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USDT's Endgame and Life After Tether
USDT's Endgame and Life After Tether
"USDTs look like real money to users because exchanges and arbitrageurs maintain a peg to the dollar – the price of every cryptocurrency is the same for USD as for USDT. However, USDTs come with a very important caveat: their apparent value relies exclusively on trust and hope that this peg will hold. There are no guarantees that USDT will be worth anything tomorrow – which is a pretty sweet deal for exchanges who keep the balances of their clients in USDT, instead of USD. If Tether collapses, it’s the users who will get shafted, not the exchanges."
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·tr0lly.com·
USDT's Endgame and Life After Tether
Tether is Setting a New Standard for Transparency?
Tether is Setting a New Standard for Transparency?
According to Tether’s General Counsel, Stuart Hoegner, the commercial paper held as USDT reserves are mostly investment grade, but with no independent verification of his statement. However, Tether’s terms of service says that if Tether is unable to raise the cash to meet USDT redemption requests, it can either delay redemption or redeem USDT by in-kind redemptions of securities and other assets held as reserves. So the liquidity or quality of reserve assets doesn't matter since Tether will never have any significant need for cash.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·stuarthoegner.medium.com·
Tether is Setting a New Standard for Transparency?
Tether’s smoke and mirrors
Tether’s smoke and mirrors
"Smoke and mirrors may maintain the peg for a while, but people won’t be fooled forever. If Tether is serious about delivering “unrivalled transparency”, it should publish the composition of its assets in sufficient detail to eliminate all doubts about their safety and liquidity. And if it wants the par peg to hold under all circumstances, it must significantly increase its capital. If it won’t do either of these, then eventually the mirror will crack, the peg will break and Tether will be doomed. "
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·coppolacomment.com·
Tether’s smoke and mirrors
ExtoPay Offline Wallet
ExtoPay Offline Wallet
"ExtoPay extends the reach of mobile payment, digital banking, and cross-border payment service providers in emerging markets to 1.5 B users who don't have mobile connectivity. ExtoPay combines the low cost and secure ExtoWallet Biometric Smart Cards provisioned with Distributed Ledger Technologies to support offline Bluetooth based card-to-card or card-to-phone payments. ExtoPay supports fiat, CBDC, and Cryptocurrency payments using a patent-pending Intermittent Network Architecture. This system addresses the recovery of funds due to lost or damaged cards and protects against counterfeit card attacks. "
#Fintech#CryptoAssets#CBDC#Offline#DFC
·extolab.com·
ExtoPay Offline Wallet
Terra’s 25-Fold Jump Shows Bet on Algorithmic Stablecoins
Terra’s 25-Fold Jump Shows Bet on Algorithmic Stablecoins
Terra is a three-year-old project from the South Korean developer Terraform Labs, built to support a basket of decentralized stablecoins. Demand has surged in cryptocurrency markets for Terra’s LUNA token, which works as part of an automatic balancing system that helps to keep prices for the stablecoins, well, stable.
#Fintech#CryptoAssets#Stablecoins#Terra#DFC
·coindesk.com·
Terra’s 25-Fold Jump Shows Bet on Algorithmic Stablecoins
Tether reserve disclosure leaves unanswered questions
Tether reserve disclosure leaves unanswered questions
According to Paul Amery (New Money Review): Permissible investment rules for US money transmitters vary state by state but typically allow them hold corporate bonds, currency, foreign government debt, asset-backed and mortgage-backed securities. US dollar money market funds, which closely resemble stablecoins in their objectives, operate according to more detailed and stringent reserve and disclosure obligations set by the Securities and Exchange Commission (SEC). Permissible investments are limited to cash, direct obligations of the US government, certain securities issued by US government instrumentalities with a remaining maturity date of 60 days or less, and securities that mature or are subject to a demand feature exercisable and payable within five business days.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·newmoneyreview.com·
Tether reserve disclosure leaves unanswered questions
Hong Kong Looks to Expand Cross-Border Tests of Digital Yuan
Hong Kong Looks to Expand Cross-Border Tests of Digital Yuan
The Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBOC) recently tested cross-border digital yuan (e-CNY) transactions, involving a PBOC-designated bank, as well as merchants and bank staff. Following up on that, the HKMA is “discussing and collaborating with the PBOC on the next phase of technical testing, including the feasibility of broadening and deepening the use of e-CNY for cross-boundary payments.
#Fintech#CryptoAssets#CBDC#China#DFC
·bloomberg.com·
Hong Kong Looks to Expand Cross-Border Tests of Digital Yuan
Diem Announces Partnership with Silvergate and Strategic Shift to the United States
Diem Announces Partnership with Silvergate and Strategic Shift to the United States
Facebook's Diem project is shifting its main operations from Switzerland to the United States, and withdrawing its application for a license from Switzerland's FINMA, as it is not required under the new model. Diem will partner with Caliafornia state-chartered Sivergate Bank who will become the exclusive issuer of Diem's USD stablecoins and will manage the USD reserve. And Diem Networks US will register as a money service business (MSB) with the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN).
