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Thailand’s central bank warns against ‘illegal’ THT stablecoin
Thailand’s central bank warns against ‘illegal’ THT stablecoin
The Bank of Thailand (BoT) has issued a warning against baht-denominated stablecoin Thai Baht Digital (THT), citing a sixty-year-old law, that makes the "creation, issuance, usage or circulation of any material or token for money is a violation of Section 9 of the Currency Act 1958.” “Although THT is currently not used as a medium of exchange, it could cause fragmentation to the Thai currency system should THT or other similar stablecoins come to replace, substitute or compete with Baht issued by the BOT,” the BoT noted. THT stablecoin is issued on the Terra platform which has produced various other stablecoins including the TerraUSD and TerraKRW. The Terra platform is also behind the chai payment app, an e-commerce wallet that is mainly used in Asia and powered by stablecoins. https://www.bot.or.th/English/PressandSpeeches/Press/2021/Pages/n1564.aspx
#Fintech#CryptoAssets#Stablecoins#Regulation#DFC
·cointelegraph.com·
Thailand’s central bank warns against ‘illegal’ THT stablecoin
ECCB Governor Announces DCash Public Launch
ECCB Governor Announces DCash Public Launch
The Eastern Caribbean Central Bank (ECCB) will roll-out DCash, the ECCB’s digital currency, on March 31, 2021. Consumers can sign up to use DCash either through a participating financial institution or via an authorised DCash agent. The ECCB will roll out DCash initially in Antigua and Barbuda, Grenada, Saint Kitts and Nevis and Saint Lucia as part of the ECCB’s Digital Currency Pilot.
#Fintech#CryptoAssets#CBDC#DFC
·eccb-centralbank.org·
ECCB Governor Announces DCash Public Launch
Bank of Japan governor says CBDC preparation can't wait until hour of need
Bank of Japan governor says CBDC preparation can't wait until hour of need
Although it still has no immediate plan to issue central bank digital currency (CBDC) the Bank of Japan continues to "carefully consider the way in which we should provide central bank money." And "from the viewpoint of ensuring the stability and efficiency of the overall payment and settlement systems... [it] consider[s] it important to prepare thoroughly to respond to changes in circumstances in an appropriate manner." https://www.boj.or.jp/en/announcements/press/koen_2021/ko210316a.htm/
#Fintech#CryptoAssets#CBDC#DFC
·cointelegraph.com·
Bank of Japan governor says CBDC preparation can't wait until hour of need
Optimal Countries for CBDC Implementation
Optimal Countries for CBDC Implementation
This article analyzes the current central bank digital currency (CBDC) landscape. A sample of potential candidate countries for establishing a CBDC was selected, motives for implementing a CBDC were collected, and variables were assigned to these motives. Statistical methods were applied to obtain a sample of the countries with the highest correlation with three CBDC "pioneer" countries (Bahamas, China, and Uruguay). The results show that the Baltic Sea area (Lithuania, Estonia, and Finland) is a good CBDC candidate, in South America it's Brazil, and in Asia, China and Malaysia show high correlations with the three pioneer countries. In Africa, South Africa stands out as an optimal area for CBDC implementation.
#Fintech#CryptoAssets#CBDC#DFC
·ideas.repec.org·
Optimal Countries for CBDC Implementation
Monetary Policy Pass-Through with Central Bank Digital Currency
Monetary Policy Pass-Through with Central Bank Digital Currency
This Bank of Canada paper investigates how interest-bearing central bank digital currency (CBDC) would interact with traditional monetary policy tools, such as the interest on central bank reserves. The analysis is based on a model in which CBDC and bank deposits are perfect substitutes as electronic payment methods. It finds that CBDC tends to weaken the pass-through of the interest on reserves to deposit rates when banks have market power, but the reverse holds when the market is competitive. However, a high (low) interest rate on reserves may weaken (strengthen) the pass-through of the interest on CBDC.
#Fintech#CryptoAssets#CBDC#DFC
·bankofcanada.ca·
Monetary Policy Pass-Through with Central Bank Digital Currency
The soon-to-launch Fei Protocol would mint stablecoins by simply selling them directly to users
The soon-to-launch Fei Protocol would mint stablecoins by simply selling them directly to users
FEI is a reserve-backed stablecoin that works through a direct incentive method, in which FEI can give users bonuses or charge fees for making trades that help it maintain its dollar peg. Users can buy FEI from the protocol, and the protocol takes those assets in reserve. The asset traded belongs to the Fei protocol after the trade. The assets in reserve could even be under-collateralized, and the assets would be deployed elsewhere, such as on the secondary market or – later – in yield-generating projects. Fei’s “genesis launch” is set for March 22, when users will be able to post ETH to get FEI tokens. Early participants in the sale and in the protocol’s liquidity pools on DeFi exchange Uniswap will be incentivized with TRIBE, the project’s governance token.
