Slides prepared for the economists café at the Rabobank, June 26, 2019, with the goal of clarifying how full reserve banken and central bank digital currencies may be niece and nephew while Libra remains an Orphan.

1. Central bank digital currencies -
full reserve banks and Libra …?
ESB Panel discussion on central bank digital currencies
June 26, 2019
Simon Lelieveldt
@finhstamsterdam

2. Five essential questions…
• Who is issuing
• Which currency
• Under which legal guarantuee
• How is it backed?
• Using which system
Deze foto van Onbekende auteur is gelicentieerd onder CC BY-NC

3. 1609
City of
Amsterdam
Bankgulden
100 %
Reserve in metal
Customers
Paper based
account system
Government guarantee
FULL RESERVE
BANK !

4. Account system
Digital (FA)
1976-19971609
City of
Amsterdam
Bankgulden
100 %
Reserve in metal
Customers
Dutch Central
Bank - DNB
Government guarantee
Customers
Gulden
Paper based
account system
Government guarantee
100 %
Reserve
FULL RESERVE
BANK !
FULL RESERVE
BANK !

5. Account system
Digital (FA)
1976-19971609
City of
Amsterdam
Bankgulden
100 %
Reserve in metal
Customers
Dutch Central
Bank - DNB
Government guarantee
Customers
Gulden
Paper based
account system
Government guarantee
100 %
Reserve
FULL RESERVE
BANK !
FULL RESERVE
BANK !
1998 ->
Fin. Instit.
Target2 –
system
Euro
Gov. guarantee
Dutch Central
Bank - DNB
100 %
Reserve

6. Account system
Digital (FA)
1976-19971609
City of
Amsterdam
Bankgulden
100 %
Reserve in metal
Customers
Government guarantee
Customers
Gulden
Paper based
account system
Government guarantee
100 %
Reserve
FULL RESERVE
BANK !
FULL RESERVE
BANK !
1998 ->
Fin. Instit.
Target2 –
system
Euro
Gov. guarantee
100 %
Reserve
2020?
CBDC-
system
Customers
CBDC = FULL
RESERVE BANK
DNB or Mnstr
of Finance ?
100 %
Reserve
Euro
Dutch Central
Bank - DNB
Dutch Central
Bank - DNB
Gov. guarantee

7. ‘Coins’, bank notes and ledgers: all the same !
1. A coin or a bank note is a transferable slice of a
ledger entry (of an issuing institution).
2. Central bank issued digital currencies are a
technical variation to a central bank operated
account system.
3. The bit-’coin’ is a divisable transferable ledger
entry of a crowd sourced database with maximum
amount of 21M

9. 2019
E-money
accounts
GOOGLE
LITHUANIA
Euro
Customers
FULL RESERVE
E-MONEY
100 %
Reserve at
ECB
No. guarantee

10. 2015
E-money
accounts
FACEBOOK
IRELAND
Euro, Pound
Customers
E-MONEY
100 %
Reserve at
Comm. banks
No. guarantee
2019
E-money
accounts
GOOGLE
LITHUANIA
Euro
Customers
FULL RESERVE
E-MONEY
100 %
Reserve at
ECB
No. guarantee

11. 2015
E-money
accounts
FACEBOOK
IRELAND
Euro, Pound
Customers
E-MONEY
100 %
Reserve at
Comm. banks
No. guarantee
FACEBOOK INTERNATIONAL
Libra = curr. basket
Members – resellers –
validators - promotors
Securities guarantee
Primary Market in Libra
Customers
Exchanges – other
institutions
Secondary Market in Libra
Retail Market in Libra
CALIBRA =
MEMBER
LIBRA AS. =
ISSUER
Association:
1. Manage
reserve fund
2. Manage open
source code and
technical
roadmap
100 %
Reserve
SECURITY +
PAYMENTS
PAYMENT IN KIND
(curr. Basket)
DISCONNECT
BETWEEN
CUSTOMER
DEMAND AND
LIBRA

15. FACEBOOK INTERNATIONAL
Libra = curr. basket
Members – resellers –
validators - promotors
Securities guarantee
Primary Market in Libra
Customers
Exchanges – other
institutions
Secondary Market in Libra
Retail Market in Libra
CALIBRA =
MEMBER
LIBRA AS. =
ISSUER
Association:
1. Manage reserve
fund
2. Manage open
source code and
technical roadmap
100 %
Reserve
SECURITY +
PAYMENTS

