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Central Bank opens registration for digital real digital technical testing
Central Bank opens registration for digital real digital technical testing
The Banco Central do Brasil (BCB) has opened the registration period for Brazilian financial institutions  to participate in digital real technical testing, in accordance with BCB Resolution No. 315/2023, published on April 27, 2023. The testing will involve no real transactions (so it isn’t a pilot). Its aim is to validate the use of a DLT solution on the Hyperledger Besu platform, evaluating programmability and the ability to comply with legal and regulatory requirements, mainly related to privacy,  as well as its technological viability. https://www.bcb.gov.br/estabilidadefinanceira/real-digital-piloto
#Fintech#CBDC#Brazil#DFC
·thenationview.com·
Central Bank opens registration for digital real digital technical testing
Eurosystem to explore new technologies for wholesale central bank money settlement
Eurosystem to explore new technologies for wholesale central bank money settlement
The European Central Bank (ECB) announced that the Eurosystem will look into how wholesale financial transactions recorded on distributed ledger technology (DLT) platforms could be settled in central bank money (i.e., wholesale central bank digital currency (CBDC)). The purpose of this initiative is to (i) consolidate and further develop the ongoing work of Eurosystem central banks in this area, and (ii) gain insight into how different solutions could facilitate interaction between TARGET services and DLT platforms.
#Fintech#CBDC#Eurozone#wCBDC#DFC
·ecb.europa.eu·
Eurosystem to explore new technologies for wholesale central bank money settlement
National Digital ID Is A Foundation For CBDC
National Digital ID Is A Foundation For CBDC
"Whatever the advantages or disadvantages of central bank digital currency (CBDC), we aren’t going to get one anytime soon because we lack one of the crucial building blocks for a national digital currency that can deliver benefits to the new economy, and that is digital identity. If you want a case study, look at Sweden."
#Fintech#CBDC#DigitalID#DFC
·forbes.com·
National Digital ID Is A Foundation For CBDC
Bank of Mauritius to launch retail CBDC pilot in November
Bank of Mauritius to launch retail CBDC pilot in November
The Bank of Mauritius (BoM) is launching a Digital Rupee retail central bank digital currency (CBDC) in November 2023. It will be non-interest bearing and in the initial phase restricted to domestic use only, with cross-border transactions to be considered in a subsequent phase.  The central bank cited as motivations protecting monetary sovereignty and supporting anti-money laundering and countering the financing of terrorism (AML/CFT) efforts.  Also, according to the BoM, it is the first central bank to benefit from IMF technical assistance in this respect.
#Fintech#CBDC#Africa#Mauritius#DFC
·bom.mu·
Bank of Mauritius to launch retail CBDC pilot in November
eCurrency announces Centralized CBDC capability
eCurrency announces Centralized CBDC capability
"eCurrency Mint Inc. announces the release of the eCurrency Centralized CBDC platform to complement its Decentralized and Hybrid CBDC platforms. With this release, the company can support the full spectrum of central bank CBDC deployment options. eCurrency Mint is the leading CBDC technology provider enabling central banks to securely mint, issue, distribute and monitor digital currency. CBDC is the digital form of legal tender and a direct liability of the central bank. "
#Fintech#CBDC#eCurrency#DFC
·prnewswire.com·
eCurrency announces Centralized CBDC capability
Circle launches cross-chain USDC transfer protocol for Ethereum, Avalanche
Circle launches cross-chain USDC transfer protocol for Ethereum, Avalanche
Circle has launched a mainnet protocol that lets users transfer its USDC stablecoin between Ethereum and Avalanche. Previously, Avalanche users who held USDC on Ethereum had to deposit their coins with a Circle partner or use a third-party bridge to transfer their USDC from one network to the other. The new Cross-Chain Transfer Protocol (CCTP) protocol appears to do away with this need for USDC bridges. Unlike a traditional bridge, it doesn’t lock tokens sent to its contract. Instead, it completely destroys them and issues new tokens on the receiving network. Users can redeem these new tokens for bank deposits directly, by depositing the tokens with Circle or its partners. https://www.circle.com/en/pressroom/circle-delivers-usdc-interoperability-across-ecosystems-with-mainnet-launch-of-cross-chain-transfer-protocol