#Fintech#CryptoAssets#Stablecoins#DFC
·coindesk.com·
The soon-to-launch Fei Protocol would mint stablecoins by simply selling them directly to users
Bank of Russia to start digital ruble trials in 2022
Bank of Russia to start digital ruble trials in 2022
The Bank of Russia will reportedly complete what sounds like a digital ruble proof of concept by the end of 2021. According to the reports, deputy governor Alexey Zabotkin said that the prototype will not support “real transactions” but would rather serve as a starting point to build the ecosystem on. Based on this prototype, including refinement, the central bank will start rolling out trial rounds in 2022.
#Fintech#CryptoAssets#CBDC#DFC
·cointelegraph.com·
Bank of Russia to start digital ruble trials in 2022
Digital currency by next year
Digital currency by next year
Jamaican Finance Minister Nigel Clarke announced that the Bank of Jamaica will launch a central bank digital currency (CBDC) pilot in 2021 aiming for a full-scale launch in 2022. It will be issued to deposit-taking institutions and authorised payment providers in the same manner that it issues cash. The BoJ Act is to be amended, giving the central bank the sole authority to issue digital currency. https://www.youtube.com/watch?v=SWtEuQYG9gQ&t=4719s
#Fintech#CryptoAssets#CBDC#DFC
·jamaicaobserver.com·
Digital currency by next year
Three Ways to Have Anonymous CBDCs
Three Ways to Have Anonymous CBDCs
Any type of money that requires a ledger, be it centralised or distributed, does not provide anonymity to the user.  Even if the ledger does not require a user’s identity, it will record the transactions of the user that can be used to track him or her down.  This was seen in the case of bitcoin and the Silk Road darknet website, which was shut down by US federal agents in 2013.  And current CBDCs, as in China and the Bahamas, make no claim of full anonymity in transactions.  So, is anonymity even possible with a CBDC?
#Fintech#CryptoAssets#CBDC#Privacy#DFC
·newmoneyreview.com·
Three Ways to Have Anonymous CBDCs
Ethereum’s Buterin Says Tether Is Bitcoin’s ‘Ticking Time Bomb Demon’
Ethereum’s Buterin Says Tether Is Bitcoin’s ‘Ticking Time Bomb Demon’
Vitalik Buterin argued that, like Ethereum, Bitcoin has its own potential bombs waiting to explode. The ecosystem around Ethereum could see failures and hacks, discussed the participants of The Tim Ferriss Show yesterday. To this, Buterin said: “I think the Bitcoin ecosystem does have its own […] ticking time bomb demons too, like Tether is one example.” He did not elaborate on this any further."
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·cryptowhalex.medium.com·
Ethereum’s Buterin Says Tether Is Bitcoin’s ‘Ticking Time Bomb Demon’
Who Needs a Digital Dollar? by Barry Eichengreen
Who Needs a Digital Dollar? by Barry Eichengreen
The People’s Bank of China (PBOC’s) main motivation for issuing a digital renminbi is to create a government-controlled alternative to two very large and loosely regulated digital payment platforms, Alipay and WeChat Pay. The ubiquity of Alipay and WeChat Pay raises the specter of the Chinese authorities losing control of payment flows through the economy. The American government has no analogous worries that justify the Fed issuing a digital dollar.
#Fintech#CryptoAssets#CBDC#DFC
·project-syndicate.org·
Who Needs a Digital Dollar? by Barry Eichengreen
JP Koning: Regulation Could Actually Help Tether
JP Koning: Regulation Could Actually Help Tether
Against its wishes, Tether is now a New York-regulated financial firm. It will grudgingly have to make its financials public. Assuming they like what they see come reporting time, Tether skeptics may start to rethink their distaste. DeFi protocols like Maker and Compound may even lighten their tether penalties, thus gobbling up more tether. And who knows, maybe Tether will, after a taste of oversight, try to come in from the cold and apply for a money transmitter license like everyone else. Whether it will qualify is another matter. But stranger things have happened.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·coindesk.com·
JP Koning: Regulation Could Actually Help Tether
China’s DCEP project launches biggest digital yuan test yet
China’s DCEP project launches biggest digital yuan test yet
The city of Chengdu launched China’s largest digital currency trial to date, following those already completed in Beijing, Suzhou and Shenzhen. Prior to Chengdu, there had been six trials of the “Digital Currency, Electronic Payment” (DCEP) project in China, with a total distribution of 120 million digital yuan. Chengdu’s trial, which will conclude March 19, is for an additional 40 million digital yuan.
