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The U.S. Dollar in the Age of Digital Transformation
The U.S. Dollar in the Age of Digital Transformation
The US Federal Reserve Board published a discussion paper that examines the pros and cons of a potential U.S. central bank digital currency (CBDC). The paper summarizes the current state of the domestic payments system and discusses the different types of digital payment methods and assets that have emerged in recent years, including stablecoins and other cryptocurrencies. It concludes by examining the potential benefits and risks of a CBDC, and identifies specific policy considerations.
#Fintech#CBDC#UnitedStates#DFC
·federalreserve.gov·
The U.S. Dollar in the Age of Digital Transformation
FDIC-Backed Banks Send Stablecoins in USDF First
FDIC-Backed Banks Send Stablecoins in USDF First
NBH Bank and New York Community Bank have conducted the first USDF transaction over the Provenance Blockchain. NBH Bank minted the newly introduced stablecoin and sent it to a customer of New York Community Bank as part of a test run. USDF is a stablecoin offered by the USDF Consortium, a group of FDIC-backed banks that announced its formation last week.
#Fintech#CryptoAssets#Stablecoins#DFC
·coindesk.com·
FDIC-Backed Banks Send Stablecoins in USDF First
China’s New Digital Yuan App Earns 4.5 Stars out of 5
China’s New Digital Yuan App Earns 4.5 Stars out of 5

The new Peoples Bank of China (PBOC) e-CNY app has scored a 4.4 out of 5 in China's Apple App Store, and Richard Turrin, in his review, concurs. If the e-CNY is going to be accepted it's got to bring something to the table in addition to what's offered by Alipay and WeChat Pay, and Richard runs through the major new features that will be important enough that they’ll get some to change. These include: -Unlimited spending limits for e-CNY wallets that fulfill the highest level of know-your-customer (KYC), versus Alipay personal accounts that top out around RMB 20,000 (about $3,000). -The ability to set spending limits not just on the entire account but on all of the sub-wallets, a money management feature that the other payment platforms don’t have. -Payments of less than RMB 2000 ($300) are anonymous! There is no equivalent for the other payment platforms or even western credit cards.

#Fintech#CBDC#China#DFC
·linkedin.com·
China’s New Digital Yuan App Earns 4.5 Stars out of 5
Visa Partners With ConsenSys to Help Bridge CBDCs With Traditional Finance
Visa Partners With ConsenSys to Help Bridge CBDCs With Traditional Finance
Visa has teamed up with Ethereum scaling firm ConsenSys to help central bank digital currency (CBDC) networks bridge the gap with traditional financial institutions. Visa has created a CBDC Payments Module to serve as an on-ramp for CBDCs to existing payment networks. Banks and issuer processors will be able to plug into the module and integrate their existing infrastructure. Customers will eventually be able to use their CBDC-linked Visa card or digital wallet anywhere that Visa is accepted globally. Visa is currently in the process of integrating the Module with the ConsenSys Codefi CBDC sandbox powered by ConsenSys Quorum.
Visa Partners With ConsenSys to Help Bridge CBDCs With Traditional Finance
#Fintech#CBDC#VISA#ConsenSys#DFC
·coindesk.com·
Visa Partners With ConsenSys to Help Bridge CBDCs With Traditional Finance
Region-Wide Service Interruption of ECCB DCash Platform
Region-Wide Service Interruption of ECCB DCash Platform
On January 14, the Eastern Caribbean Central Bank (ECCB) DCash central bank digital currency (CBDC) platform experienced an interruption in service that has affected all users. This break in service has been caused by a technical issue and the subsequent necessity for additional upgrades. Since the breakdown, no DCash transactions are being processed.
