Changing banks, and money | Hubert Knapp | VOX Ep. 82

Questions about the purpose of central-bank digital currencies (CBDCs) are more pressing than ever. What are they for? How should they work? What does a CBDC imply for commercial banks and e-wallet providers?

Hubert Knapp is managing partner at Chavanette Advisors, a boutique consultancy that is providing central banks with research and tools for a CBDC strategy. Knapp brings enormous experience, having spent a career in Southeast Asia helping commercial banks with digital transformation.

He speaks with DigFin’s Jame DiBiasio about those digital projects, why banks are still not ready for end-to-end digital capabilities, and why the advent of CBDCs will force faster and deeper change upon the banking industry.

• Timecodes:
• 0:00 – Hubert Knapp, Chavanette Advisors
• 2:15 – Hubert’s journey helping Asian banks go digital
• 5:05 – Why “digital transformation” is different today, the role of APIs, and the impact on banks and their people
• 9:09 – Core banking systems are in crisis and face new vulnerabilities
• 11:34 – Culture versus investment, and why banks are still talking about changing customer service
• 13:08 – “Shaky foundations” of focusing on UX and not the architecture
• 14:10 – Banks aren’t ready for DLT and other next-gen tech, but CBDCs will force them to change
• 16:22 – Why bankers should be excited about these changes, and why the Silicon Valley Bank collapse is a warning
• 22:40 – CBDC’s impact on commercial banking
• 25:17 – Chavanette’s views and how CBDCs will impact fractional-reserve banking
• 29:18 – Wholesale versus retail CBDCs
• 31:45 – Implications for e-wallets
• 33:01 – Is blockchain relevant?
• 34:39 – Expected developments and possible deployments