DFC

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Decentralized FLOAT Stablecoin will Complement RAI and FEI Economies
Decentralized FLOAT Stablecoin will Complement RAI and FEI Economies
The primary purpose of using a stablecoin is to achieve a peg to a fiat currency, usually the U.S. dollar. However, "non-pegged" stablecoins aren't pegged to any fiat currency - their values float and change over time. Non-pegged stablecoins aim to have low short term volatility, allowing them to be practically used as a unit of account. However, over the long-term their values change according to their own demand and the demand for the underlying crypto-assets. Ampleforth, which was launched in June 2019, has been followed by Float (launched on February 5, 2021), Rai (February 17), and Fei (March 22).
#Fintech#CryptoAssets#Stablecoins#Ampleforth#DFC
·beincrypto.com·
Decentralized FLOAT Stablecoin will Complement RAI and FEI Economies
Stability, Elasticity, and Reflexivity: A Deep Dive into Algorithmic Stablecoins
Stability, Elasticity, and Reflexivity: A Deep Dive into Algorithmic Stablecoins
"Can an algorithmic stablecoin truly achieve long-term viability? Will algorithmic stablecoins always be subject to extreme expansionary and contractionary cycles? Which vision of an algorithmic stablecoin is more compelling: a simple rebasing model or a multi-token “seigniorage” system (or something else entirely)?"
#Fintech#CryptoAssets#Stablecoins#Ampleforth#DFC
·mechanism.capital·
Stability, Elasticity, and Reflexivity: A Deep Dive into Algorithmic Stablecoins
What is Sweetcoin? | history, roadmap, usage, team, supply
What is Sweetcoin? | history, roadmap, usage, team, supply
Sweetcoin is an "rewards"-based is a token designed to return profit users with cash back from using the Sweetbridge platform. Sweetcoin's intended uses are three-fold: to borrow against the net present value of the coin; manage the token to ensure against the asset's devaluation; stake the token as a network operation participant. Sweetbridge describes the Sweetcoin discount token as "the cornerstone of the Sweetbridge ecosystem". Sweetcoin’s value comes directly from its ability to grant monthly discounts that grow as the revenue in the Sweetbridge network grows, according to the project. The "rewards" are generated for users by locking a minimum amount of the Sweetcoin token in a wallet from month to month.
#Fintech#CryptoAssets#Stablecoins#DFC
·messari.io·
What is Sweetcoin? | history, roadmap, usage, team, supply
Bank of Thailand to begin central bank digital currency tests in 2022
Bank of Thailand to begin central bank digital currency tests in 2022
The Bank of Thailand has set its agenda for a retail central bank digital currency (CBDC) with preliminary testing protocols scheduled to begin in Q2 2022. As part of its plans, the central bank published a preliminary report detailing its CBDC thesis. The main motivations are increasing financial inclusion and reducing the risk that private stablecoins underming the central bank's “monetary sovereignty and financial stability.” The central bank will begin its CBDC developmental efforts by engaging with stakeholders followed by cost-benefit analysis to ascertain the opportunities, risks and challenges. https://www.bot.or.th/English/PressandSpeeches/Press/2021/Pages/n2164.aspx
#Fintech#CryptoAssets#CBDC#DFC
·cointelegraph.com·
Bank of Thailand to begin central bank digital currency tests in 2022
Crunchfish enables digital cash as the default means of payment for real-time mobile payments
Crunchfish enables digital cash as the default means of payment for real-time mobile payments
Crunchfish’s Digital Cash Wallet compliments any digital payment service on smart cards or in digital wallets with capabilities that replicates paying with cash. A two-step hierarchical architecture makes Digital Cash payments independent from the net, offering instant clearing offline at the moment of payment, followed by settlement online to move money between accounts. The Digital Cash Wallet has a mirrored virtual online account which is debited when either the payer or the receiver connects online. The virtual account may only be debited from the Digital Cash Wallet, protecting against overdrafts, and it also registers all activity in the Digital Cash Wallet. VISA has recently proposed this two-tier architecture for CBDC.
