DFC

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Bank of Korea: CBDCs Are Fiat Currency Not Virtual Assets
Bank of Korea: CBDCs Are Fiat Currency Not Virtual Assets
The Bank of Korea has published the results of research it conducted last year on the legal issues surrounding central bank digital currency (CBDC). It concludes that the Bank of Korea Act would need to be amended to accommodate the issuance of a digital currency, because the act only accounts for notes and coins at present. However, CBDC would meet the requirements of currency legislation and could be freely exchanged with cash as the two share the same legal status. Therefore it would be reasonable to treat a CBDC in the same way as cash deposits held by financial institutions. http://www.bok.or.kr/portal/bbs/P0000559/view.do?nttId=10062857&menuNo=200690
#Fintech#CryptoAssets#CBDC#DFC
·coindesk.com·
Bank of Korea: CBDCs Are Fiat Currency Not Virtual Assets
With Beijing onboard, China has so far issued $17 million in digital yuan
With Beijing onboard, China has so far issued $17 million in digital yuan
With Beijing being the next city joining the digital yuan test, China has now issued a total of 110 million (worth $17 million) of its central bank digital currency, also known as DC/EP. Beijing will be distributing 10 million digital yuan to 50,000 local residents via a lottery. Similar to previous tests, lottery-winners will be able to spend the free digital yuan in offline and online merchants that support the DC/EP payment method. https://mp.weixin.qq.com/s/EGsbFLvCMxB7WUXHJ1z_JA
#Fintech#CryptoAssets#CBDC#China#DFC
·theblockcrypto.com·
With Beijing onboard, China has so far issued $17 million in digital yuan
Hardware wallet for digital yuan debuts in Xiong’an New Area
Hardware wallet for digital yuan debuts in Xiong’an New Area
The Xiong’an branch of the Agricultural Bank of China in Hebei has produced the first hardware wallet designed for the digital yuan. The product was developed by the Party Working Committee of the Xiongan New Area and the People’s Bank of China branch in Shijiazhuang. The new hardware wallet supports dual offline payments without an internet connection. The digital yuan wallet also features payments without the use of mobile phones. https://mp.weixin.qq.com/s/Fnr4u8IjdgVi9_FIjOyFZQ
#Fintech#CryptoAssets#CBDC#Offline#China#DFC
·cointelegraph.com·
Hardware wallet for digital yuan debuts in Xiong’an New Area
Money creation, bank profits, and central bank digital currency
Money creation, bank profits, and central bank digital currency
The role of central bank digital currency is increasingly being discussed, both in terms of its utility in monetary policy as well as the controversy of bank-level profit from money creation. This column presents a method for quantifying the funding cost reduction enjoyed by banks, highlighting that money creation substantially contributes to profits. This raises important questions for policymakers to address as they seek to optimise the deployment of digital currencies within financial institutions.
#Fintech#CryptoAssets#CBDC#DFC
·voxeu.org·
Money creation, bank profits, and central bank digital currency
Algorithmic Stablecoins
Algorithmic Stablecoins
It’s probably too early to tell, but algorithmic stablecoin efforts to create stability without collateral seem ambitious and prone to breakage. The evidence that Empty Set Dollar and Dynamic Set Dollar have provided over the last few months suggests they are too ambitious. An algorithmic stablecoin only works so long as its users’ self-referential beliefs persist.
#Fintech#CryptoAssets#Stablecoins#DFC
·aier.org·
Algorithmic Stablecoins
Go local with money, payments and data
Go local with money, payments and data
Local currencies can help restore balance in society and it’s time to move away from an economy based on the exploitation of individuals’ personal data. So says Diana Finch, managing director of Bristol Pound and our interviewee in the latest New Money Review podcast. The Bristol Pound is a local currency project born in the aftermath of the 2008 financial crisis. It first appeared in 2012 and quickly grew to become the UK’s largest scheme of its type.
#Fintech#CryptoAssets#Stablecoins#Payments#DFC
·newmoneyreview.com·
Go local with money, payments and data
Bitfinex says it has repaid Tether remaining loan balance of $550 million
Bitfinex says it has repaid Tether remaining loan balance of $550 million
Bitfinex has repaid its sister company Tether the remaining loan balance of $550 million. In 2018, Tether opened a credit line worth $900 million for Bitfinex, of which $750 million was used by the exchange. Bitfinex repaid $100 million each in 2019 and 2020. That loan is at the heart of an ongoing legal dispute with New York’s Attorney General.
