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KAIME : Central Bank Digital Currency with Realistic and Modular Privacy
KAIME : Central Bank Digital Currency with Realistic and Modular Privacy
"In this study, while we offer a solution to the privacy conflict between the user and the regulatory agencies, we also provide a solution to the privacy conflict between the user and the banks. Our solution, KAIME has also a modular structure. The privacy of the sender and receiver can be hidden if desired. Compared to previous related research, security analysis and implementation of KAIME is substantially simpler because simple and well-known cryptographic methods are used."
#Fintech#CryptoAssets#Privacy#CBDC#DFC
·eprint.iacr.org·
KAIME : Central Bank Digital Currency with Realistic and Modular Privacy
US : Consumer Payment Behaviour Consistent with Early Pandemic
US : Consumer Payment Behaviour Consistent with Early Pandemic
The U.S. Federal Reserve's 2023 Findings from the Diary of Consumer Payment Choice show that cash payments declined to 18% of all payments in 2022 from 20% in 2021 (and 30% in 2016). During the same time frame, the credit cards share increased to 31% from 28% (31%). Debit cards have remained roughly stable (29% in 2022). The mobile payments share was less than 1%. Average store-of-value cash holdings of $418 in 2022 were little changed from 2021, but up significantly from the 2016 average of $173. https://www.frbsf.org/cash/publications/fed-notes/2023/may/2023-findings-from-the-diary-of-consumer-payment-choice/
#Fintech#Payments#Cash#UnitedStates#DFC
·cashessentials.org·
US : Consumer Payment Behaviour Consistent with Early Pandemic
OFS and AUGENTIC GmbH reveal the design of the offline "Smart Banknote CBDC"
OFS and AUGENTIC GmbH reveal the design of the offline "Smart Banknote CBDC"
"Orell Füssli Ltd. Security Printing and AUGENTIC GmbH announced their partnership on a “Smart Banknote CBDC” solution including trustwise.io´s Distributed Ledger Technology (DLT) a week ago. A smart banknote is a physical banknote that interacts with a CBDC solution and acts as a transitional device between traditional and CBDC based payment systems. A smart banknote can be used like a classic banknote; however, the owner can redeem his cold wallet (physical banknote) and transfer the note’s value to a digital wallet by scanning the QR code with the private key. Our smart banknote includes a public and a private key represented by QR codes of which the private one is sealed. When the cover of the private key is removed, the QR code scanned, the value of the banknote can be transferred to a digital wallet. Conceptually after this procedure, the smart banknote cannot be transferred anymore."
#Fintech#CBDC#SmartNotes#Offline#DFC
·ofs.ch·
OFS and AUGENTIC GmbH reveal the design of the offline "Smart Banknote CBDC"
One Way to Prevent an SVB-Style Collapse? Fed Bank Accounts
One Way to Prevent an SVB-Style Collapse? Fed Bank Accounts
"The Fed has raised several concerns about narrow banks. The main one is that in times of stress they’d be too attractive as a haven. Money could pour out of Treasury bills, high-quality bonds or even accounts at conventional banks, amplifying risks to the broader financial system. Narrow banks could also make it harder for the central bank to manage short-term interest rates. And because conventional banks could end up holding few deposits, they might do less lending, making loans more expensive and credit harder to get."
#Fintech#NarrowBanking#Stablecoins#UnitedStates#DFC
·bloomberg.com·
One Way to Prevent an SVB-Style Collapse? Fed Bank Accounts
The Safest Bank the Fed Won’t Sanction
The Safest Bank the Fed Won’t Sanction
"Whatever the reason for the Fed’s reluctance to permit TNB to get off the ground, it is sad to see financial policy makers turn down such an obvious boon to financial stability and efficiency, and slow walk it to regulatory death, despite what appear to be clear legal rights of TNB to serve its customers and the economy."
