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Is Tether a Black Swan?
Is Tether a Black Swan?
A Tether confidence crisis would likely result in a black swan event and a re-shuffling of the market. While there’s a chance that large players would counteract the crisis by buying back large amounts of USDT to restore the peg, or by successfully reassuring the market that all USDT can be redeemed at par, there’s no way to be sure that this will happen, unless you put a whole lot of trust in Tether and its affiliates.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·muellerberndt.medium.com·
Is Tether a Black Swan?
Crypto's Weimar
Crypto's Weimar
A cryptocurrency has just re-enacted the Weimar hyperinflation. On June 17, 2021, the price of the cryptocurrency TITAN crashed to zero, and its related stablecoin IRON fell off its USD peg, trading as low as 69 cents to the dollar. It was a sudden and dramatic collapse that left investors shocked and bewildered. It was a speculative attack on the IRON stablecoin's peg, aided and abetted by panic selling (which was no doubt what the speculators hoped for).. And it succeeded, because the peg relied on a fundamentally flawed mechanism.
#Fintech#CryptoAssets#Stablecoins#DFC
·coppolacomment.com·
Crypto's Weimar
How To Keep The Digital Dollar Democratic: A ‘Treasury Dollar Bill’ / ‘Treasury Direct’ Plan
How To Keep The Digital Dollar Democratic: A ‘Treasury Dollar Bill’ / ‘Treasury Direct’ Plan
In March 2020, US House Democrats drafted plans to legislate into existence a digital dollar, along with a system of digital wallets. The plan Robert Hockett has been pushing can be instituted by municipal, state, or national authorities, and at the national level can be administered either by Fed or by Treasury. It is the latter – the Treasury – version that he emphasizes here, because it already has half of the requisite digital architecture in place. Treasury has a universal account system – ‘Treasury Direct’ – available to all citizens and legal US residents. It would be easy for Treasury to issue a new Fed ‘dollar bill’ equivalent – what Hockett calls ‘Treasury Dollar Bills’ – receivable into these accounts, then either facilitate easy convertibility into Fed dollar bills or – better yet – declare them legal tender as well. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3599419
#Fintech#CryptoAssets#CBDC#DFC
·forbes.com·
How To Keep The Digital Dollar Democratic: A ‘Treasury Dollar Bill’ / ‘Treasury Direct’ Plan
Nigeria could launch pilot digital currency by year-end - central bank
Nigeria could launch pilot digital currency by year-end - central bank
The Central Bank of Nigeria is reportedly preparing to pilot a central bank digital currency (CBDC) by as early as the end of this year. The central bank's director of information technology Rakiya Mohammed said the project had been in the works for two years, and more announcements were likely in the coming weeks.
#Fintech#CryptoAssets#CBDC#DFC
·reuters.com·
Nigeria could launch pilot digital currency by year-end - central bank
Over 3,000 ATMs in Beijing can now convert digital yuan into cash
Over 3,000 ATMs in Beijing can now convert digital yuan into cash
The Beijing branch of the Industrial and Commercial Bank of China has reportedly become the first bank to fully enable the digital yuan exchange in the Chinese capital city by setting up more than 3,000 digital currency-compatible ATMs. The Agricultural Bank of China (ABC), another major bank involved in China’s CBDC tests, has also deployed more than 10 ATMs in the Wangfujing area, a major shopping street in Beijing.
#Fintech#CryptoAssets#CBDC#DFC
·cointelegraph.com·
Over 3,000 ATMs in Beijing can now convert digital yuan into cash
Why a Digital Euro should be Online-first and Bearer-based
Why a Digital Euro should be Online-first and Bearer-based
"We argue that operating a bearer-based payment system to complement an account-based CBDC in order to gain offline and privacy features is not a good trade-off. Adding permanent, regular offline capabilities via the bearer-based payment instrument constantly exposes the CBDC to the severe issues inherent in offline-capable payment systems. Instead, the offline mode of operation should be restricted to scenarios where it is actually required, which mitigates the risks."
#Fintech#CryptoAssets#CBDC#Offline#GNUTaler#DFC
·taler.net·
Why a Digital Euro should be Online-first and Bearer-based
Central Bank Digital Currency: An update on the Bank of England’s work - speech by Tom Mutton | Bank of England
Central Bank Digital Currency: An update on the Bank of England’s work - speech by Tom Mutton | Bank of England
Tom Mutton shares the Bank of England's latest thinking on central bank digital currencies (CBDCs). He looks into what they've learned so far, and how they are setting up their work for the future. He explains some of the principles that are guiding the Bank's work, and how they're approaching some of the big debates on CBDC."