16. 2020?
CBDC-
system
CBDC = FULL
RESERVE BANK
DNB or Mnstr
of Finance ?
Euro
Gov. guarantee
Customers
100 %
Reserve
FACEBOOK INTERNATIONAL
Libra = curr. basket
Members – resellers –
validators - promotors
Securities guarantee
Primary Market in Libra
Customers
Exchanges – other
institutions
Secondary Market in Libra
Retail Market in Libra
CALIBRA =
MEMBER
LIBRA AS. =
ISSUER
Association:
1. Manage reserve
fund
2. Manage open
source code and
technical roadmap
100 %
Reserve
SECURITY +
PAYMENTS

17. 2020?
CBDC-
system
CBDC = FULL
RESERVE BANK
DNB or Mnstr
of Finance ?
Euro
Gov. guarantee
Customers
100 %
Reserve
2019
E-money
accounts
GOOGLE
LITHUANIA
Euro
Customers
FULL RESERVE
E-MONEY
100 %
Reserve at
ECB
No. guarantee
FACEBOOK INTERNATIONAL
Libra = curr. basket
Members – resellers –
validators - promotors
Securities guarantee
Primary Market in Libra
Customers
Exchanges – other
institutions
Secondary Market in Libra
Retail Market in Libra
CALIBRA =
MEMBER
LIBRA AS. =
ISSUER
Association:
1. Manage reserve
fund
2. Manage open
source code and
technical roadmap
100 %
Reserve
SECURITY +
PAYMENTS

18. 2020?
CBDC-
system
CBDC = FULL
RESERVE BANK
DNB or Mnstr
of Finance ?
Euro
Gov. guarantee
Customers
100 %
Reserve
2019
E-money
accounts
GOOGLE
LITHUANIA
Euro
Customers
FULL RESERVE
E-MONEY
100 %
Reserve at
ECB
No. guarantee
FACEBOOK INTERNATIONAL
Libra = curr. basket
Members – resellers –
validators - promotors
Securities guarantee
Primary Market in Libra
Customers
Exchanges – other
institutions
Secondary Market in Libra
Retail Market in Libra
CALIBRA =
MEMBER
LIBRA AS. =
ISSUER
Association:
1. Manage reserve
fund
2. Manage open
source code and
technical roadmap
100 %
Reserve
SECURITY +
PAYMENTS
?

20. 2020?
CBDC-
system
CBDC = FULL
RESERVE BANK
DNB or Mnstr
of Finance ?
Euro
Gov. guarantee
Customers
100 %
Reserve

21. 2020?
CBDC-
system
CBDC = FULL
RESERVE BANK
DNB or Mnstr
of Finance ?
Euro
Gov. guarantee
Customers
100 %
Reserve
E-money
accounts
Euro
Customers
FULL RESERVE
E-MONEY
100 %
Reserve at
ECB
No. guarantee
2020?
DEPOSITOBANK
LITHUANIA

22. 2020?
CBDC-
system
CBDC = FULL
RESERVE BANK
DNB or Mnstr
of Finance ?
Euro
Gov. guarantee
Customers
100 %
Reserve
E-money
accounts
Euro
Customers
FULL RESERVE
E-MONEY
100 %
Reserve at
ECB
No. guarantee
E-money
accounts
VOLKSBANK
(USO)
Euro
Customers
100 %
Reserve at
ECB
FULL RESERVE
E-MONEY
No. guarantee
2020? 2020?
DEPOSITOBANK
LITHUANIA

23. 2020?
CBDC-
system
CBDC = FULL
RESERVE BANK
DNB or Mnstr
of Finance ?
Euro
Gov. guarantee
Customers
100 %
Reserve
E-money
accounts
DEPOSITOBANK
LITHUANIA
Euro
Customers
FULL RESERVE
E-MONEY
100 %
Reserve at
ECB
No. guarantee
E-money
accounts
VOLKSBANK
(USO)
Euro
Customers
2014
Deposit
accounts
BUNQ
BANK
Euro
Customers
9x %
Reserve at ECB
9x% RESERVE
BANK
Dep. guarantee
100 %
Reserve at
ECB
FULL RESERVE
E-MONEY
No. guarantee
2020? 2020?

