CUSTOMIZE 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