#Fintech#CBDC#Caribbean#DFC
·eccb-centralbank.org·
Region-Wide Service Interruption of ECCB DCash Platform
Malaysia’s Digital Currency: Central Bank Studies Need for Electronic Money
Malaysia’s Digital Currency: Central Bank Studies Need for Electronic Money
Bank Negara Malaysia “is actively assessing the value proposition of central bank digital currency (CBDC) to Malaysia,” it said in an email to Bloomberg. “While a decision has not been made to issue CBDC, we have focused our research on CBDC via proof-of-concept and experimentation to enhance our technical and policy capabilities, should the need to issue CBDC arise in the future.” The central bank first signaled CBDC exploration intent in their 2020 annual report.
#Fintech#CBDC#Asia#DFC
·bloomberg.com·
Malaysia’s Digital Currency: Central Bank Studies Need for Electronic Money
Should the US outlaw CBDCs?
Should the US outlaw CBDCs?
"Current CBDC design papers avoid the most important leaks of government issued fiat currencies, resulting in meaningless discussions around the specifics of their implementation. Hundreds of experiments have shown that digital units of accounts can be moved and settled with finality instantly. And, a one-hundred-billion dollar peer-to-peer digital lending market proofs that databases and their custodians are not needed. Fiat money in digital form has always been in a constant state of lending. Digital bearer instruments can reliably remove middlemen - such as commercial banks - and finally allow rightful owners of currency to determine who they want to entrust with their funds."
#Fintech#CBDC#DFC
·linkedin.com·
Should the US outlaw CBDCs?
UK House of Lords - Central bank digital currencies: a solution in search of a problem?
UK House of Lords - Central bank digital currencies: a solution in search of a problem?
A U.K. House of Lords committee has concluded that there is "no convincing case" for the Bank of England to issue central bank digital currency (CBDC). It found that "while a CBDC may provide some advantages, it could present significant challenges for financial stability and the protection of privacy." The chair of the committee, said that the potential benefits of a CBDC are "overstated or achievable through less risky alternatives." Nevertheless, the report recommended that U.K. authorities continue to work with international partners on CBDC principles and standards while learning lessons on technical design and usage from the experiences of countries that introduce a CDBC, in case consumer payment preferences, technological developments and the choices of other countries enhance the case for a U.K. CBDC in the future.
#Fintech#CBDC#UnitedKingdom#DFC
·publications.parliament.uk·
UK House of Lords - Central bank digital currencies: a solution in search of a problem?
Central bank digital currencies (CBDCs) in Latin America and the Caribbean
Central bank digital currencies (CBDCs) in Latin America and the Caribbean
he Bank for International Settlements (BIS) published a paper that examines the views toward CBDCs Latin American and Caribbean (LAC) region central banks , drawing on their responses to a survey conducted by the BIS in late 2020 and early 2021. It also examines whether the engagement of LAC central banks with CBDCs can be explained by the structural characteristics of their economies. Thirdly, it reviews the long list of potential benefits, costs and risks of CBDCs, focusing on their relevance to the LAC economies. Finally, the paper reviews the design choices that central banks face and the actual choices made by a number of central banks in the region.
#Fintech#CBDC#SouthAmerica#Caribbean#DFC
·bis.org·
Central bank digital currencies (CBDCs) in Latin America and the Caribbean
BIS, SNB and SIX successfully test integration of wCBDC settlement with commercial banks
BIS, SNB and SIX successfully test integration of wCBDC settlement with commercial banks
The Bank for International Settlements, the Swiss National Bank and SIX successfully tested the integration of wholesale central bank digital currency (CBDC) settlement with the core banking systems of five commercial banks. The experiment explored the settlement of interbank, monetary policy and cross-border transactions on the test systems of SIX Digital Exchange, SIX Interbank Clearing (the Swiss real-time gross settlement system) and the core banking systems of Citi, Credit Suisse, Goldman Sachs, Hypothekarbank Lenzburg and UBS. The test was part of Project Helvetia, an ongoing investigation into the settlement of tokenised assets with wholesale CBDC.
