Abstract:
The fight against corruption requires transparency as a critical weapon in t he arsenal.
Given the subjective nature of these events, they are considered among the most challenging to assess. The growing interest in digital currencies such as Bitcoin and the
underlying blockchain and distributed ledger technology (DLT) has created opportunities
for significant impact on the financial sector and even the broader economy. This
thesis examines the potential for a Central Bank Digital Currency (CBDC) to transform
all aspects of the monetary system and provide greater transparency to the governing
authorities. Our research has concluded that a CBDC, specifically, could serve as a virtually cost free and transparent medium of exchange, a secure store of value, and a reliable unit of account. We have considered the feasibility of implementing CBDC in any country and have identified potential trade-offs that could be negotiated by all stakeholders to achieve a minimum-cost solution for users and infrastructure. The thesis emphasizes the importance of every country, including Pakistan, developing its own CBDC to meet its unique needs and challenges, and highlights the significance of providing a solid framework to ensure the successful implementation of CBDC in the country.