#Fintech#NarrowBanking#Stablecoins#UnitedStates#DFC
·chicagobooth.edu·
The Safest Bank the Fed Won’t Sanction
Digital marketplace for Jamaica's Jam-Dex CBDC
Digital marketplace for Jamaica's Jam-Dex CBDC
Jamaica's Ministry of Industry, Investment, and Commerce has confirmed the development of a digital marketplace for merchants and residents to interact using the country's central bank digital currency (CBDC). Its aim is to provide a platform for underserved merchants, who do not have access to processing debit and credit transactions, to exclusively use Jam-Dex as a means of exchange. The digital marketplace will also facilitate merchants advertising their products. Onboarding merchants has already started and the platform should be operational by the beginning of summer (2023).
#Fintech#CBDC#Jamaica#DFC
·jamaicaobserver.com·
Digital marketplace for Jamaica's Jam-Dex CBDC
Intelligent design: stablecoins (in)stability and collateral during market turbulence
Intelligent design: stablecoins (in)stability and collateral during market turbulence
"How does stablecoin design affect market behavior during turbulent periods? Stablecoins attempt to maintain a “stable” peg to the US dollar, but do so with widely varying structural designs. The spectacular collapse of the TerraUSD (UST) stablecoin and the linked Terra (LUNA) token in May 2022 precipitated a series of reactions across major stablecoins, with some experiencing a fall in value and others gaining value. Using a Baba, Engle, Kraft and Kroner (1990) (BEKK) model, we examine the reaction to this exogenous shock and find significant contagion effects from the UST collapse, likely partially due to herding behavior among traders. We test the varying reactions among stablecoins and find that stablecoin design differences affect the direction, magnitude, and duration of the response to shocks. We discuss the implications for stablecoin developers, exchanges, traders, and regulators."
#Fintech#CryptoAssets#Stablecoins#DFC
·jfin-swufe.springeropen.com·
Intelligent design: stablecoins (in)stability and collateral during market turbulence
CBDC: building trust to foster adoption
CBDC: building trust to foster adoption
Adoption of CBDCs can be fostered through multiple approaches. While the strategy may differ, two fundamental components should remain as the foundational pillars of CBDC launch: trust and transparency. The adoption of CBDC will rely on central banks’ ability to address privacy concerns effectively and ensure individual’s rights are protected. The issue of privacy surrounding CBDCs is closely tied to the public's trust in public institutions, which is why commercial banks could play a crucial role. As trusted partners of the public, commercial banks can help promote CBDC adoption by offering assurance regarding the safety and security of CBDC holding. Not limited to trusted partners, commercial banks will also have an active role in CBDC adoption. Finally, it is essential to consider both end-user and merchant perspectives when evaluating CBDC adoption. Merchant and public adoption are two sides of a coin, being interconnected and interdependent.
#Fintech#CBDC#DFC
·thepaypers.com·
CBDC: building trust to foster adoption
Samsung explores offline CBDC that works with Galaxy phones
Samsung explores offline CBDC that works with Galaxy phones
"Samsung said it has signed a memorandum of understanding with South Korea’s central bank to conduct technical research on a central bank digital currency. Payments could be made between devices through the use of near-field communication technology, which is built into smartphones to enable contactless payments, Samsung said."
#Fintech#CBDC#Offline#Japan#DFC
·cnbc.com·
Samsung explores offline CBDC that works with Galaxy phones
Ripple improves the capabilities of its CBDC platform
Ripple improves the capabilities of its CBDC platform
Ripple has enhanced its CBDC Platform launched in March 2022, that is based on the private ledger private version of the public, open-source XRP Ledger. The enhancements enable issuers to manage the full life cycle of their fiat based digital currency, from minting and distribution to redemption and destruction, taking advantage of the XRP Ledger’s built-in multi-signing capabilities. It's billed as a "full stack" platform in that it manages the full CBDC lifecycle, including the provision of end-user wallets. https://www.businesswire.com/news/home/20230518005115/en/Ripple-Launches-CBDC-Platform-for-the-Development-of-CBDCs-and-Stablecoins
#Fintech#CBDC#Ripple#DFC
·thepaypers.com·
Ripple improves the capabilities of its CBDC platform
NY Fed, MAS Verify CBDC Use for Cross-Border Payments
NY Fed, MAS Verify CBDC Use for Cross-Border Payments
According to a report published by New York Federal Reserve (NY Fed) and Monetary Authority of Singapore (MAS), wholesale central bank digital currency (CBDC) systems operating on different types of networks can be used for cross-border and cross-currency payments. The study, which used simulated CBDCs and hypothetical payments, found that cross-border transactions could be conducted across different distributed ledger (DLT) and hashed timelock contract (HTLC) technology stacks, with near real-time settlement finality.