#Fintech#CryptoAssets#Stablecoins#Tether#Bitfinex#DFC
·theblockcrypto.com·
Bitfinex says it has repaid Tether remaining loan balance of $550 million
The fabrication of trust in various types of dollars
The fabrication of trust in various types of dollars
It could be that Tether doesn't have solid enough finances to do any of the things I've listed. Or maybe it does, but it doesn't actually care about rumours. After all, even after years of criticism, Tether continues to grow and dominate the stablecoin sector. The community of stablecoin users seem quite content to rely on everyone's using it. For now, at least.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·jpkoning.blogspot.com·
The fabrication of trust in various types of dollars
China’s SWIFT joint venture shows Beijing eyeing global digital currency use, to internationalise yuan
China’s SWIFT joint venture shows Beijing eyeing global digital currency use, to internationalise yuan
The People’s Bank of China (PBoC) China National Clearing Center (CNCC) and its Digital Currency Research Institute (DCRI) has partnered with SWIFT to launch a new financial payment service, Finance Gateway Information Service Limited. No further details on the functions or scope of the funding were offered on the registration document. SWIFT owns 55% of the incorporation contribution, CNCC owns 34%, DCRI 3%, CNCC’s subsidiary Cross-border Interbank Payments and Settlement Limited (5%), and the Clearing Association of China (3%).
#Fintech#CryptoAssets#CBDC#China#DFC
·scmp.com·
China’s SWIFT joint venture shows Beijing eyeing global digital currency use, to internationalise yuan
USDC is Live on the Stellar Network
USDC is Live on the Stellar Network
USDC has gone live on the Stellar network. At launch, Stellar USDC is immediately available on Stellar's decentralized exchange, accessible to any Stellar account through integrated wallets (Lobstr, Solar, StellarPort, StellarX, and StellarTerm), and tradeable across Stellar's ecosystem of more than 9,000 assets including stablecoins like NGNT, BRLT, ARST, EURT, TZS and ZAR.
#Fintech#CryptoAssets#Stablecoins#USDC#Stellar#DFC
·stellar.org·
USDC is Live on the Stellar Network
Debunking“The Bit Short”
Debunking“The Bit Short”
We do not intend to defend Tether, iFinex, Bitfinex or any other private organization related to tether, we have not spoken to them and they can and do speak for themselves. Rather, we are here to debunk the faulty information in “The Bit Short,” as well as to provide some context so that new investors can avoid the obvious misconceptions that fuel this and many other poorly-researched FUD articles that will continue to propagate.
#Bitfinex#Stablecoins#Tether#Fintech#CryptoAssets#DFC
·bitcoinmagazine.com·
Debunking“The Bit Short”
Don’t Bank on Covid-19 Killing Off Cash Just Yet
Don’t Bank on Covid-19 Killing Off Cash Just Yet
The U.S. is unlikely to allow most businesses to abandon cash payments because of concerns about consumers lacking access to or familiarity with digital payment methods. These include senior citizens, undocumented immigrants, people who can’t qualify for credit cards or afford smartphones, and the millions of households that lack bank accounts. New York City, Philadelphia, New Jersey and San Francisco have passed legislation requiring most stores and restaurants to accept cash. Meanwhile, people still like to have physical dollars and cents. Although people in the U.S. were using cash less in transactions, they were holding more of it as a store of value, a May Fed survey found.
#Fintech#CryptoAssets#CBDC#Cash#DFC
·wsj.com·
Don’t Bank on Covid-19 Killing Off Cash Just Yet
Ulrich Bindseil on the launch of the digital euro
Ulrich Bindseil on the launch of the digital euro
The European Central Bank (ECB) has made clear that banknotes are here to stay. Even if you cannot use banknotes for e-commerce, you could still hoard them at home as a store of value. And the ECB is not only committed to issuing banknotes, but also to supporting the efforts of the European Commission and others to maintain the usability of banknotes. The ECB has no intention at all to make banknotes disappear, but the opposite. Hence, there is no intention to use negatively-renumerated central bank digital currency (CBDC) to help monetary policy below the effective lower bound on policy rates. However, one could imagine a tiering system where citizens can hold up to a certain amount – for example, €3,000 – for which remuneration would never be negative, while for holdings beyond that, an interest rate would be applied which would be below other risk-free liquid investments, and possibly negative.