#Fintech#CryptoAssets#Stablecoins#Circle#USDC#Avalanche#DFC
·cointelegraph.com·
Circle launches cross-chain USDC transfer protocol for Ethereum, Avalanche
Circle’s Hope for Access to NY Fed’s RRP Could Be Squashed by Policy Change
Circle’s Hope for Access to NY Fed’s RRP Could Be Squashed by Policy Change
The Federal Reserve Bank of New York (NY Fed) has curbed its counterparty criteria for its reverse-repurchase program (RRP) in a way that could prevent stablecoin issuer Circle from accessing the Fed facility. Funds “organized for a single beneficial owner,” registered as “2a-7 funds” at the Securities and Exchange Commission (SEC), “generally will be deemed ineligible” under the new rules. The Circle Reserve Fund, managed by global investment management giant BlackRock Advisors, appears to fall into this category. https://www.newyorkfed.org/markets/opolicy/operating_policy_230425
#Fintech#CryptoAssets#Stablecoins#Circle#USDC#UnitedStates#DFC
·coindesk.com·
Circle’s Hope for Access to NY Fed’s RRP Could Be Squashed by Policy Change
Offline Digital Currency Technical Considerations
Offline Digital Currency Technical Considerations
In this month’s Central Bank Payment News (CBPN) spotlight, I wrote about past experiments with offline digital payments, technical considerations for offline digital currency, and what the future might hold for offline central bank digital currency (CBDC).
#Fintech#CBDC#Offline#DFC
·cbpn.currencyresearch.com·
Offline Digital Currency Technical Considerations
A digital euro: widely available and easy to use
A digital euro: widely available and easy to use
"With cash, central banks already provide a means of payment that is risk-free, widely accessible and easy to use, and that leaves no-one behind. But the rapid digitalisation of our economies requires us to complement cash with its evolution in the digital sphere: a digital euro. As a central bank, we need to be ready for future evolutions and make sure that the money we issue maintains its role as a monetary anchor in the digital era, thereby reassuring us that one euro is one euro whatever form it takes and wherever we go. And it cements people's trust in our currency."
#Fintech#CBDC#Eurozone#DFC
·ecb.europa.eu·
A digital euro: widely available and easy to use
ECB publishes progress report on digital euro and its digital wallet
ECB publishes progress report on digital euro and its digital wallet
The European Central Bank (ECB) published the 3rd progress report on the digital euro, as well as the findings of focus groups on people’s views on the features of a potential digital wallet. The digital euro will be potentially available initially to euro area residents, merchants and governments, it could be made available via existing banking apps and a Eurosystem app, and offline and person-to-person payments were seen as highly valued.
#Fintech#CBDC#Eurozone#Offline#Wallets#DFC
·ecb.europa.eu·
ECB publishes progress report on digital euro and its digital wallet
Russia drafts law to use digital assets for cross border payments
Russia drafts law to use digital assets for cross border payments
Russia’s parliament reportedly published a draft law as part of an experimental regime to support the use of digital assets for cross border payments to help evade sanctions, and reduce the FX risk associated with settling dollar and euro transactions in other currencies. Russia already has a legal framework for tokenized assets for domestic usage, but additional legislation is needed to allow their use for cross border settlements.
#Fintech#CBDC#CrossBorder#Russia#DFC
·ledgerinsights.com·
Russia drafts law to use digital assets for cross border payments
US: I tried to pay my taxes in cash – here’s what happened
US: I tried to pay my taxes in cash – here’s what happened
As further evidence of how flakey the "legal tender" concept is, this article documents the great difficulties the author had in paying his income tax in cash to the U.S. Internal revenue Service (IRS). It highlights some of the challenges faced by Americans without bank accounts, likely among the poorest taxpayers, who would either have to follow the arduous process followed by the article's author, or pay fees for various end-arounds.