#Fintech#CryptoAssets#CBDC#Offline#Crunchfish#DFC
·crunchfish.com·
Crunchfish enables digital cash as the default means of payment for real-time mobile payments
Digital version of fiat currency in works
Digital version of fiat currency in works
The Reserve Bank of India is still working on introducing a digital version of the fiat currency, assessing the financial stability implications of introducing such a central bank digital currency (CBDC). As the underlying technology is still developing, we are exploring ways for a clear, safe and legally certain settlement finality, which is most crucial for a secure and efficient payment system. https://www.rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=1106
#Fintech#CryptoAssets#CBDC#DFC
·thehindubusinessline.com·
Digital version of fiat currency in works
Bank Negara Malaysia to Evaluate Merits of Digital Currencies Through POCs
Bank Negara Malaysia to Evaluate Merits of Digital Currencies Through POCs
Bank Negara Malaysia is “actively building internal capacity to support informed decisions" on central bank digital currency (CBDC) including conducting proofs of concepts (POCs). Though they do not have any immediate plans to issue CBDC they will “actively assess the potential value proposition of CBDC”. The central bank said that policy decisions around CBDCs will be guided by whether it is able to demonstrate clear benefits to Malaysia as a whole while ensuring that risks from CBDCs are effectively managed, in particular, the financial stability risks. https://www.bnm.gov.my/-/ar2020_en_pr
#CryptoAssets#Fintech#CBDC#DFC
·fintechnews.my·
Bank Negara Malaysia to Evaluate Merits of Digital Currencies Through POCs
Consumer-Centric Aspects of the Proposed Regulations for the Bahamian Digital Currency
Consumer-Centric Aspects of the Proposed Regulations for the Bahamian Digital Currency
The Central Bank of the Bahamas (CBOB) circulated draft Sand Dollar regulations for for public consultation on February 15. They are intended to enhance the existing legislative framework governing Payment Services Providers (PSPs), specific to their provision of central bank digital currency (CBDC) linked services. The consultation period closes on March 31 and the regulations will be finalized for issuance by May 1, 2021. Also, all wallet providers are expected to achieve full interoperability by March 31.
#Fintech#CryptoAssets#CBDC#Regulation#DFC
·centralbankbahamas.com·
Consumer-Centric Aspects of the Proposed Regulations for the Bahamian Digital Currency
JP Koning: Can Decentralized Stablecoins Stabilize?
JP Koning: Can Decentralized Stablecoins Stabilize?
The worry is that in dispensing with collateral as a line of defense (or using less of it), the new breed of less-than-fully collateralized stablecoins may not be able to weather a major black swan event, say like a market crash, an outbreak of war or a new pandemic. It’s possible that less-than-fully collateralized stablecoins will prove to be an enduring advance in financial technology. If so, they’ll imbue DeFi with true stability while simultaneously disconnecting it from the incumbent financial system. Or they could be highly risky assets that offer only the illusion of safety. We’ll know which it is when the next big market disruption hits.
#Fintech#CryptoAssets#Stablecoins#Terra#DFC
·coindesk.com·
JP Koning: Can Decentralized Stablecoins Stabilize?
Central Banks and Crypto Currencies
Central Banks and Crypto Currencies
"John Kiff, a senior analyst at the International Monetary Fund (IMF), notes that retail central bank digital currencies (CBDCs) are currently in some stage of research and development at least 52 central banks around the world. In a March webcast sponsored by the Central Bank Digital Currency Think Tank (CBDCTT.com), Kiff said that several major central banks are now deeply involved in CBDC efforts, including the U.S. Federal Reserve and the European Central Bank as well as the Bank of England and its counterparts in Japan, Canada, and elsewhere. Moreover, Kiff said the IMF is running a CBDC “technical assistance program” for smaller central banks."
#Fintech#CryptoAssets#CBDC#DFC
·iinetworks.com·
Central Banks and Crypto Currencies
Bank of Japan Establishes CBDC Liaison and Coordination Committee
Bank of Japan Establishes CBDC Liaison and Coordination Committee
The Bank of Japan (BoJ) will engage in experiments on general-purpose central bank digital currency (CBDC) from fiscal year 2021. The BoJ will first test the technical feasibility of the core functions and features required for CBDC through proof of concepts (PoC). It has has established a "Liaison and Coordination Committee on Central Bank Digital Currency" through which it will share details of and provide updates on the PoC with the private sector and the government and will seek consultation on future steps to facilitate smooth implementation of the PoC.
#Fintech#CryptoAssets#CBDC#Japan#DFC
·boj.or.jp·
Bank of Japan Establishes CBDC Liaison and Coordination Committee
Digital Currencies and Bank Competition
Digital Currencies and Bank Competition
This article examines how the issuance of a digital currency by a non-bank operator impacts competition between banks in a cashless society. Unlike banks, the digital currency provider is not allowed to engage in maturity transformation. I analyze how the fee charged for the digital currency impacts the interest rates on loans and the fees charged by banks to depositors for paying from their bank account and opening an account in a bank. I derive the conditions under which consumers use the digital currency to pay. I also discuss how the distribution mode of the digital currency may impact its use for payments.