24. 2020?
CBDC-
system
CBDC = FULL
RESERVE BANK
DNB or Mnstr
of Finance ?
Euro
Gov. guarantee
Customers
100 %
Reserve
E-money
accounts
DEPOSITOBANK
LITHUANIA
Euro
Customers
FULL RESERVE
E-MONEY
100 %
Reserve at
ECB
No. guarantee
E-money
accounts
VOLKSBANK
(USO)
Euro
Customers
2014
Deposit
accounts
BUNQ
BANK
Euro
Customers
9x %
Reserve at ECB
9x% RESERVE
BANK
Dep. guarantee
100 %
Reserve at
ECB
FULL RESERVE
E-MONEY
No. guarantee
2020?2020?
E-money
accounts
DEPOS. BANK
NEDERLAND
Euro
Customers
FULL RESERVE
E-MONEY
100 %
Reserve at
ECB
2025?
No. guarantee

26. 2020?
CBDC-
system
CBDC = FULL
RESERVE BANK
DNB or Mnstr
of Finance ?
Euro
Gov. guarantee
Customers
100 %
Reserve

27. 2020?
CBDC-
system
CBDC = FULL
RESERVE BANK
DNB or Mnstr
of Finance ?
Euro
Gov. guarantee
Customers
2007
E-money
accounts
PAYPAL
BANK
Euro
Customers
No. guarantee
100 %
Reserve
100 %
Reserve at
Comm. banks
E-MONEY

28. 2020?
CBDC-
system
CBDC = FULL
RESERVE BANK
DNB or Mnstr
of Finance ?
Euro
Gov. guarantee
Customers
2007
E-money
accounts
PAYPAL
BANK
Euro
Customers
No. guarantee
100 %
Reserve
100 %
Reserve at
Comm. banks
E-MONEY
2014
Deposit
accounts
BUNQ
BANK
Euro
Customers
9x %
Reserve at ECB
9x% RESERVE
BANK
Dep. guarantee

29. 2020?
CBDC-
system
CBDC = FULL
RESERVE BANK
DNB or Mnstr
of Finance ?
Euro
Gov. guarantee
Customers
2007
E-money
accounts
PAYPAL
BANK
Euro
Customers
No. guarantee
100 %
Reserve
100 %
Reserve at
Comm. banks
E-MONEY
2015
E-money
accounts
FACEBOOK
IRELAND
Euro, Pound
Customers
E-MONEY
100 %
Reserve at
Comm. banks
No. guarantee

30. 2020?
CBDC-
system
CBDC = FULL
RESERVE BANK
DNB or Mnstr
of Finance ?
Euro
Gov. guarantee
Customers
2007
E-money
accounts
PAYPAL
BANK
Euro
Customers
No. guarantee
100 %
Reserve
100 %
Reserve at
Comm. banks
E-MONEY
2015
E-money
accounts
FACEBOOK
IRELAND
Euro, Pound
Customers
E-MONEY
100 %
Reserve at
Comm. banks
No. guarantee
2019
E-money
accounts
GOOGLE
LITHUANIA
Euro
Customers
FULL RESERVE
E-MONEY
100 %
Reserve at
ECB
No. guarantee

31. 2020?
CBDC-
system
CBDC = FULL
RESERVE BANK
DNB or Mnstr
of Finance ?
Euro
Gov. guarantee
Customers
2007
E-money
accounts
PAYPAL
BANK
Euro
Customers
No. guarantee
100 %
Reserve
100 %
Reserve at
Comm. banks
E-MONEY
2014
Deposit
accounts
BUNQ
BANK
Euro
Customers
9x %
Reserve at ECB
9x% RESERVE
BANK
Dep. guarantee
2015
E-money
accounts
FACEBOOK
IRELAND
Euro, Pound
Customers
E-MONEY
100 %
Reserve at
Comm. banks
No. guarantee
2019
E-money
accounts
GOOGLE
LITHUANIA
Euro
Customers
FULL RESERVE
E-MONEY
100 %
Reserve at
ECB
No. guarantee

36. Association members backing out…