#Fintech#Cash#UnitedStates#LegalTender#CBDC#DFC
·cashessentials.org·
US: I tried to pay my taxes in cash – here’s what happened
Zimbabwe’s central bank to issue gold-backed digital currency: Report
Zimbabwe’s central bank to issue gold-backed digital currency: Report
The Reserve Bank of Zimbabwe (RBZ) is reportedly set to introduce a gold-backed digital currency to serve as legal tender in the country. The move will allow small amounts of Zimbabwean dollars to be exchanged for the digital gold token. RBZ Governor John Mangudya said that this will represent the first steps by the central bank towards using the country’s gold reserves to tame Zimbabwe dollar depreciation. https://www.sundaymail.co.zw/rbz-introduces-gold-backed-digital-currency
#Fintech#CryptoAssets#CBDC#Zimbabwe#DFC
·cointelegraph.com·
Zimbabwe’s central bank to issue gold-backed digital currency: Report
Chinese city of Changshu plans to pay employees using digital yuan
Chinese city of Changshu plans to pay employees using digital yuan
Changshu city will reportedly start paying civil servants and people who work for public institutions with e-CNY central bank digital currency (CBDC) starting in May 2023. The move marks a major step to promote the use of the digital currency, in the face of many hurdles, including its limited use cases, and the public’s preference for popular digital payment platforms such as WeChat Pay and Alipay.
#Fintech#CBDC#China#Asia#DFC
·scmp.com·
Chinese city of Changshu plans to pay employees using digital yuan
Uptake of e-CNY remains disappointing
Uptake of e-CNY remains disappointing
According to Changchun Mu, director of the People's Bank of China’s Digital Currency Institute, China’s e-CNY CBDC needs to be made more appealing and user friendly in order to satisfy market needs. He was speaking at the Bank for International Settlements (BIS) Innovation Summit on March 22, 2023 and gave a surprisingly frank assessment of the status of the e-CNY pilot project. https://www.bis.org/author/changchun_mu.htm
#Fintech#CBDC#China#DFC
·linkedin.com·
Uptake of e-CNY remains disappointing
Bank of Japan CBDC PoC Phase 2 Results
Bank of Japan CBDC PoC Phase 2 Results
The Bank of Japan (BoJ) published the results of Phase 2 of its central bank digital currency (CBDC) proof-of-concept (PoC) that was conducted between April 2022 and March 2023. Although it is only available in Japanese, Norbert Gehrke wrote a summary of the report in English. The objective of the PoC Phase 2 was to uncover potential technical issues early as they relate to the basic functions covered in Phase 1. Some desirable peripheral functions not covered in Phase 1 were also added. Then, the technical implementation and processing performance was validated. https://www.boj.or.jp/paym/digital/dig230417a.pdf
#Fintech#CBDC#Japan#DFC
·medium.com·
Bank of Japan CBDC PoC Phase 2 Results
State Bank of India e-Rupee FAQ
State Bank of India e-Rupee FAQ
For digital rupee users, SBI has allowed Rs 100,000 holding limit for the wallet. Users can load or unload up to Rs 25,000 per day, as per the website. Up to 20 transfers including inward and outward payments are allowed in a day. Users can pay or collect up to Rs 10,000 (versus Rs 200,000 for UPI transactions). However, the upper limit may vary from one bank to another.
#Fintech#CBDC#India#DFC
·sbi.co.in·
State Bank of India e-Rupee FAQ
Belarus Central Bank considers launching CBDC
Belarus Central Bank considers launching CBDC
The National Bank of the Republic of Belarus is reportedly considering issuing a central bank digital currency (CBDC) with an official announcement likely by the end of the year. The central bank's chairman said that a digital ruble proof of concept (PoC) has already been developed. https://www.belta.by/economics/view/budet-li-v-belarusi-tsifrovoj-rubl-natsbank-rasskazal-o-perspektivah-562154-2023/
#Fintech#CBDC#Belarus#DFC
·ledgerinsights.com·
Belarus Central Bank considers launching CBDC
SocGen subsidiary is first systemic bank to issue stablecoin on public blockchain
SocGen subsidiary is first systemic bank to issue stablecoin on public blockchain
Societe Generale subsidiary SocGen Forge unveiled the EUR-pegged EURCV stablecoin (EUR CoinVertible), which is initially being issued on the Ethereum public blockchain with plans for other blockchains as well. This is the first public blockchain stablecoin issued by a subsidiary of a global systemically important bank (G-SIB). Access to the fully-backed stablecoin is restricted to investors that have been through SocGen KYC and AML procedures. The motivation for the issuance includes using it as a robust settlement asset for on-chain transactions, corporate treasury, on-chain liquidity funding and an asset for margin calls.