#Fintech#CryptoAssets#CBDC#UnitedKingdom#DFC
·bankofengland.co.uk·
Central Bank Digital Currency: An update on the Bank of England’s work - speech by Tom Mutton | Bank of England
The Big Difference Between a Digital Dollar and a CBDC
The Big Difference Between a Digital Dollar and a CBDC
"If transactional privacy were to be seen as an important design consideration in a future digital money, one could imagine a government crypto-dollar that users hold in digital wallets, like they hold their Bitcoin, that can be passed between two people without it showing up on any kind of centralized ledger."
#Fintech#CryptoAssets#CBDC#DFC
·bloomberg.com·
The Big Difference Between a Digital Dollar and a CBDC
AFIN Collaborates with R3 to Drive Central Bank Digital Currency Innovation
AFIN Collaborates with R3 to Drive Central Bank Digital Currency Innovation
The ASEAN Financial Innovation Network (AFIN), a not-for-profit entity jointly formed by the Monetary Authority of Singapore (MAS), the International Finance Corporation (IFC), and the ASEAN Bankers Association, has partnered with R3 to enable banks and FinTechs to build and test central bank digital currency (CBDC) applications. R3 Sandbox for Digital Currencies is underpinned by Corda, and provides an environment for central banks, commercial banks, exchanges, payment providers, FinTechs and more to collaborate and evaluate CBDC use cases, as well as to learn, transact, and test roll-out strategies. https://www.r3.com/digital-currency-sandbox/
#Fintech#CryptoAssets#CBDC#Corda#DFC
·apixplatform.com·
AFIN Collaborates with R3 to Drive Central Bank Digital Currency Innovation
Court Denies SEC's Request For Documents Relating To Ripple's Lobbying Efforts
Court Denies SEC's Request For Documents Relating To Ripple's Lobbying Efforts
Judge Sarah Netburn of the District Court of New York has denied the US Securities and Exchange Commission's (SEC's) request for documents related to Ripple's lobbying efforts, stating that Ripple's lobbying efforts are not relevant in the case. However, the Judge approved the SEC's request to extend the pre-trial discovery phase by two months, to have more time to respond to Ripple's earlier motion compelling the SEC to turn over the internal BTC, ETH, and XRP documents. In other words, if no settlement is reached soon, the case is likely to drag on to early 2022. The SEC launched its action against Ripple and two of its executives in December 2020, alleging that they raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·bitcoinexchangeguide.com·
Court Denies SEC's Request For Documents Relating To Ripple's Lobbying Efforts
Cash use plunges during pandemic
Cash use plunges during pandemic
The Covid-19 pandemic has accelerated the decline of cash, with the volume of UK payments made using notes and coins plunging by 35 per cent in 2020 compared with the previous year. Annual payments data from UK Finance, the banking trade body, showed a corresponding rise in contactless payments, online transactions and the use of mobile “wallet” apps that store bank and card details.
#Fintech#Cash#ContactLessPayment#CBDC#DFC
·ft.com·
Cash use plunges during pandemic
The Tether Scandal: The Biggest Threat To The Crypto-Ecosystem
The Tether Scandal: The Biggest Threat To The Crypto-Ecosystem
"This isn’t just a story about a tiny fraudulent company. As I’m writing this, Tether is now valued at nearly $63 billion, which would rank it amongst the largest financial crimes in history. It’s a ticking time bomb, and this article will provide a quality summary of why Tether is a systemic risk you shouldn’t overlook, or ignore."
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·cryptowhale.medium.com·
The Tether Scandal: The Biggest Threat To The Crypto-Ecosystem
Crypto Accounting Is Changing – How Proof Of Reserves Could Improve Crypto Reporting
Crypto Accounting Is Changing – How Proof Of Reserves Could Improve Crypto Reporting
How can crypto custodians, crypto trading exchanges, and (ultimately) crypto banking institutions prove to external parties that reserves are indeed what they say they are? This is a pivotal question that continues to come to the surface, with a potential solution recently put forward; Proof of Reserves (PoR).
#Fintech#CryptoAssets#Stablecoins#Accounting#DFC
·forbes.com·
Crypto Accounting Is Changing – How Proof Of Reserves Could Improve Crypto Reporting
Details about the digital yuan wallet officially disclosed
Details about the digital yuan wallet officially disclosed
The People’s Bank of China (PBOC) revealed the holding and transaction limit structures being applied to the wallets currently being used in its eCNY central bank digital currency (CBDC) pilots. There are anonymous wallets that can be registered with only a mobile phone number, with maximum holding limits of 10,000 yuan, single transaction limits of 2,000 yuan, and daily cumulative payment limits of 5,000 yuan. And then there are less anonymous wallets with holding limits of 500,000 yuan, single transaction limits of 50,0000 yuan, and daily cumulative payment limits of 100,000 yuan, requiring that the users link the wallets to a bank account and meet full know-your-customer (KYC) requirements. Also users can open sub-wallets to limit payments, set up conditional payments, and control information sharing. https://finance.sina.com.cn/meeting/2021-06-11/doc-ikqciyzi9071612.shtml
#Fintech#CryptoAssets#CBDC#China#DFC
·finance.sina.com.cn·
Details about the digital yuan wallet officially disclosed
How Big is Tether?