#Fintech#CBDC#wCBDC#CrossBorder#Payments#UnitedStates#Singapore#DFC
·coindesk.com·
NY Fed, MAS Verify CBDC Use for Cross-Border Payments
Hong Kong Monetary Authority - Commencement of the e-HKD Pilot Programme
Hong Kong Monetary Authority - Commencement of the e-HKD Pilot Programme
The Hong Kong Monetary Authority (HKMA) today announced the commencement of the e-HKD central bank digital currency (CBDC) pilot programme. A total of 16 firms from the financial, payment and technology sectors have been selected to participate in the first round of pilots. The pilots will take deep dives into potential use cases in six categories, including full-fledged payments, programmable payments, offline payments, tokenised deposits, settlement of Web3 transactions and settlement of tokenised assets. https://www.hkma.gov.hk/media/eng/doc/key-information/press-release/2023/20230518e4a1.pdf
#Fintech#CBDC#HongKong#DFC
·hkma.gov.hk·
Hong Kong Monetary Authority - Commencement of the e-HKD Pilot Programme
A legal framework for the digital euro
A legal framework for the digital euro
The European Parliament published a study that assesses the European Central Bank's (ECB's) first three progress reports on the digital euro from a legal perspective. It looks into what key design choices proposed by the ECB reveal in terms of the legal qualification of the digital euro and discusses legal aspects of the infrastructure supporting it. Overall, the objective of ensuring a strong monetary anchor in the financial system should take centre stage. A simple and cash-like design of the digital euro would not only aid that objective, but also reduce legal risk.
#Fintech#CBDC#Eurozone#DFC
·europarl.europa.eu·
A legal framework for the digital euro
Ripple to demonstrate tokenization in HKMA e-HKD pilot program using new CBDC platform
Ripple to demonstrate tokenization in HKMA e-HKD pilot program using new CBDC platform
Ripple will reportedly participate in the Hong Kong Monetary Authority’s (HKMA’s) digital Hong Kong dollar (e-HKD) central bank digital currency (CBDC) pilot program by showcasing a real estate asset tokenization solution. Ripple will partner with Taiwan’s Fubon Bank and others to demonstrate equity release with tokenized assets using a retail version of the e-HKD CBDC. The pilot project will run on the new Ripple CBDC Platform, that uses a new private ledger with XRP Ledger technology and enhanced functionality, including offline transactions and non-smartphone use. It's the same platform that may be piloted in Bhutan, Montenegro and Palau.
#Fintech#CBDC#Ripple#HongKong#DFC
·cointelegraph.com·
Ripple to demonstrate tokenization in HKMA e-HKD pilot program using new CBDC platform
Perfinal and IDEMIA’s Partnership to Enable Secure and Reliable Offline Transactions
Perfinal and IDEMIA’s Partnership to Enable Secure and Reliable Offline Transactions
"Perfinal has partnered with leading payment solution provider IDEMIA, a global leader in offline CBDC wallet solutions, to offer joint solutions for central banks to launch and distribute CBDCs. This partnership represents an exciting step forward in the development of CBDCs, aligning with the European Central Bank’s guidelines for greater privacy and financial inclusion through offline transactions. The technical capabilities required for offline CBDCs demand a flexible account management system, and Perfinal’s partnership with IDEMIA’s offline wallet solution provides an optimal solution to these technical challenges. " https://perfinal.com
#Fintech#CBDC#Offline#IDEMIA#Perfinal#Vendor#DFC
·medium.com·
Perfinal and IDEMIA’s Partnership to Enable Secure and Reliable Offline Transactions
The MNB Student Safe mobile application has been renewed
The MNB Student Safe mobile application has been renewed
The Magyar Nemzeti Bank (MNB) and the Money Compass Foundation launched a new version of the Student Safe mobile app, to increase financial literacy and strengthen digital financial inclusion among 8 to 14 year-olds. The new app, operated by the MNB and involving commercial banks, is now able to handle real money in the form of an MNB-issued central bank digital currency (CBDC). By successfully completing quizzes children can collect "tallérs" that can be redeemed for webshop (eMAG) vouchers. In addition, the new app allows users to transfer funds to bank accounts, and make QR-code payments. Parents can also send their children forints or student tallérs. https://penziranytu.hu https://perfinal.com
#Fintech#CBDC#Hungary#Europe#DFC
·mnb.hu·
The MNB Student Safe mobile application has been renewed
Nigeria’s eNaira, One Year After
Nigeria’s eNaira, One Year After
"This IMF paper reflects on the first year of the eNaira—the first CBDC in Africa. Despite the laudable undisrupted operation for the first full year, the CBDC project has not yet moved beyond the initial wave of limited adoption. Network effects suggest the initial low adoption spell will require a coordinated policy drive to break it. The eNaira’s potential in financial inclusion requires a strategy to set the right relationship with mobile money, given the former’s potential to either complement or substitute the latter. Cost savings from integrating CBDC—as a bridge vehicle—in the remittance process may also be substantial."