#CryptoAssets#Fintech#CBDC#China#DFC
·forkast.news·
China’s DCEP project launches biggest digital yuan test yet
Ripple Pilots a Private Ledger for Central Banks Launching CBDCs
Ripple Pilots a Private Ledger for Central Banks Launching CBDCs
Ripple is piloting a private version of the public, open-source XRP Ledger that provides Central Banks a secure, controlled and flexible solution for the issuance and management of digital currencies. Moving money on the CBDC Private Ledger will be cost-effective, reliable and close to instantaneous. Transactions can also happen at volumes required by Central Banks. The CBDC Private Ledger will handle tens of thousands of transactions per second (TPS) initially with the potential to scale to hundreds of thousands TPSs over time.
#CryptoAssets#Fintech#CBDC#Ripple#DFC
·ripple.com·
Ripple Pilots a Private Ledger for Central Banks Launching CBDCs
CBDCs - the time has come
CBDCs - the time has come
Central Bank Digital Currencies (CBDCs) have been high on policy makers’ agenda for the past few years. Numerous central banks around the world have issued reports on the viability, use cases and even potential structures for a tokenised or account-based form of central bank money, based on distributed ledger technology or existing technology. The theory has largely been proved to be effective and now it is time to bring these CBDCs to life.
#Fintech#CryptoAssets#CBDC#DFC
·euroclear.com·
CBDCs - the time has come
Cash and COVID-19: The Effects of Lifting Containment Measures on Cash Demand and Use
Cash and COVID-19: The Effects of Lifting Containment Measures on Cash Demand and Use
More than half of Canadians surveyed in July 2020 used cash as a form of payment, which was somewhat less than the proportion using debit and credit methods. So while electronic methods continued to dominate, a large percentage of Canadians also used cash for payments, and that share increased from the spring into the summer. A large majority of Canadians continue to report that they have no plans to go cashless in the next five years.
#Fintech#Cash#CBDC#DFC
·bankofcanada.ca·
Cash and COVID-19: The Effects of Lifting Containment Measures on Cash Demand and Use
Innovation Sparks Community Currencies
Innovation Sparks Community Currencies
Just as community currencies boomed during the Great Depression, their digital versions are expanding amid the COVID-19 recession. Complex experiments are combining mobile payments with blockchain. In Turkey, Good4Trust, a virtual bazaar for socially and environmentally conscious producers and consumers, is preparing to launch a community currency using blockchain powered by Celo. Brixton, a London neighborhood, has announced the release of a digital version of its Brixton Pound community currency using blockchain from Algorand. According to Celo's Ezechiel Copic, "there’s a lot of focus on central bank digital currency [but] local currencies can provide a testing ground for these initiatives.”
#Fintech#CryptoAssets#CBDC#Algorand#Celo#Gesell#DFC
·imf.org·
Innovation Sparks Community Currencies
Tether hit with 500 Bitcoin ransom demand — but says it won't pay
Tether hit with 500 Bitcoin ransom demand — but says it won't pay
Hackers have threatened to release sensitive company documents supposedly belonging to USDT stablecoin issuer Tether unless the firm sends a 500 Bitcoin (BTC) ransom to a specified address. Hackers purportedly threatened to leak documents that would “harm the Bitcoin ecosystem” if their ransom demands are not met. Tether has already stated that it will not pay the ransom.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·cointelegraph.com·
Tether hit with 500 Bitcoin ransom demand — but says it won't pay
Digital currency can transform payment transactions; poses disintermediation risk: RBI report- The New Indian Express
Digital currency can transform payment transactions; poses disintermediation risk: RBI report- The New Indian Express
The Reserve Bank of India (RBI) "remains in readiness to operationalize central bank digital currency (CBDC) as and when necessary... with the eventual decline in the usage of (physical) currency gaining traction." According to the report, CBDC has the potential to bring about a sea change in payment transactions and quicken transmission, but poses a risk of disintermediation of the banking system, although this risk can be mitigated with a two-tier remuneration system for CBDCs, whereby transaction balances held by an individual remain interest free and are subject to a ceiling while CBDC balances of the individual over and above the ceiling are subject to a penal negative interest rate. https://www.rbi.org.in/SCRIPTs/AnnualPublications.aspx?head=Report%20on%20Currency%20and%20Finance
#Fintech#CryptoAssets#CBDC#DFC
·newindianexpress.com·
Digital currency can transform payment transactions; poses disintermediation risk: RBI report- The New Indian Express
Reserve Bank of Australia Still Cool to Retail CBDC
Reserve Bank of Australia Still Cool to Retail CBDC
The Reserve Bank of Australia Payments System Board continues to be of the view that there is not a strong public policy case at present for issuance of a retail CBDC in Australia. However, the Bank is continuing its collaborative research project on a wholesale CBDC with a number of external parties.