#Fintech#CryptoAssets#CBDC#DFC
·centralbanking.com·
Ulrich Bindseil on the launch of the digital euro
Central bank digital currencies risk becoming a gigantic flop
Central bank digital currencies risk becoming a gigantic flop
This VoxEU/CEPR article argues that there is no obvious justification for retail central bank digital currency (CBDC) in most advanced economy (AE) jurisdictions where a large share of the population has access to bank accounts. From a user perspective, such CBDC do not seem attractive enough to compete successfully with private bank deposits and private retail payment systems like PayPal. The key advantage of CBDC, its absolute safety, is irrelevant for retail payments. However, for emerging and developing economies (EMDEs), retail CBDC could be a suitable tool to approach the problem of a large share of the population being unbanked. However, in both AE and EMDE jurisdictions, there is a huge potential for wholesale CBDC as a store of value for retail payment service providers.
#Fintech#CryptoAssets#CBDC#wCBDC#DFC
·voxeu.org·
Central bank digital currencies risk becoming a gigantic flop
China central bank urges wider acceptance of cash as payments go digital | Reuters
China central bank urges wider acceptance of cash as payments go digital | Reuters
On December 15, 2020, the Peoples' Bank of China has called for wider acceptance of cash in economic activities and vowed to punish those who refuse to accept cash payments in the wake of a widening gap in access to digital services. http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/4144232/index.html
#Fintech#Cash#DFC
·reuters.com·
China central bank urges wider acceptance of cash as payments go digital | Reuters
The Digital Divide at the Heart of Financial Inclusion
The Digital Divide at the Heart of Financial Inclusion
The KYC/AML requirements of the VASPs would largely block off the potential inclusion of the 1.7+ billion who are already unbanked, creating simply a new digital version of the exclusive system we have now. Unhosted wallets could help solve this problem by catering to refugees, small-holder farmers and other vulnerable populations around the world by facilitating smaller transaction amounts and account balances; activities consistent with the financial reality in many of the places where we work.
#Fintech#CryptoAssets#CBDC#FinancialInclusion#DFC
·medium.com·
The Digital Divide at the Heart of Financial Inclusion
Eswatini Central Bank Digital Currency diagnostic study
Eswatini Central Bank Digital Currency diagnostic study
"In 2019, the Central Bank of Eswatini (CBE) became one of the first Central Banks in sub-Saharan Africa to consider the potential and feasibility of CBDC through the application of a country diagnostic. Together with Cenfri, the CBE embarked on the first part of a three-part diagnostic. This study aimed to investigate and understand whether use cases existed for the implementation of a CBDC in the region, either as a retail or wholesale variety. Our primary research questions were: 1) what value would this instrument contribute to the Eswatini financial system? And 2) is there sufficient evidence to justify further exploration into its potential pilot-testing?"
#Fintech#CryptoAssets#CBDC#DFC
·cenfri.org·
Eswatini Central Bank Digital Currency diagnostic study
A Look at Facebook's Diem Wallet- Token Sale Accepts 3 Cryptos, Strict KYC, Hefty Data Collection
A Look at Facebook's Diem Wallet- Token Sale Accepts 3 Cryptos, Strict KYC, Hefty Data Collection
Diem is offering a pre-sale discount for early investors at projectdiem.io. Anyone "can participate in the birth of diem and be one of the first buyers. Buy diem coins now with cryptocurrencies like bitcoin, ethereum, and bitcoin cash.”
#Fintech#CryptoAssets#Stablecoins#Facebook#Diem#DFC
·news.bitcoin.com·
A Look at Facebook's Diem Wallet- Token Sale Accepts 3 Cryptos, Strict KYC, Hefty Data Collection
Issuing Central Bank Digital Currency (CBDC) Using Algorand
Issuing Central Bank Digital Currency (CBDC) Using Algorand
"Investigate Algorand’s approach to issuing retail CBDC, including a detailed overview of relevant design considerations and examples of use cases facilitated by the Algorand platform. In particular, we present the critical use cases of issuing CBDC when connectivity is limited and adjustable privacy requirements for low- and high-value transactions."
#Fintech#CryptoAssets#CBDC#Algorand#DFC
·info.algorand.com·
Issuing Central Bank Digital Currency (CBDC) Using Algorand
China's digital developments
China's digital developments
The BSN is a cross-cloud, cross-portal, cross-framework global infrastructure network used to deploy and operate all types of blockchain applications. It provides a shared blockchain resource environment with the twin goals of reducing the cost of technology adoption and supporting interoperability between different blockchain applications (DApps).