#Fintech#CryptoAssets#Stablecoins#CBDC#DFC
·acpr.banque-france.fr·
Digital Currencies and Bank Competition
Global Stablecoins: Monetary Policy Implementation Considerations from the U.S. Perspective
Global Stablecoins: Monetary Policy Implementation Considerations from the U.S. Perspective
This US Federal Reserve note explores the potential effects of the widespread adoption of a global stablecoin (GSC) on key aggregate financial sector balance sheets in the United States. To do this, it maps out cash flows of GSC transactions among financial sector entities using a stylized set of 't-accounts'. By analyzing these individual transactions, it infers aggregate and compositional effects on U.S. commercial banking sector and Federal Reserve balance sheets. Through this lens, the note also considers how these balance sheet changes could affect monetary policy implementation, the demand for central bank reserves, and the market for US dollar safe assets.
#Fintech#CryptoAssets#Stablecoins#MonetaryPolicy#DFC
·federalreserve.gov·
Global Stablecoins: Monetary Policy Implementation Considerations from the U.S. Perspective
Digital central bank money for Europeans – getting ready for the future
Digital central bank money for Europeans – getting ready for the future
According to this European Central Bank (ECB) blog post... "There are three misconceptions about the digital euro. First, that the ECB intends to abolish cash and then, having done so, impose even lower interest rates on the digital euro for reasons related to how monetary policy is implemented. Second, that a digital euro would displace banking intermediation. And third, that the digital euro would not be based on a viable business model. First of all, it is not yet decided whether a digital euro will be introduced at all. We are still exploring the possibility and considering it conceptually. Later this year, the ECB’s Governing Council will decide whether or not the ECB should launch a project to get ready to issue a digital euro. Even if it decides to do so, it would simply mean that it want to be prepared. A decision to actually issue a digital euro would come at a later stage."
#Fintech#CryptoAssets#CBDC#DFC
·ecb.europa.eu·
Digital central bank money for Europeans – getting ready for the future
A bellwether moment for CBDC plans
A bellwether moment for CBDC plans
A bellwether moment was reached in October last year when the Central Bank of the Bahamas became the first body with authority over public money to issue a nationwide, retail central bank digital currency (CBDC). The ‘sand dollar’, the digital equivalent of the Bahamian dollar, aims to provide inclusive access to regulated payments and other financial services.
#Fintech#CryptoAssets#CBDC#DFC
·centralbanking.com·
A bellwether moment for CBDC plans
IMF staff say Marshall Islands digital currency would raise risks
IMF staff say Marshall Islands digital currency would raise risks
International Monetary Fund (IMF) staff concluded that the issuance of the digital currency SOV by the Republic of the Marshall Islands (RMI) as a second legal tender would raise risks to macroeconomic and financial stability as well as financial integrity. The RMI’s legal, regulatory, and institutional framework is not yet ready to accommodate the SOV issuance and manage associated risks. SOV issuance could jeopardize the RMI’s last USD corresponding banking relationship (CBR). This combined with anti-money laundering and combatting the financing of terrorism (AML/CFT) risks (including those related to the SOV) could disrupt external aid and other important financial flows, resulting in a significant drag on the economy. Hence, the potential cost of the SOV issuance will likely outweigh the expected benefits.
#Fintech#CryptoAssets#CBDC#DFC#Marshall_Islands
·imf.org·
IMF staff say Marshall Islands digital currency would raise risks
DLT-based securities settlement in central bank money successfully tested
DLT-based securities settlement in central bank money successfully tested
Deutsche Börse, Deutsche Bundesbank and Germany’s Finance Agency successfully tested a settlement interface for electronic securities, working with a range of other market participants. Securities settlement using distributed ledger technology (DLT) is performed with the aid of a “trigger” solution and a transaction coordinator in TARGET2, the Eurosystem’s large-value payment system. In doing so, the participants have demonstrated that it is possible to establish a technological bridge between blockchain technology and conventional payment systems to settle securities in central bank money with no need to create central bank digital currency.
#Fintech#Blockchain#CBDC#SettlementSystems#DFC
·bundesbank.de·
DLT-based securities settlement in central bank money successfully tested
The Bank of Jamaica Prepares for Central Bank Digital Currency
The Bank of Jamaica Prepares for Central Bank Digital Currency
The Bank of Jamaica (BoJ) announced that eCurrency Mint has been chosen as the technology provider to support the Bank of Jamaica in testing a retail central bank digital currency (CBDC) solution in the BoJ’s Fintech Regulatory Sandbox for a pilot in May to end December 2021. See also: http://www.boj.org.jm/uploads/news/cbdc_information_press_release_22_march_2021.pdf
#Fintech#CryptoAssets#CBDC#DFC
·boj.org.jm·
The Bank of Jamaica Prepares for Central Bank Digital Currency
The paradox of banknotes: Understanding the demand for cash beyond transactional use
The paradox of banknotes: Understanding the demand for cash beyond transactional use
Recent payment surveys indicate that the share of cash transactions in the euro area has decreased. This, together with ongoing digitalisation in retail payments, might have been expected to lead to a decrease in the demand for cash. However, this reduction in demand has not occurred. In fact, the number of euro banknotes in circulation has increased since 2007. This seemingly counterintuitive "banknote paradox" can be explained by demand for banknotes as a store of value in the euro area coupled with demand for euro banknotes outside the euro area.