#Fintech#CBDC#Nigeria#Africa#DFC
·imf.org·
Nigeria’s eNaira, One Year After
The digital euro: a solution seeking a problem?
The digital euro: a solution seeking a problem?
A Financial Times (FT) article documented rising public opposition to a digital euro, as the European Central Bank (ECB) struggles to communicate convincing arguments for the central bank digital currency (CBDC) project. The ECB says a digital euro would modernize European payments by giving people an electronic alternative to cash that is riskless and universally accepted. However, detractors don’t see any big market failures that require the public sector to step in, and given that the eurozone’s payment options are already reliable and innovative. There has also been CBDC pushback in other jurisdictions, most notably in the United States, where it has become a political hot potato on account of potential threats to privacy and self control.
#Fintech#CBDC#Eurozone#DFC
·ft.com·
The digital euro: a solution seeking a problem?
G-7 Finance Ministers Show Support for FSB, IMF Crypto Norms
G-7 Finance Ministers Show Support for FSB, IMF Crypto Norms
The Group of Seven (G-7) has signaled its commitment to implementing the forthcoming Financial Stability Board (FSB) crypto-asset regulatory norms and IMF central bank digital currency (CBDC) recommendations. The FSB is expected to finalize its high-level crypto-asset recommendations by July 2023. The first installments of the IMF  “Retail CBDC Handbook”, to be produced in close cooperation with and drawing from the inputs of experts and stakeholders including other international organizations, standard setters and national authorities, will be published by the October 2023 IMF/World Bank Annual Meetings. https://www.consilium.europa.eu/media/64307/g7-communique-20230513.pdf
#Fintech#CryptoAssets#CBDC#G7#FSB#IMF#Regulation#DFC
·coindesk.com·
G-7 Finance Ministers Show Support for FSB, IMF Crypto Norms
CBDCs: Pros and Cons - A Comprehensive List and Discussion
CBDCs: Pros and Cons - A Comprehensive List and Discussion
"Central bank digital currencies (CBDCs) have the potential to fundamentally alter the current monetary system. Potentially they could bring about a whole range of advantages compared to the status quo, yet they could also introduce a host of disadvantages. This text provides a comprehensive list of the pros and cons of CBDC along with a description of every single positive or negative outcome. Finally, it weighs the benefits and drawbacks of this new form of legal tender against each other. "
#Fintech#CBDC#DFC
·papers.ssrn.com·
CBDCs: Pros and Cons - A Comprehensive List and Discussion
CBDC and business cycle dynamics in a New Monetarist New Keynesian model
CBDC and business cycle dynamics in a New Monetarist New Keynesian model
The European Central Bank (ECB) published a paper on the impact of an interest-bearing central bank digital currency (CBDC) on the economy. It integrates a New Monetarist-type decentralized market that accounts for the means-of-exchange function of bank deposits and CBDC into a New Keynesian model with financial frictions. It concludes that the introduction of an interest-bearing CBDC does not impair monetary policy transmission. Also it stabilizes the liquidity premium, thereby affecting bank funding conditions and the opportunity costs of money, which dampens and smooths the reaction of investment and consumption to macroeconomic shocks.