How Big is Tether?
"Tether is very nearly the same size as the 25th largest mutual fund or ETF. At their average rate of printing for 2021 it will take approximately 20 days until Tether would be larger than entities on this list."
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·bennetttomlin.medium.com·
How Big is Tether?
CBDCs beyond borders: results from a survey of central banks
CBDCs beyond borders: results from a survey of central banks
This Bank for International Settlements (BIS) paper explores initial thinking on the cross-border use of central bank digital currency (CBDC) based on a survey of 50 central banks in the first quarter of 2021. While most central banks have yet to take a firm decision on issuing a CBDC, the survey responses show a tentative inclination towards allowing use of a future CBDC by tourists and other non-residents domestically. They have a cautious approach to allowing use of a CBDC beyond their own jurisdiction. Concerns about the economic and monetary implications of cross-border CBDC use and about private sector global stablecoins are taken seriously. At the wholesale level, 28% of surveyed central banks are considering options to make CBDCs interoperable by forming multi-CBDC arrangements. This involves arrangements that enhance compatibility, interlink or even integrate multiple CBDCs into a single payments system. Finally, almost 14% of respondents are considering an active role for the central bank in FX conversion.
#Fintech#CryptoAssets#CBDC#CrossBorder#DFC
·bis.org·
CBDCs beyond borders: results from a survey of central banks
CBN to launch own digital currency by year end: Official
CBN to launch own digital currency by year end: Official
The Central Bank of Nigeria (CBN) is reportedly planning to launch a central bank digital currency (CBDC) by the end of 2021. According to Rakiya Mohammed, the central bank’s IT specialist, the CBN has been exploring the technology for the last two years and has made tremendous progress. One of the reasons the CBN is exploring CBDC is to make remittances travel easier from abroad to Nigeria.
#Fintech#CryptoAssets#CBDC#DFC
·gazettengr.com·
CBN to launch own digital currency by year end: Official
IMF sees legal, economic issues with El Salvador bitcoin move
IMF sees legal, economic issues with El Salvador bitcoin move
International Monetary Fund (IMF) spokesman Gerry Rice reportedly said Fund staff will meet later on Thursday (June 10) with El Salvador President Nayib Bukele to discuss the recently passed bitcoin law that gives bitcoin legal tender status in the country. Rice reportedly said “adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis.” El Salvador is also in discussions with the IMF seeking a near $1 billion program.
#Fintech#CryptoAssets#CBDC#Bitcoin#LegalTender#DFC
·reuters.com·
IMF sees legal, economic issues with El Salvador bitcoin move
BIS, Swiss National Bank and Bank of France to experiment with cross-border wCBDC
BIS, Swiss National Bank and Bank of France to experiment with cross-border wCBDC
The Bank for International Settlements (BIS) Innovation Hub, Bank of France and Swiss National Bank launched Project Jura that, together with a private sector consortium led by Accenture, will conduct an experiment using wholesale central bank digital currency (wCBDC) for cross-border settlement on a distributed ledger technology (DLT) platform. The private sector consortium includes Credit Suisse, Natixis, R3, SIX Digital Exchange and UBS. It will involve the exchange of financial instruments against a euro wCBDC through a delivery versus payment (DvP) settlement mechanism and the exchange of a euro wCBDC against a Swiss franc wCBDC through a payment versus payment (PvP) settlement mechanism. These transactions will be settled between banks domiciled in France and in Switzerland, respectively.
#Fintech#Blockchain#wCBDC#CBDC#Settlement#Eurozone#France#DFC
·bis.org·
BIS, Swiss National Bank and Bank of France to experiment with cross-border wCBDC
Cambodia's Serey clarifies: “Bakong is not a digital currency”
Cambodia's Serey clarifies: “Bakong is not a digital currency”
"Chea Serey, assistant governor and director general of the National Bank of Cambodia (NBC) was adamant to clarify that although the system is built on DLT, it is not a central bank digital currency (CBDC) that some may be quick to assume. Instead, the platform augments the existing Fast and Secure Transfer (FAST), real-time retail payment system and Cambodian Shared Switch (CSS) that facilitate mainly interbank transactions among commercial banks and MFIs. "
#Fintech#CryptoAssets#CBDC#Cambodia#DFC
·radio.finance·
Cambodia's Serey clarifies: “Bakong is not a digital currency”
Central Bank Digital Currencies and a Euro for the Future
Central Bank Digital Currencies and a Euro for the Future
The European Blockchain Observatory and Forum (EUBOF) published a report identifying and evaluating eight alternative design architectures for the digital euro against the core principles and requirements set by the ECB. It considers how the digital euro will differ based on whether it will account-based or token-based, or whether it's implemented atop existing eurozone-wide payment rails or atop novel technological architectures, such as blockchain. The paper also explores whether a digital euro should be exclusively coordinated by the central bank or distributed and managed in collaboration with Europe's commercial banks and other financial institutions. It addresses interoperability and programmability features, regulatory aspects and end-user experience, along with potential financial stability implications.
