, digital currencies may increase opportunities for fraud and create challenges for law enforcement agencies investigating online distributors of illegal drugs. In considering the issues associated with law, technology and commerce, this chapter begins with a discussion of digital currencies, and then proceeds to examine online markets and services, electronic contracting, and changes brought by new technology for professional services and other businesses. Emerging issues such as anti-competitive practices are also discussed.