#Fintech#Cash#CBDC#DFC
·ecb.europa.eu·
The paradox of banknotes: Understanding the demand for cash beyond transactional use
What is the PBOC's CBDC "controllable anonymity"?
What is the PBOC's CBDC "controllable anonymity"?
The wallet with the weakest know-your customer (KYC) strength is an anonymous wallet, which can be opened with only a mobile phone number. Such wallets, which can be opened with just a mobile phone numbers are completely anonymous to the PBOC and various operating agencies. However, this type of wallet will the lowest balance and daily transaction limit, which can only meet the daily needs of small payments. To make large payments , the wallet needs to be upgraded, and the wallet balance and payment limit will increase as the KYC intensity increases.
#Fintech#CryptoAssets#CBDC#China#DFC
·news.stcn.com·
What is the PBOC's CBDC "controllable anonymity"?
PBoC official says 'completely anonymous CBDC is not an option'
PBoC official says 'completely anonymous CBDC is not an option'
The head of the People's Bank of China's Digital Currency Research Institute, Mu Changchun, said that "controllable anonymity" remains at the core of China's digital yuan design. That is, privacy will only apply to end users when they transact among themselves while the details of those transactions remain visible to the central bank and regulators. He also has said a "completely anonymous central bank digital currency (CBDC) is not an option" based on international consensus. Any design that doesn't satisfy anti-money laundering, anti-terrorism financing and anti-tax evasion purposes will be simply vetoed. https://news.stcn.com/sd/202103/t20210321_2933464.html
#Fintech#CryptoAssets#CBDC#China#DFC
·theblockcrypto.com·
PBoC official says 'completely anonymous CBDC is not an option'
CBDC: Where is the unique selling proposition?
CBDC: Where is the unique selling proposition?
This paper provides a systemic analysis of the existing payment ecosystems in advanced and developing/emerging economies and discusses CBDC proposals from the perspective of potential unique selling propositions vis-à-vis existing subsystems.
#Fintech#CryptoAssets#CBDC#DFC
·suerf.org·
CBDC: Where is the unique selling proposition?
The Woman Behind Cambodia's Moonshot Blockchain Project
The Woman Behind Cambodia's Moonshot Blockchain Project
"You can call Project Bakong NBC’s moonshot. This blockchain-based “backbone payments system” could remake the lives of millions of people and set a benchmark for how such modern infrastructure can improve lives in the developing world and beyond. It’s certainly already turning heads within the crypto community, which is intrigued by the idea of central banks doing a digital currency thing."
#Fintech#Blockchain#CBDC#Payments#DFC
·coindesk.com·
The Woman Behind Cambodia's Moonshot Blockchain Project
Thailand to Regulate Stablecoins Sooner than Bitcoin
Thailand to Regulate Stablecoins Sooner than Bitcoin
The Bank of Thailand is moving towards introducing stablecoin regulations as soon as this year. They will only cover stablecoins, and not crypto-assets like Bitcoin and Ethereum. However, the purview of the framework will not only include Thai baht-backed stablecoins, but also such digital currencies backed by foreign currencies and other assets. https://www.bot.or.th/English/PressandSpeeches/Press/2021/Pages/n1664.aspx
#Fintech#CryptoAssets#Stablecoins#Regulation#DFC
·financemagnates.com·
Thailand to Regulate Stablecoins Sooner than Bitcoin
Multi-CBDC arrangements and the future of cross-border payments
Multi-CBDC arrangements and the future of cross-border payments
This BIS paper explores how interoperating multi-central bank digital currency (mCBDC) arrangements could reduce cross-border payment inefficiencies. This could be especially relevant for emerging market economies poorly served by the existing correspondent banking arrangements. Yet competing priorities and history show that these benefits will be difficult to achieve unless central banks incorporate cross-border considerations in their CBDC development from the start and coordinate internationally to avoid the mistakes of the past.
#Fintech#CryptoAssets#CBDC#CrossBorder#DFC
·bis.org·
Multi-CBDC arrangements and the future of cross-border payments