#Fintech#CBDC#wCBDC#Settlement#DFC
·bis.org·
BIS, SNB and SIX successfully test integration of wCBDC settlement with commercial banks
USDF Consortium™ Launches to Enable Banks to Mint USDF Stablecoins
USDF Consortium™ Launches to Enable Banks to Mint USDF Stablecoins
The USDF Consortium, an association of FDIC-insured financial institutions, launched, with a mission to build a network of banks to further the adoption and interoperability of a bank-minted USDF stablecoin. USDF will be minted exclusively by U.S. banks and will be redeemable on a 1:1 basis for cash from a Consortium member bank. The Consortium's founding bank members include New York Community Bank, NBH Bank, FirstBank, Sterling National Bank, and Synovus Bank.
#Fintech#CryptoAssets#Stablecoins#UnitedStates#DFC
·prnewswire.com·
USDF Consortium™ Launches to Enable Banks to Mint USDF Stablecoins
What needs to happen for digital yuan to exit pilot mode?
What needs to happen for digital yuan to exit pilot mode?
One big advantage China has compared to other countries is the scale of state-owned institutions. These organizations are likely to be major drivers of adoption by paying salaries in digital yuan and incentivizing receiving payments in CBDC. So even if the average Chinese consumer isn’t that keen on the CBDC, there’s a good chance they’ll use it for public services such as transport. So a significant level of adoption may be all but guaranteed.
#Fintech#CBDC#China#DFC
·ledgerinsights.com·
What needs to happen for digital yuan to exit pilot mode?
Iran Is Creating Its Own Digital Currency
Iran Is Creating Its Own Digital Currency
The Central Bank of Iran will reportedly launch a central bank digital currency (CBDC) pilot after the Nowruz (Iranian New Year) holidays in March. Informatics Services Corporation has developed the digital rial platform over the past two years and the central bank has prepared the infrastructure.
#Fintech#CBDC#MiddleEast#DFC
·financialtribune.com·
Iran Is Creating Its Own Digital Currency
Hong Kong Monetary Authority - Discussion Paper on Crypto-assets and Stablecoins
Hong Kong Monetary Authority - Discussion Paper on Crypto-assets and Stablecoins
The Hong Kong Monetary Authority (HKMA) released a Discussion Paper that lays out its thinking on the regulatory approach for crypto assets, particularly payment-related stablecoins. Members of the public and the industry are welcome to submit their responses before March 31, 2022.
#Fintech#CryptoAssets#Stablecoins#DFC
·hkma.gov.hk·
Hong Kong Monetary Authority - Discussion Paper on Crypto-assets and Stablecoins
Central Bank Digital Turkish Lira R&D Project
Central Bank Digital Turkish Lira R&D Project
The Central Bank of the Republic of Turkey signed bilateral memorandums of understanding with ASELSAN, HAVELSAN and TÜBİTAK-BİLGEM, and established the “Digital Turkish Lira Collaboration Platform” in September 2021.
#Fintech#CBDC#DFC
·tcmb.gov.tr·
Central Bank Digital Turkish Lira R&D Project
Framework for Facilitating Small Value Digital Payments in Offline Mode
Framework for Facilitating Small Value Digital Payments in Offline Mode
The Reserve Bank of India (RBI) has introduced a framework to enable small value digital payments in offline mode using cards, wallets, mobile devices, etc. in proximity (face to face) mode. This followed pilot testing undertaken by some entities between September 2020 and July 2021. The upper limit of an offline payment transaction shall be ₹200. The total limit for offline transactions on a payment instrument shall be ₹2,000 at any point in time. Replenishment of used limit shall be allowed only in online mode with an Additional Factor of Authentication (AFA). The issuer shall send transaction alerts to users as soon as transaction details are received, implying that an online connection is required at some point, so it's not a purely offline payment system.