#Fintech#CryptoAssets#Stablecoins#Facebook#DFC
·diem.com·
Diem Announces Partnership with Silvergate and Strategic Shift to the United States
Franklin Noll: Hybrid Banknotes Can Bridge Cash and Crypto
Franklin Noll: Hybrid Banknotes Can Bridge Cash and Crypto
It seems only logical that an ideal payment instrument would combine the advantages of banknotes and digital currencies. A hybrid banknote would use a universally accepted and robust payment technology – cash – to deliver the cutting-edge benefits of digital money. A hybrid banknote – for instance, a bill with a chip embedded – could routinely function as a banknote does currently, but have the ability to access an electronic network to transfer value.
#Fintech#CryptoAssets#CBDC#Cash#DFC
·coindesk.com·
Franklin Noll: Hybrid Banknotes Can Bridge Cash and Crypto
Tether as a Central Bank. Central banks routinely issue money
Tether as a Central Bank. Central banks routinely issue money
"What if Tether announced tomorrow that they don’t want to enforce convertibility anymore, and oh by the way, “we don’t really have a 1-to-1 reserve pool”? The company could keep issuing USDT as it sees fit, feeding the marketplace with enough liquidity to “keep it going”. If indeed all USDT holders consider they have good reasons to hold Tether, because it helps them trade, there’s is really no reason for them to dispose of it. A “Nixon shock” whereby Tether would announce it will not enforce the 1-to-1 parity anymore could be followed by a new rule of floating exchange rate. Would there be a fundamental problem with that?"
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·medium.com·
Tether as a Central Bank. Central banks routinely issue money
Exploring central bank digital currencies: SWIFT and Accenture publish joint paper
Exploring central bank digital currencies: SWIFT and Accenture publish joint paper
A joint paper from SWIFT and Accenture looks at the CBDC opportunities and challenges for international payments, sets out practical requirements for the adoption of CBDC at scale, and outlines how SWIFT can support the financial community as new solutions are developed. SWIFT is planning a host of trials over the next few months to test how its platform could interact with the cross-border use of CBDCs.
#Fintech#CryptoAssets#CBDC#CrossBorder#DFC
·swift.com·
Exploring central bank digital currencies: SWIFT and Accenture publish joint paper
Central Bank of Bahrain, Bank ABC and J.P. Morgan announce Digital Currency Settlement Collaboration
Central Bank of Bahrain, Bank ABC and J.P. Morgan announce Digital Currency Settlement Collaboration
The Central Bank of Bahrain (CBB) is collaborating with J P Morgan and Bank ABC in a pilot scheme to introduce instantaneous cross border payment solution leveraging state of the art technology and digital currency. Bank ABC and J.P. Morgan will pilot the transfer of funds from and to the Kingdom of Bahrain in US-Dollars for payments from buyers to suppliers. The CBB will act as a close partner in the pilot and going forward would look to extend the collaboration to central bank digital currencies (CBDCs).
#Fintech#CryptoAssets#CBDC#CrossBorder#Payments#DFC
·cbb.gov.bh·
Central Bank of Bahrain, Bank ABC and J.P. Morgan announce Digital Currency Settlement Collaboration
China’s Much-Hyped Digital Yuan Fails to Impress Early Users
China’s Much-Hyped Digital Yuan Fails to Impress Early Users
Shenzhen digital yuan trial participants interviewed by Bloomberg showed little interest in switching from AliPay or TenPay, some balking at the possibility a digital yuan might give authorities easier access to real-time data on their financial lives. Some merchants may also be wary of their transactions flowing directly into a government database to help police tax collection compliance. The People's Bank of China has tried to quell those concerns by making the digital yuan free to use for merchants and by pledging that most payments will remain anonymous.
#Fintech#CryptoAssets#CBDC#China#DFC
·bloomberg.com·
China’s Much-Hyped Digital Yuan Fails to Impress Early Users
Bank of Israel opens public consultation on digital shekel
Bank of Israel opens public consultation on digital shekel
The Bank of Israel has decided to accelerate its research and preparations for a possible future launch of a digital currency. A steering committee set up by the bank has issued a report outling the potential benefits, a draft model and issues to examine, accompanied by a public call for responses. The draft model envisages a two-tier framework in which the central bank provides digital shekels to private sector payments providers who would then act as the interface to the general public. https://www.boi.org.il/en/NewsAndPublications/PressReleases/Pages/11-5-21.aspx
#Fintech#CryptoAssets#CBDC#DFC
·finextra.com·
Bank of Israel opens public consultation on digital shekel
China's Digital Yuan Smart Card to Feature Biometrics and Fingerprint Scanning
China's Digital Yuan Smart Card to Feature Biometrics and Fingerprint Scanning
A new smart card that features biometrics specifically designed to work with the People's Bank of China (PBOC) digital currency/ electronic payment (DC/EP) central bank digital currency (CBDC), is reportedly being created. Smart card maker Chutian Dragon is reportedly working with IDEX Biometrics, a Norwegian provider of advanced fingerprint identification and authentication solutions, on a new card-based DC/EP digital wallet solution for the DC/EP.
