DFC

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New forms of digital money
New forms of digital money
The Bank of England published a discussion paper that set out its emerging thoughts on new forms of digital money, which include both systemic stablecoins and a UK central bank digital currency (CBDC). It builds on the Bank’s previous Discussion Paper on CBDC published in March 2020 and the Financial Policy Committee’s expectations for stablecoins set out in the December 2019 Financial Stability Report. Broadly speaking, the paper proposes that stablecoins should meet equivalent standards to those imposed on commercial banks.
#Fintech#CryptoAssets#CBDC#Stablecoins#DFC
·bankofengland.co.uk·
New forms of digital money
Shanghai to Hand Out $3 Million in Digital Yuan Lottery
Shanghai to Hand Out $3 Million in Digital Yuan Lottery
The city of Shanghai is reportedly going to hand out 19.25 million yuan in digital currency. The money will be distributed among local consumers through a lottery system. Lottery winners will receive a total of 350,000 digital red envelopes. Each one of them will be loaded with 55 units of the Chinese central bank digital currency (CBDC).
#Fintech#CryptoAssets#CBDC#China#DFC
·news.bitcoin.com·
Shanghai to Hand Out $3 Million in Digital Yuan Lottery
Exposure to Tether scheme now reaches as far as NBA
Exposure to Tether scheme now reaches as far as NBA
Regulators have waited too long to act on so-called stablecoins, to the point where exposure to schemes like that being run using Tether has infected the entire digital asset industry—and even beyond it. This is thanks to a network of exchanges which surround and rely on Tether and who perform a vital role in Tether’s ability to mint new USDT and get them to market, all while maintaining a paper-thin illusion that the so-called stablecoins are backed by anything at all. In return, the exchanges get to sell the apparently value-less USDT in exchange for BTC."
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·coingeek.com·
Exposure to Tether scheme now reaches as far as NBA
Africa's central banks are exploring digital currencies
Africa's central banks are exploring digital currencies
"Digitizing currencies is not an easy proposition, and it raises questions around accessibility, privacy and what architecture to use. Quartz spoke about these and more with Co-Pierre Georg, who is also a research economist with Deutsche Bundesbank, Germany’s central bank."
#Fintech#CryptoAssets#CBDC#DFC
·qz.com·
Africa's central banks are exploring digital currencies
Designing and delivering secure CBDC solutions | G+D
Designing and delivering secure CBDC solutions | G+D
Giesecke+Devrient's (G+D’s) hybrid-deployment Filia model of a value-based CBDC solution involves existing members of the currency cycle playing a vital role in. The creation and issuance of data files that represent monetary value take place in a highly secure offline environment at the central bank, while distribution is carried out by commercial banks or other financial service providers. Payment service providers can integrate Filia into their own offerings – as part of a larger payment ecosystem – to enable new business models, and to foster growth and innovation in an open system. Filia can be utilized through smartphones, smartcards, smartwatches, and other forms of digital wallets, without the need for a bank account, the disclosure of private data, or consumer fees. It also allows for secure offline consecutive offline payments.
#Fintech#CryptoAssets#CBDC#DFC
·gi-de.com·
Designing and delivering secure CBDC solutions | G+D
Introduction to Economics of Privacy
Introduction to Economics of Privacy
A Bank of Japan paper [sorry, it's only in Japanese] surveys the literature on the economics of privacy." The economics of privacy teaches that market mechanisms can address issues such as how to determine socially desirable levels of privacy protection and how to deal with privacy infringements caused by the "negative externalities" of personal information data. It's difficult to solve. This perception can give important implications when considering how to proceed with the utilization of data while giving a sense of security to people who use digital payment systems.
#Fintech#CBDC#Privacy#DFC
·boj.or.jp·
Introduction to Economics of Privacy
E-cedi: Bank of Ghana to pilot digital currency
E-cedi: Bank of Ghana to pilot digital currency