#Fintech#Payments#CBDC#Offline#India#DFC
·rbi.org.in·
Framework for Facilitating Small Value Digital Payments in Offline Mode
Global CBDC Challenge 2021 Report
Global CBDC Challenge 2021 Report
The Monetary Authority of Singapore published a summary of the results of the Global Central Bank Digital Currency (CBDC) Challenge conducted in partnership with the International Monetary Fund, World Bank, Asian Development Bank, United Nations , and the Organization for Economic Co-operation and Development. The Challenge was aimed at identifying and developing retail CBDC solutions that increase payment efficiencies, improve financial inclusion and support the broader digitalization drive in the economy. The report goes through the Challenges various phases and includes highlights of the solutions presented by the 15 finalists during the Singapore Fintech Festival 2021 in November 2021 at which the three winning entries were selected.
#Fintech#CBDC#DFC
·mas.gov.sg·
Global CBDC Challenge 2021 Report
PayPal Explores Launch of Own Stablecoin in Crypto Push
PayPal Explores Launch of Own Stablecoin in Crypto Push
PayPal is exploring the launch of its own stablecoin as part of its cryptocurrency push. Evidence of the company’s exploration into building a stablecoin was first discovered in PayPal’s app by developer Steve Moser. Hidden code and images show work on what is dubbed a “PayPal Coin.” The code indicates such a coin would be backed by the U.S. dollar. A PayPal spokeswoman said that the images and code inside of the PayPal app stemmed from a recent internal hackathon.
#Fintech#CryptoAssets#Stablecoins#PayPal#DFC
·bloomberg.com·
PayPal Explores Launch of Own Stablecoin in Crypto Push
WeChat Enables E-Yuan Payments
WeChat Enables E-Yuan Payments
WeChat will reportedly join AliPay in supporting the People's Bank of China e-CNY pilot. Payments can be made through WeChat Pay by scanning a QR code once an account on Tencent’s digital bank WeBank is opened. WeChat has added a “digital yuan” option on its WeChat Pay page and a “payment with e-yuan” option on the “receipt and payment” page. Teaming up with WeChat means there are potentially more than 1 billion users who could use the digital currency.
#Fintech#CBDC#China#DFC
·yicaiglobal.com·
WeChat Enables E-Yuan Payments
BIS appoints Raphael Auer as Head of the Innovation Hub Eurosystem Centre
BIS appoints Raphael Auer as Head of the Innovation Hub Eurosystem Centre
"The Bank for International Settlements (BIS) today announced that Raphael Auer will join the BIS Innovation Hub (BISIH) team as the head of the upcoming Eurosystem Centre, expected to open in the first half of 2022. Mr Auer is currently a principal economist in the BIS' Monetary and Economic Department, working with the unit dedicated to Innovation and the Digital Economy."
#Fintech#CryptoAssets#CBDC#BIS#DFC
·bis.org·
BIS appoints Raphael Auer as Head of the Innovation Hub Eurosystem Centre
Central Bank Digital Currency: functional scope, pricing and controls
Central Bank Digital Currency: functional scope, pricing and controls
This European Central Bank (ECB) paper discusses success factors for CBDC and how to avoid the risk of crowding out. After examining ways to prevent excessive use as a store of value, the study emphasises the importance of the functional scope of CBDC for the payment functions of money. The paper also recalls the risks that use could be too low if functional scope, convenience or reachability are unattractive for users. Finding an adequate functional scope – neither too broad to crowd out private sector solutions, nor too narrow to be of limited use – is challenging in an industry with network effects, like payments. The role of the incentives offered to private sector service providers involved in distributing, using and processing CBDC (banks, wallet providers, merchants, payment processors, acquirers, etc.) is discussed, including fees and compensation.
#Fintech#CBDC#Eurozone#DFC
·ecb.europa.eu·
Central Bank Digital Currency: functional scope, pricing and controls
China central bank launches digital yuan wallet apps for Android, iOS
China central bank launches digital yuan wallet apps for Android, iOS
The People's Bank of China reportedly has released pilot versions of its digital yuan wallet app on Chinese Android and Apple mobile phone app stores in Shanghai. A notice in the "e-CNY (Pilot Version)" app said it is in a research and development pilot phase and is only available to selected users through supported institutions that provide e-CNY services, including major domestic banks.