#Fintech#CryptoAssets#CBDC#DFC
·rba.gov.au·
Reserve Bank of Australia Still Cool to Retail CBDC
Bank of Jamaica Advances Plans To Develop Central Bank Digital Currency
Bank of Jamaica Advances Plans To Develop Central Bank Digital Currency
The Bank of Jamaica (BOJ) announced plans to begin a central bank digital currency (CBDC) pilot in the second or third quarter of 2021. Over the last couple months, the BOJ has undertaken the requisite preliminary work relating to assessments and protocols aimed at receiving government approval for a pilot to run for a couple of months and be finiahed by the end of the year. If the pilot is successful, the BOJ aims to issue the new CBDC to the public in early 2022. The BOJ highlighted the benefits of CBDC which include increased financial inclusion, and providing another means of efficient and secured payments. Also, for deposit-taking institutions, the BOJ claimed that CBDC represents an opportunity to improve cash management processes and costs.
#Fintech#CryptoAssets#CBDC#DFC
·jis.gov.jm·
Bank of Jamaica Advances Plans To Develop Central Bank Digital Currency
Has Bitcoin Succeeded?
Has Bitcoin Succeeded?
"Bitcoin is vulnerable to government surveillance and prohibitions that could quash crypto exchanges and drive trades underground. But it arguably could survive underground better than could a banking system based on commodity redeemability that must be openly accessible to be trustworthy. If Bitcoin will continue to thrive as an investment and medium-of-exchange-in-waiting "until the authorities do better" at managing fiat money (and at allowing financial privacy), then Bitcoin may thrive for a long time to come."
#Fintech#CryptoAssets#CBDC#DFC
·alt-m.org·
Has Bitcoin Succeeded?
Preconditions for a general-purpose central bank digital currency
Preconditions for a general-purpose central bank digital currency
This U.S. Federal Reserve paper identifies some high-level environmental preconditions that support a general-purpose CBDC in the United States. These preconditions are necessary, though not sufficient, and can be broadly grouped into five areas: clear policy objectives, broad stakeholder support, strong legal framework, robust technology, and market readiness. Within each area, detailed elements are discussed. These areas and elements are not exhaustive because many systems, tools, processes, and structures will need to be in place for a CBDC. In addition, many of these elements are interconnected. For example, engaging with a broad array of stakeholders and monitoring market readiness could inform clear policy objectives and vice versa. The paper does not attempt to prescribe how to address these preconditions; it aims to spark further inquiry.
#Fintech#CryptoAssets#CBDC#DFC
·federalreserve.gov·
Preconditions for a general-purpose central bank digital currency
Legal troubles may delay CBDCs
Legal troubles may delay CBDCs
As the law will determine what type of central bank digital currency (CBDC) can be issued in each jurisdiction, getting the legal model right is a crucial step in introducing one. The current statutory language seems to provide the ECB with enough room to offer a digital euro directly to the public through digital accounts if it so chooses. However, for example, the US and Brazilian central banks are authorised to establish relations only with a limited set of institutions, notably banks, not with people or corporations. Without a change to these rules, digital dollars and digital reais would have to be distributed to the public through intermediaries, just like cash is made available today through banks. For all central banks considering issuing a CBDC, the time to tackle the legal troubles and seek legislative reform is now, because reaching a political consensus on this model may take time, since CBDCs raise many contentious issues, from changing the business of banking to creating new privacy risks.
#Fintech#CryptoAssets#CBDC#Regulation#DFC
·omfif.org·
Legal troubles may delay CBDCs
VersaBank to Launch VCAD, World’s First Bank-issued, Deposit-based Digital Currency
VersaBank to Launch VCAD, World’s First Bank-issued, Deposit-based Digital Currency
Canadian digital bank VersaBank plans to launch a Canadian dollar-pegged stablecoin. VCAD will be issued by VersaBank to financial intermediary partners in exchange for Canadian dollar deposits. The partners will then offer VCAD directly to individuals and businesses for use in commerce. VCAD will be redeemable for Canadian dollars as required.
#Fintech#CryptoAssets#Stablecoins#Canada#DFC
·versabank.com·
VersaBank to Launch VCAD, World’s First Bank-issued, Deposit-based Digital Currency