#Fintech#CBDC#ECB#DFC
·ecb.europa.eu·
CBDC and business cycle dynamics in a New Monetarist New Keynesian model
Governor Ron DeSantis Signs Bill Prohibiting Use of Central Bank Digital Currencies in Florida – Bitcoin News
Governor Ron DeSantis Signs Bill Prohibiting Use of Central Bank Digital Currencies in Florida – Bitcoin News
"On Friday Florida’s governor Ron DeSantis signed legislation that bans the use of a central bank digital currency (CBDC) in the state. Following the bill SB 7054 being signed into law, Florida’s Uniform Commercial Code (UCC) now explicitly forbids the use of a federally adopted CBDC as money."
#Fintech#CBDC#Regulation#UnitedStates#DFC
·news.bitcoin.com·
Governor Ron DeSantis Signs Bill Prohibiting Use of Central Bank Digital Currencies in Florida – Bitcoin News
Cash And Car Keys Work Offline: This Means Digital Wallets Must Too
Cash And Car Keys Work Offline: This Means Digital Wallets Must Too
"Digital cash, just like digital car keys, has to work offline. That is, I need to be able to get into my car and drive off where there is no mobile signal and I need to be able to buy milk if the internet is down or if the power is out at the grocery store. Fortunately, we have the technology and Apple and Google are building with it."
#Fintech#CBDC#Offline#IoT#DFC
·forbes.com·
Cash And Car Keys Work Offline: This Means Digital Wallets Must Too
"Enabling Offline Payments in an Online World: Privacy Considerations"
"Enabling Offline Payments in an Online World: Privacy Considerations"
Lipis Advisors published a paper that explores potential enhanced privacy benefits of offline payment functionality. One key takeaway is that it is important that payment system operators consider how other facets of the system design (e.g., security, interoperability) interact with privacy and how these different aspects should be prioritized.
#Fintech#CBDC#Offline#Crunchfish#DFC
·lipisadvisors.com·
"Enabling Offline Payments in an Online World: Privacy Considerations"
BIS publishes guide on offline CBDC use
BIS publishes guide on offline CBDC use
The BIS Innovation Hub published a handbook on offline central bank digital currency (CBDC). It covers the complex matrix of issues including security, privacy, likely risks, the types of solution, their maturity and applicability, and operational factors, as well as objectives for resilience, inclusion, cash resemblance, accessibility and other desired attributes. The degree to which CBDCs will be provided or used offline will vary significantly by country, region, demographics and specific contexts, which will also influence the solutions chosen. https://www.bis.org/publ/othp64.htm
#Fintech#CBDC#Offline#BIS#DFC
·finextra.com·
BIS publishes guide on offline CBDC use
IMF Cautions Zimbabwe Against Plan for Gold-Backed Digital Money
IMF Cautions Zimbabwe Against Plan for Gold-Backed Digital Money
The IMF has reportedly called on the Reserve Bank of Zimbabwe to carefully consider the benefits of issuing a gold-backed digital currency versus the potential macroeconomic, financial stability, governance, legal and operational risks, plus the cost of forgone FX reserves. The IMF urged country authorities to rather use conventional measures to address economic challenges, such as maintaining a tight monetary-policy stance and accelerating the liberalization of the foreign-currency market.
#Fintech#CBDC#Gold#Zimbabwe#IMF#DFC
·bloomberg.com·
IMF Cautions Zimbabwe Against Plan for Gold-Backed Digital Money
Jonas Gross commentary on the ECB 3rd digital euro progress report
Jonas Gross commentary on the ECB 3rd digital euro progress report
"The European Central Bank published its third progress report on the investigation phase of a digital euro, a #CBDC for the euro area. The report discusses the Eurosystem’s perspectives and recommendations on the digital euro access, holdings and onboarding, distribution and functionalities"
#Fintech#CBDC#Eurozone#DFC
·linkedin.com·
Jonas Gross commentary on the ECB 3rd digital euro progress report