#Fintech#CBDC#China#DFC
·reuters.com·
China central bank launches digital yuan wallet apps for Android, iOS
Boston Fed seeks project manager for CBDC development
Boston Fed seeks project manager for CBDC development
The Boston Fed is looking for a Project Management Director to lead its Project Hamilton work on a hypothetical general purpose central bank digital currency (CBDC) with the Massachusetts Institute of Technology Digital Currency Initiative. This research will assist the Fed in more deeply understanding technology tradeoffs among design options, and will result in the open source publication of software to support CBDC research. The new position will presumably report to Jim Cunha, Executive Vice President of Secure Payments and FinTech, who has worked at the Boston Fed since 1984.
#Fintech#CBDC#UnitedStates#DFC
·rb.wd5.myworkdayjobs.com·
Boston Fed seeks project manager for CBDC development
IDEMIA and ConsenSys to offer a new secure offline CBDC payment solution
IDEMIA and ConsenSys to offer a new secure offline CBDC payment solution
"IDEMIA and ConsenSys have joined forces to offer a truly inclusive Central Bank Digital Currency (CBDC) solution that can work with any consumer device: smartphones of course, but also feature phones, biometric payment cards, sim cards, wearables and even connected machines, making CBDC available to everyone."
#Fintech#CBDC#Offline#ConsenSys#DFC
·idemia.com·
IDEMIA and ConsenSys to offer a new secure offline CBDC payment solution
Off And On
Off And On
What all of this means is that payments should stay on when the grid goes off that life can go on. Not necessarily for buying houses or leasing planes, but at least for buying groceries and riding the bus. And this is achievable using the technology that we have at our disposal today: the cost-effective and proven technology of TEEs.
#Fintech#CBDC#Offline#DFC
·dgwbirch.substack.com·
Off And On
eNaira Shows That CBDCs Are Maturing
eNaira Shows That CBDCs Are Maturing
"eNaira has faded into the background in the cryptosphere. However, due to the reasons discussed below, it is one of the most significant developments of 2021, with ramifications well into 2022 and beyond."
#Fintech#CBDC#Africa#DFC
·forbes.com·
eNaira Shows That CBDCs Are Maturing
BOJ’s CBDC Pilot Project a Success
BOJ’s CBDC Pilot Project a Success

The Bank of Jamaica (BOJ), working with eCurrency Mint Inc., successfully completed its central bank digital currency (CBDC) proof of concept (PoC) and pilot work, and will begin a public rollout in Q1 2022. After a prototype was tested in the BOJ's Fintech Regulatory Sandbox, in May 2021 the National Commercial Bank (NCB) was brought onboard for further testing. On August 9-10 the BOJ minted $230 million of CBDC of which $1 million was distributed to BOJ staff for further internal testing.

On October 29, the BOJ distributed $5 million of CBDC to the NCB for an NCB-sponsored “Market on the Lawn” pilot event, for which 4 small merchants and 53 consumers were onboarded to conduct transactions between each other. The NCB will continue onboarding customers, plus two additional wallet providers will soon be able to order CBDC from the BOJ and distribute to their customers. Interoperability will be tested between customers of various participating wallet providers.

#Fintech#CBDC#Caribbean#DFC
·boj.org.jm·
BOJ’s CBDC Pilot Project a Success
Mexico Reportedly Rolling Out CBDCs in 2024
Mexico Reportedly Rolling Out CBDCs in 2024
The President of Mexico tweeted that El Banco de México will issue a central bank digital currency (#CBDC) by 2024, citing financial inclusion as one of the motives. However, there is no mention of it on the central bank website, although new incoming Governor Victoria Rodriguez Ceja reportedly told a Senate Commission that El Banco de México was analyzing CBDC.
#Fintech#CBDC#DFC
·twitter.com·
Mexico Reportedly Rolling Out CBDCs in 2024