#Fintech#CryptoAssets#CBDC#DFC
·eublockchainforum.eu·
Central Bank Digital Currencies and a Euro for the Future
Central bank digital currency: the quest for minimally invasive technology
Central bank digital currency: the quest for minimally invasive technology
A Bank for International Settlements paper discusses the range of proposed central bank digital currency (CBDC) architectures, how they could complement existing payment options, and what they imply for the financial system and the central bank of the future. It sets out the requirements for a "minimally invasive" CBDC design – one that upgrades money to current needs without disrupting the proven two-tier architecture of the monetary system, which involves both the private and public sectors. It finds that technological developments inspired by popular cryptocurrency systems – based on anonymity and lacking a central authority – do not meet the requirements for a retail CBDC. Instead, digital banknotes that run on "intermediated" or "hybrid" CBDC architectures show promise.
#Fintech#CryptoAssets#CBDC#DFC
·bis.org·
Central bank digital currency: the quest for minimally invasive technology
Future-proofing Hong Kong for Central Bank Digital Currencies
Future-proofing Hong Kong for Central Bank Digital Currencies
The Hong Kong Monetary Authority (HKMA) will strengthen its research work to increase Hong Kong’s readiness in issuing CBDCs at both wholesale and retail levels. In addition to the continued effort on wholesale CBDCs, the HKMA has been working with the Bank for International Settlements (BIS) Innovation Hub Hong Kong Centre to research retail CBDCs and will begin a study on e-HKD to understand its use cases, benefits, and related risks. The HKMA will also continue to collaborate with the People’s Bank of China in supporting the technical testing of e-CNY in Hong Kong with a view to providing a convenient means of cross-boundary payments for both domestic and mainland residents.
#Fintech#CryptoAssets#CBDC#DFC
·hkma.gov.hk·
Future-proofing Hong Kong for Central Bank Digital Currencies
Proceed with caution on central bank digital currency
Proceed with caution on central bank digital currency
"An oft-cited reason to create a digital dollar — preventing China’s digital yuan from emerging as an alternative reserve currency — seems overblown. Beijing’s controls on capital flows make the yuan unattractive as a store of value and will probably prevent the yuan from displacing the dollar."
#Fintech#CryptoAssets#CBDC#DFC
·washingtonpost.com·
Proceed with caution on central bank digital currency
Broadening Narrow Money: Monetary Policy with a Central Bank Digital Currency
Broadening Narrow Money: Monetary Policy with a Central Bank Digital Currency
This paper jointly written by Bank of England and Bank for International Settlements staff, discusses central bank digital currency (CBDC) and its potential impact on the monetary transmission mechanism. It first offers a general definition of CBDC which should make the concept accessible to a wide range of economists and policy practitioners. It then investigates how CBDC could affect the various stages of transmission, from markets for central bank money to the real economy. It concludes that monetary policy would be able to operate much as it does now, by varying the price or quantity of central bank money. Transmission may even be strengthened for a given change in policy instruments.
#Fintech#CryptoAssets#CBDC#DFC
·ijcb.org·
Broadening Narrow Money: Monetary Policy with a Central Bank Digital Currency
Responses to the Bank of England’s March 2020 Discussion Paper on CBDC
Responses to the Bank of England’s March 2020 Discussion Paper on CBDC
The Bank of England published the feedback it received on the "Central Bank Digital Currency: Opportunities, Challenges and Design" discussion paper that was published in March 2020. In short, the feedback is encouraging the Bank to continue examining the case for a CBDC. But at the same time, the it received clear feedback that the use case for a CBDC, which might justify its introduction, needed further research, refinement, and articulation, to inform a comprehensive assessment of the pros and cons of what would be a major decision. Additionally, some respondents expressed doubt that a CBDC was needed at all, given they considered that the intended benefits could be achieved through other forms of payments innovation.
#Fintech#CryptoAssets#CBDC#DFC
·bankofengland.co.uk·
Responses to the Bank of England’s March 2020 Discussion Paper on CBDC