The Bank of Ghana is in the advanced stages of introducing a retail digital currency (CBDC). The e-cedi will go through three phases before it goes into circulation. The first phase, which is now underway, is focused on the design of the CBDC, and the second phase will look at implementation. In the final stage, a pilot would determine whether the digital currency will be feasible before it goes into circulation. https://www.youtube.com/watch?v=mJ6JggrtJyM
#Fintech#CryptoAssets#CBDC#DFC
·graphic.com.gh·
E-cedi: Bank of Ghana to pilot digital currency
ECB: Lack of Official Digital Currency Risks Loss of Control
ECB: Lack of Official Digital Currency Risks Loss of Control
A European Central Bank (ECB) report concluded that governments that don't offer central bank digital currencies (CBDCs) may face threats to their financial systems and monetary autonomy. Consumers and businesses in places that don’t have their own digital currency could end up being reliant on a small number of dominant payment-service providers, including foreign tech giants. That could affect the central bank’s ability to fulfill its mandate and act as a lender of last resort. https://www.ecb.europa.eu/pub/ire/html/ecb.ire202106~a058f84c61.en.html#toc18
#Fintech#CryptoAssets#CBDC#Eurozone#DFC
·bloomberg.com·
ECB: Lack of Official Digital Currency Risks Loss of Control
Beijing to give away over $6 million in latest digital yuan test
Beijing to give away over $6 million in latest digital yuan test
The Beijing Local Financial Supervision and Administration Bureau is going to give away 40 million yuan in China's latest central bank digital currency (CBDC) test. 200,000 red envelopes, containing 200 digital yuan each, will be given away to local residents via a lottery run through apps of the Bank of China and the Industrial and Commercial Bank of China. To date, China has conducted 10 digital yuan lottery campaigns across 5 cities, according to The Block's. Those campaigns started in October 2020, and a total of 230 million digital yuan has been given away. http://jrj.beijing.gov.cn/jrgzdt/202106/t20210601_2403630.html
#Fintech#CryptoAssets#CBDC#China#DFC
·theblockcrypto.com·
Beijing to give away over $6 million in latest digital yuan test
Thailand's Central Bank Taps German Payments Giant to Design CBDC Prototype
Thailand's Central Bank Taps German Payments Giant to Design CBDC Prototype
The Bank of Thailand (BoT) has reportedly hired German technology company Giesecke+Devrient (G+D) for a retail central bank digital currency (CBDC) proof of concept project. The BoT announced on April 2 that it had begun accepting public feedback on its retail CBDC with an end date of June 15. http://process3.gprocurement.go.th/egp2procmainWeb/jsp/procsearch.sch?servlet=gojsp&proc_id=ShowHTMLFile&processFlows=Procure&projectId=64047234808&templateType=W2&temp_Announ=A&temp_itemNo=0&seqNo=1
#Fintech#CryptoAssets#CBDC#DFC
·coindesk.com·
Thailand's Central Bank Taps German Payments Giant to Design CBDC Prototype
Stability After the Crash
Stability After the Crash
According to Coinmetrics, none of the major stablecoins became seriously unpegged during the May 19 crypto flash crash. As prices drop, investors often rush to trade their crypto-assets into stablecoins, while the liquidations can cause stablecoins being used as collateral to be sold. This sudden shift in supply and demand can potentially knock stablecoin prices from their $1 peg, and threaten their stability. Although I and some others observed some USD stablecoins below 90 cents on some trading screens, apparently none actually traded there.
#Fintech#CryptoAssets#Stablecoins#FlashCrash#DFC
·coinmetrics.substack.com·
Stability After the Crash
Can a Cryptocurrency Break the Buck?
Can a Cryptocurrency Break the Buck?
This is a great summary of the potential systemic risks around Tether by Timothy Massad, ex-Chairman of the US Commodity Futures Trading Commission. He calls for a strengthening of the regulation of crypto-assets generally and in particular stablecoins. He seems supportive of the Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act, introduced in Congress last December, that would require that stablecoins be issued by a bank and would impose certain standards.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·bloombergquint.com·
Can a Cryptocurrency Break the Buck?
Stablecoins Like Tether Should Face Regulators' Scrutiny
Stablecoins Like Tether Should Face Regulators' Scrutiny