#Fintech#CryptoAssets#Stablecoins#DFC
·ledgerinsights.com·
SocGen subsidiary is first systemic bank to issue stablecoin on public blockchain
The shape of things to come: innovation in payments and money
The shape of things to come: innovation in payments and money
Bank of England Deputy Governor Jon Cunliffe spoke about four areas where the tokenization of money is now being explored, stablecoins used for payments, the tokenization of commercial bank deposits, the next stage of the Bank of England’s Digital Pound work and the Bank’s work to ensure to ensure these new forms of money are robust and uniform. https://www.linkedin.com/feed/update/urn:li:activity:7054323252151599104/
#Fintech#CBDC#CryptoAssets#Stablecoins#Tokenization#UnitedKingdom#DFC
·bankofengland.co.uk·
The shape of things to come: innovation in payments and money
EU Parliament report warns of the risks of a digital euro
EU Parliament report warns of the risks of a digital euro
The European Parliament published a briefing ahead of a vote on whether to proceed with the technical implementation phase of a digital euro. While the report is broadly supportive of the preparatory work carried out by the European Central Bank (ECB), it is not a proponent of a digital euro itself. It casts doubts on the eventual launch of a central bank digital currency (CBDC), arguing that “when in doubt, [one should] abstain (but be prepared).” https://www.europarl.europa.eu/thinktank/en/document/IPOL_IDA(2023)741507
#Fintech#CBDC#Eurozone#DFC
·ledgerinsights.com·
EU Parliament report warns of the risks of a digital euro
Global Money Transfers: It's Nexus Versus Icebreaker
Global Money Transfers: It's Nexus Versus Icebreaker
"Nexus or Icebreaker? Two competing ideas are jostling for attention, each promising to reshape the inefficiency-ridden landscape of moving money from one country to another. Instead of trying to choose between them, central banks ought to give both a shot. The European payment system recently did a trial linkup with Malaysia and Singapore under the Bank for International Settlements’ Nexus protocol, designed to transfer funds between bank accounts in different countries under 60 seconds. Meanwhile, the monetary authorities of Israel, Norway and Sweden have tested a separate BIS-backed initiative that achieves the same goal of fast cross-border retail payments. Project Icebreaker uses central bank digital currencies, or CBDCs, instead of bank accounts."
#Fintech#CBDC#FastPayments#CrossBorder#Payments#BIS#DFC
·bloomberg.com·
Global Money Transfers: It's Nexus Versus Icebreaker
Tether's market share grows to 61%, a two-year high
Tether's market share grows to 61%, a two-year high
Tether's USDT opened the year at a market cap of $66.2 billion, but has grown 22% to $81 billion. Circle's USDC has moved the opposite way, losing 21% of its market cap. USDT’s share of the stablecoin space is up to 61.5%, its highest mark in two years. The collapse of TerraUSD in May 2022 and shutdown of BinanceUSD (BUSD) in February have increased concentration in the stablecoin market. USDC is struggling amid regulatory concerns in the United States and fallout from banking chaos, when Circle revealed it had 8.25% of its USDC reserves in Silicon Valley Bank. Meanwhile, concerns persist exist around USDT over its underlying reserves.
#Fintech#CryptoAssets#Stablecoins#Tether#Circle#USDT#USDC#DFC
·coinjournal.net·
Tether's market share grows to 61%, a two-year high
Considerations for a US central bank digital currency
Considerations for a US central bank digital currency
US Federal Reserve Board Governor Michelle Bowman" gave a speech on her thoughts regarding U.S. central bank digital currency (CBDC). The whole speech is worth a read, but here is her key takeaways" "A potential U.S. CBDC, must be viewed through the lens of whether and how the payment system would be improved beyond what instant payment services will achieve. We should ask what current frictions exist or may emerge in the payment system that only a CBDC can solve, or that a CBDC can solve most efficiently? ...There could be some promise for wholesale CBDCs in the future for settlement of certain financial market transactions and processing international payments. When it comes to some of the broader design and policy issues, particularly those around consumer privacy and impacts on the banking system, it is difficult to imagine a world where the tradeoffs between benefits and unintended consequences could justify a direct access CBDC for uses beyond interbank and wholesale transactions."
