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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
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