This is a great summary of the potential systemic risks around Tether by Timothy Massad, ex-Chairman of the US Commodity Futures Trading Commission. He calls for a strengthening of the regulation of crypto-assets generally and in particular stablecoins. He seems supportive of the Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act, introduced in Congress last December, that would require that stablecoins be issued by a bank and would impose certain standards.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·bloomberg.com·
Stablecoins Like Tether Should Face Regulators' Scrutiny
Bank of Canada: Towards a Digital Canadian Dollar - If, How, When
Bank of Canada: Towards a Digital Canadian Dollar - If, How, When
Scott Hendry: "It’s been apparent for many years now that, with technology modernizing so many other aspects of our lives, the physical nature of currency should also evolve to meet the changing demands of businesses and consumers. Recognizing this, the Bank started looking at the digitization of money almost a decade ago to prepare for a day when the Government of Canada may take a decision to issue a CBDC."
#Fintech#CryptoAssets#CBDC#Canada#DFC
·cbpn.currencyresearch.com·
Bank of Canada: Towards a Digital Canadian Dollar - If, How, When
Bitcoin’s Volatility Spawns New Crypto Balance Sheet Alternative
Bitcoin’s Volatility Spawns New Crypto Balance Sheet Alternative
Circle announced that it will be offering investors the opportunity to deposit USDC and earn as much as 7% annually through high-yield accounts with locked-in terms ranging from one month to a year. The interest is paid out in USDC, generated by Circle lending the digital dollars to a network of institutional investors that are willing to pay an interest rate for access to additional capital. The service will launch imminently in the U.S. and Switzerland. The Gemini exchange offers a similar scheme called "Gemini Earn" based on Gemini Dollars (GUSD) that promises returns of up to 7.4% annually.
#Fintech#CryptoAssets#Stablecoins#USDC#Gemini#Circle#DFC
·bloomberg.com·
Bitcoin’s Volatility Spawns New Crypto Balance Sheet Alternative
What's Going on with Circle's USDC Attestation Reports?
What's Going on with Circle's USDC Attestation Reports?
It has been previously reported that the publication of Circle's USDC stablecoin attestation reports have become very tardy. However, JP Koning also notes that between February and March 2021, the reports have gotten a bit less transparent. Circle no longer discloses the precise amount of U.S. dollars it holds in custody. Whereas they used to say "US Dollars held in custody =..." in March they started saying "US Dollars held in custody accounts are at least equal or greater than the USDC tokens outstanding..." One possibility is that Circle is investing in assets that cannot be easily valued, and going down the same slippery slope as Tether.
#Fintech#CryptoAssets#Stablecoins#Circle#USDC#Tether#DFC
·twitter.com·
What's Going on with Circle's USDC Attestation Reports?
Bank of Mauritius Plans CBDC Pilot in 2021
Bank of Mauritius Plans CBDC Pilot in 2021
The Bank of Mauritius (BoM) is targeting a year-end rollout for the island nation’s central bank digital currency (CBDC) pilot. It is in the midst of finalizing its position papers and would publish “concrete examples” of its initiatives in the near future. The International Monetary Fund (IMF) has been helping the BoM with its tentative digital currency plans, including advising on possible CBDC designs. Governor Harvesh Seegolam said that while CBDCs come with their advantages, they aren’t likely to replace cash but rather complement the existing monetary system.
#Fintech#CryptoAssets#CBDC#DFC
·coindesk.com·
Bank of Mauritius Plans CBDC Pilot in 2021
Riksbank begins cooperation with external participants in e-krona pilot
Riksbank begins cooperation with external participants in e-krona pilot
The Sveriges Riksbank announced the next phase of its R3 Corda-based distributed ledger technology-based e-krona pilot. This phase will move on from having only simulated participants, to involving external actors (Handelsbanken and TietoEVRY. ) as participants in the test environment, making it possible for the Riksbank to evaluate the integration between the participants’ existing systems and the technical platform for the e-krona pilot. The Riksbank will, for instance, be testing an integration of the payment flows developed during the first year of the pilot with the participants’ internal systems.
#Fintech#CryptoAssets#CBDC#R3#Corda#DFC
·riksbank.se·
Riksbank begins cooperation with external participants in e-krona pilot
Kazakhstan Digital Tenge (CBDC) Pilot Project
Kazakhstan Digital Tenge (CBDC) Pilot Project

