The Importance of Where Central Bank Digital Currencies Are Custodied: Exploring the Need of a Universal Access Device

The project to issue digital currencies using Distributed Ledger Technology is not new and unique. What DLT permits is to go beyond what today we conceive monetary policy and financial inclusion. The idea to issue Central Bank Digital Currencies (from now on, CBDCs) is so disruptive that they can change the way we look at money, one of the earliest inventions of humanity, and forge a universal currency possible again. As soon as digital asset trading evolved into a market, developers started releasing digital wallets for their storage. While these attempts are the recognition of users’ needs, their technical level still leaves some space for improvements. Among CBDC related issues, the development of a secure wallet infrastructure is gaining recognition as one way to solve the critical problems like ensuring equal access to banking facilities. Also, it can offer a novel way to approach digital identity and other functional issues concerning digital assets. Whenever we are executing a financial transaction, the monetary realm is not the only consequence: issues about fair competition, ownership, and management of our personal information come into play. An infrastructure is needed to protect and support our digital rights. This technology is ready to support the development of a secure essential Universal Access Device (UAD), a single key tool for protecting and representing us, and the organisation for keeping it from a network. UAD would enable the full benefits of DLT, putting the separation of payment institutions and investment banks back at the core of political agendas; facilitating micro-payments; and, addressing, using money for illicit purposes more effectively. All the above considered, this paper aims to explore the arising legal and economic issues following the adoption of UADs.