#Fintech#CryptoAssets#CBDC#China#Biometric#DFC
·news.bitcoin.com·
China's Digital Yuan Smart Card to Feature Biometrics and Fingerprint Scanning
Central Bank of Azerbaijan and VISA sign strategic cooperation agreement
Central Bank of Azerbaijan and VISA sign strategic cooperation agreement
The Central Bank of Azerbaijan and VISA signed an agreement on strategic cooperation to expand digital payments in Azerbaijan. The new strategic agreement will accelerate the development of non-cash payments in the Azerbaijani market, the introduction of innovative payment solutions, as well as through mobile devices, as well as the implementation of initiatives to expand financial literacy and inclusiveness.
#Fintech#Payments#CBDC#DFC
·cbar.az·
Central Bank of Azerbaijan and VISA sign strategic cooperation agreement
A nickel is worth more than a nickel
A nickel is worth more than a nickel
"Having just emerged from the fiasco of last year's coin shortage (which I wrote about here and here), the U.S. Mint has a new problem on its hands. The melt value of the nickel, or five cent coin, has suddenly moved higher than the coin's face value."
#Fintech#Cash#CBDC#DFC
·jpkoning.blogspot.com·
A nickel is worth more than a nickel
Federal Reserve proposes guidelines for what firms qualify for Fed accounts, payments services
Federal Reserve proposes guidelines for what firms qualify for Fed accounts, payments services
The U.S. Federal Reserve proposed guidelines for what sorts of financial institutions can have access to accounts at the central bank and its related payment services. "With technology driving rapid change in the payments landscape, the proposed Account Access Guidelines would ensure requests for access to the Federal Reserve payments system from novel institutions are evaluated in a consistent and transparent manner that promotes a safe, efficient, inclusive, and innovative payment system, consumer protection, and the safety and soundness of the banking system."
#Fintech#CryptoAssets#Stablecoins#DigitalBanking#Regulation#DFC
·federalreserve.gov·
Federal Reserve proposes guidelines for what firms qualify for Fed accounts, payments services
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.
#Fintech#CryptoAssets#CBDC#DFC
·nationalbank.kz·
Kazakhstan Digital Tenge (CBDC) Pilot Project
FEI Stablecoin Hits Target for First Time, 1 Month After Launch
FEI Stablecoin Hits Target for First Time, 1 Month After Launch
"It took a month and a day, but the FEI stablecoin has finally hit its target price of $1. Since its debut on April 3, FEI has mostly traded below its goal of parity with the U.S. dollar. From April 7 to April 20, it stayed below $0.80, more than 20% off its peg. Things started to turn around on April 20, when the price began to rise toward the goal. Tuesday morning, FEI finally hit $1. It remains to be seen if FEI can hold this price."
#Fintech#CryptoAssets#Stablecoins#DFC
·coindesk.com·
FEI Stablecoin Hits Target for First Time, 1 Month After Launch
Digital Dollar Project to Launch Pilots to Explore CBDC Designs and Uses
Digital Dollar Project to Launch Pilots to Explore CBDC Designs and Uses
The Digital Dollar Project (DDP) will launch at least five pilot programs over the next 12 months with interested stakeholders and DDP participants to measure the value of and inform the future design of a U.S. central bank digital currency (CBDC), or “digital dollar.” The selection process is already underway, with the first three to be announced within the next two months. The DDP intends to make its CBDC test ground transparent and accessible to all stakeholders, public and private.
#Fintech#CryptoAssets#CBDC#DFC
·newsroom.accenture.com·
Digital Dollar Project to Launch Pilots to Explore CBDC Designs and Uses
Bank runs and central bank digital currency
Bank runs and central bank digital currency
This historical study shows that the bank run risk associated with central bank digital currency (CBDC) is quite real, but it can be mitigated with holding limits. The study looked back to the Great Depression of 1930-1931, when French savers had a safe alternative to banks in the form of government-backed savings institutions (caisses d’épargne ordinaires, or CEOs). CEOs were not allowed to lend nor to provide payment services - they were effectively a source of funds for the government. Interest rates paid on CEO deposits were regularly higher than those paid by commercial banks to their depositors, and perversely, in March 1931, the limits on CEO deposits was increased from 12,000 to 20,000 francs for individuals and 50,000 to 100,000 for firms. Not surprisingly there were bank runs that the study suggests explaned one-third of the drop in real GDP in 1930-31.
#Fintech#CryptoAssets#CBDC#DFC
·voxeu.org·
Bank runs and central bank digital currency