The National Bank of the Republic of Kazakhstan plans to conduct a comprehensive study of the benefits and risks of issuing retail central bank digital currency (CBDC). It will start with the definition of the tasks solved by the digital currency, the method of its emission and distribution, the technology used, the impact on monetary policy, financial stability and the payment ecosystem.

[December 2021:] The National Bank of the Republic of Kazakhstan published the results of the first phase of its digital tenge (DT) retail CBDC pilot project. The first phase included proof-of-concept (PoC) testing based on R3's Corda distributed ledger technology-based platform. The PoC tested basic DT life cycle scenarios, from emission/distribution to purchases and transfers. Also, potential DT users were surveyed and interviewed to clarify priorities and needs in the development of new payment instruments.

#Fintech#CryptoAssets#CBDC#DFC
·nationalbank.kz·
Kazakhstan Digital Tenge (CBDC) Pilot Project
A digital euro to meet the expectations of Europeans
A digital euro to meet the expectations of Europeans
"A digital euro can only be successful if it meets the needs and expectations of European citizens2. The outcome of the European Central Bank’s public consultation on a digital euro, published on the ECB website3, will therefore provide valuable input for the Eurosystem’s decision – this summer – on whether we should start a digital euro project. The consultation will also inform future work on the design of a digital euro, if a project is launched."
#Fintech#CryptoAssets#CBDC#Privacy#DFC
·suerf.org·
A digital euro to meet the expectations of Europeans
SARB commences feasibility study for a general-purpose retail central bank digital currency
SARB commences feasibility study for a general-purpose retail central bank digital currency

The South African Reserve Bank (SARB) has embarked on a study to investigate the feasibility, desirability and appropriateness of issuing retail central bank digital currency (CBDC) as electronic legal tender. The feasibility study will include practical experimentation across different emerging technology platforms, taking into account a variety of factors, including policy, regulatory, security and risk management implications. The CBDC feasibility study is expected to be concluded in 2022.

#Fintech#CryptoAssets#CBDC#DFC
·resbank.co.za·
SARB commences feasibility study for a general-purpose retail central bank digital currency
Bank Indonesia joins global central bank push for digital currencies
Bank Indonesia joins global central bank push for digital currencies
The Governor of the Bank Indonesia (BI) reportedly said that the central bank is planning to launch a digital rupiah and is assessing which platform it will use. BI is also examining how a central bank digital currency (CBDC) will help it meet its monetary policy and payment systems objectives, including by assessing the readiness of the financial infrastructure. The Governor said the rupiah will remain the only legally accepted currency for payment, and BI will regulate the digital rupiah the same way it regulates banknotes and card-based transactions.
#Fintech#CryptoAssets#CBDC#DFC
·reuters.com·
Bank Indonesia joins global central bank push for digital currencies
USDC Attestations Run Late, Raising Alarms in the Crypto Community
USDC Attestations Run Late, Raising Alarms in the Crypto Community
Centre is late in releasing its USDC reserves attestations, the last one posted on their website dating back to March when the stablecoin had a market cap of $11 billion. This fact and the sudden growth the crypto-asset experienced in the last few months (there are now almost $21 billion outstanding) is raising alarms about the delay of these documents (the March 31 report was published on May 24). There has not been a public disclosure of why the tardiness is happening, and the reports remain vague about how the reserves are invested: "held...at federally insured US depository institutions and in approved investments" with zero clarity as to what "approved investments" are.
#Fintech#CryptoAssets#Stablecoins#USDC#DFC
·news.bitcoin.com·
USDC Attestations Run Late, Raising Alarms in the Crypto Community
BC presents guidelines for the potential development of the real in digital format
BC presents guidelines for the potential development of the real in digital format

Banco Central do Brasil guidelines for the potential development of the digital real Banco Central do Brasil published its guidelines for the potential issuance of reatil central bank digital currency (CBDC). The project will focus on an unrenumerated digital real that will operate on a two-tier business model, with an eye towards cross-border interoperability and integration.

#Fintech#CryptoAssets#CBDC#DFC
·bcb.gov.br·
BC presents guidelines for the potential development of the real in digital format
A New Report From JPMorgan Shows Just How Big Tether Has Become
A New Report From JPMorgan Shows Just How Big Tether Has Become
Tether is now one of the biggest money market funds in the world, holding more commercial paper than companies like Amazon and Google. According to JP Morgan analysts, although Tether might prefer the simpler solution of holding their USDT reserves with US banks, they have been pushed into a corner because of their limited access to such banks caused by their reputation for shady behavior, including, in the past, misrepresenting the sufficiency and quality of those USDT reserves. The kind of big banks that could accommodate a material portion of these reserves, including JP Morgan themselves, would likely steer clear of Tether due to reputational risk concerns.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·bloomberg.com·
A New Report From JPMorgan Shows Just How Big Tether Has Become
US Fed Will Publish a Report On Central Bank Digital Currency In Summer
US Fed Will Publish a Report On Central Bank Digital Currency In Summer
The US Federal Reserve plans to publish this summer a discussion paper that will explore the implications of fast-evolving technology for digital payments, with a particular focus on the possibility of issuing a U.S. central bank digital currency (CBDC). The paper will complement Federal Reserve System research that is already underway.
#Fintech#CryptoAssets#CBDC#DFC
·federalreserve.gov·
US Fed Will Publish a Report On Central Bank Digital Currency In Summer