#Fintech#CBDC#UnitedStates#DFC
·federalreserve.gov·
Considerations for a US central bank digital currency
Universal Monetary Unit White Paper
Universal Monetary Unit White Paper
The Digital Currency Monetary Authority (DCMA) has innovated a best-in-class design for CBDC leveraging a digital economic union. This paper outlines the blueprint for a best-in-class CBDC design and discusses how a digital economic union and an international CBDC could complement and strengthen the international monetary system. Several sovereign states have collaborated with the DCMA on a Model Law for an international CBDC, or money commodity, and have provided draft legislation for such outlined in Appendix 1.
#Fintech#CryptoAssets#Stablecoins#CBDC#DCMA#UMU#IMF#DFC
·umu.cash·
Universal Monetary Unit White Paper
Potential Scenarios for Deciding to Issue a Digital Shekelל
Potential Scenarios for Deciding to Issue a Digital Shekelל
The Bank of Israel outlined potential scenarios for deciding to issue a digital shekel central bank digital currency (CBDC), although a decision has not yet been made as to whether the Bank intends on doing so. One scenario would be if  the United States or the European Union were to decide to issue CBDC, or a significant number of other developed economies. Other scenarios include a decline in the legitimate use of cash and its acceptance in transactions in Israel, significant penetration of stablecoins or other private means of payment that would be broadly used, and continued and growing concentration in key segments of the domestic payments system.
#Fintech#CBDC#Israel#DFC
·boi.org.il·
Potential Scenarios for Deciding to Issue a Digital Shekelל
LUK: A simple new crypto primitive in Android 12 and its implications on decentralized double-spend detection with applications to Digital Cash
LUK: A simple new crypto primitive in Android 12 and its implications on decentralized double-spend detection with applications to Digital Cash
"This post describes a simple but foundational new cryptographic primitive – called LimitedUseKey or LUK – introduced in Android 12 (aka Android S, to be released later this year). This crypto primitive has far reaching implications on secure detection of decentralized double-spend in mobile devices. Hopefully this primitive and its variants enable new applications that are decentralized, peer-to-peer, faster and work offline (without Internet connectivity). Examples include digital ticketing, coupons, payments systems and Central Bank Digital Currencies (CBDCs)."
#Fintech#Payments#Offline#CBDC#Google#DFC
·zkblogyogins.wordpress.com·
LUK: A simple new crypto primitive in Android 12 and its implications on decentralized double-spend detection with applications to Digital Cash
Digital Currency: Central Banks Get Started with Digital Money
Digital Currency: Central Banks Get Started with Digital Money
"In this article, we discuss the key benefits and potential of CBDCs, provide an overview of the current landscape of projects in early 2022 and present some of the challenges that CBDC deployments will face. One such challenge is the support of offline CBDC payments, and the article is complemented with a position paper from Thales describing how offline CBDC payments could be designed."
#Fintech#CBDC#Offline#Thales#DFC
·thalesgroup.com·
Digital Currency: Central Banks Get Started with Digital Money
Towards a Two-Tier Hierarchical Infrastructure: An Offline CBDC Payment System
Towards a Two-Tier Hierarchical Infrastructure: An Offline CBDC Payment System
"We propose an offline payment system (OPS) protocol for CBDC that allows a user to make digital payments to another user while both users are temporarily offline and unable to connect to payment intermediaries (or even the Internet). OPS can be used to instantly complete a transaction involving any form of digital currency over a point-to-point channel without communicating with any payment intermediary, achieving virtually unbounded throughput and real-time transaction latency. "
#Fintech#CBDC#Offline#VISA#DFC
·arxiv.org·
Towards a Two-Tier Hierarchical Infrastructure: An Offline CBDC Payment System
DigiTally
DigiTally
"DigiTally is an overlay payment scheme for use on mobile phones, whose goals are to extend mobile phone payments to areas with poor connectivity and reduce transaction fees. DigiTally enables two people to do a payment transaction by simply copying short strings of numbers between their phones. This doesn't need either smartphones or a network connection. Either phone can upload the transaction later, once it gets a network connection. A short-term goal was a pilot project to explore the factors that affect payment service uptake."
#Fintech#Payments#Offline#CBDC#DFC
·kbaqer.com·
DigiTally