#Fintech#CryptoAssets#Blockchain#CBDC#China#DFC
·linkedin.com·
China's digital developments
Facebook's Diem Testnet Hits 50 Million Transactions
Facebook's Diem Testnet Hits 50 Million Transactions
The testnet for Diem reached over 50 million transactions on January 27, data from blockchain explorer inDiem shows. It operates at an average throughput of over 3 transactions per second (tps). While sounding fast, this is much slower than transactions on both Bitcoin (4.6 tps) and Ethereum (15 tps), and much slower to the speeds on upcoming networks like Solana (65,000 tps). In terms of testnet users, over 221,000 individual addresses have interacted with Diem in some capacity.
#Fintech#CryptoAssets#Stablecoins#Facebook#DFC
·decrypt.co·
Facebook's Diem Testnet Hits 50 Million Transactions
Stabilized: OCC settles debate about regulatory characterization of bank-issued stablecoins
Stabilized: OCC settles debate about regulatory characterization of bank-issued stablecoins
On January 4, 2021, the Chief Counsel of the Office of the Comptroller of the Currency ("OCC") issued an interpretive letter ("IL 1174") on the permissibility of national banks to use independent node verification networks ("INVN") and stablecoins for payment activities. In particular, "[n]ational banks … may use new technologies, including … stablecoins, to perform bank permissible activities, such as payment activities." The letter, when coupled with other OCC interpretations, now firmly places the issuance and use of stablecoins as permissible bank activities. While stablecoins may also be securities under certain circumstances, there is a well-defined line of case law, including from the Supreme Court, about the factors to apply when determining whether a product that has characteristics of both a banking product and a security is one or the other (or both). Therefore, issuers and investors may now apply the age-old factors to bank-issued stablecoins and be comfortable about the regulatory characterization of the ultimate product.
#Fintech#CryptoAssets#Stablecoins#DFC
·whitecase.com·
Stabilized: OCC settles debate about regulatory characterization of bank-issued stablecoins
Permissioned distributed ledgers and the governance of money
Permissioned distributed ledgers and the governance of money
A BIS paper explores the economics and optimal design of "permissioned" distributed ledger technology (DLT) in a credit economy. Designated validators verify transactions and update the ledger at a cost that is derived from a supermajority voting rule, thus giving rise to a public good provision game. Without giving proper incentives to validators, however, their records cannot be trusted because they cannot commit to verifying trades and they can accept bribes to incorrectly validate histories. Both frictions challenge the integrity of the ledger on which credit transactions rely. In this context, the examines the conditions under which the process of permissioned validation supports decentralized exchange as an equilibrium, and analyze the optimal design of the trade and validation mechanisms. It solves for the optimal fees, number of validators, supermajority threshold and transaction size. A stronger consensus mechanism requires higher rents be paid to validators. The results suggest that a centralized ledger is likely to be superior, unless weaknesses in the rule of law and contract enforcement necessitate a decentralized ledger.
#Fintech#CryptoAssets#Blockchain#CBDC#DFC
·bis.org·
Permissioned distributed ledgers and the governance of money
Ready, steady, go? - Results of the third BIS survey on central bank digital currency
Ready, steady, go? - Results of the third BIS survey on central bank digital currency
Most central banks are exploring central bank digital currency (CBDC) according to the third annual Bank for International Settlements (BIS) survey. Central banks are progressing from conceptual research to practical experimentation, but most have no plans to issue CBDCs in the foreseeable future. However, central banks collectively representing a fifth of the world's population are likely to launch retail CBDCs in the next three years. The Covid19 pandemic has added new motivations to this journey.
#Fintech#CryptoAssets#CBDC#DFC
·bis.org·
Ready, steady, go? - Results of the third BIS survey on central bank digital currency
Circle APIs now Support ACH Payments and Payouts
Circle APIs now Support ACH Payments and Payouts
"Circle APIs offer major payment rails like cards, wires and blockchain transfers — offering multiple ways for users to transfer money and transact with USDC, the world’s fastest growing dollar stablecoin. Today, Circle is adding ACH as a payment rail, with comprehensive support available across both Payments and Payouts products. Customers can enable their users to make and receive payments using ACH, with seamless conversions into and out of USDC."
#Fintech#CryptoAssets#Stablecoins#USDC#DFC
·circle.com·
Circle APIs now Support ACH Payments and Payouts
All risk, no gain? The vague definition of stablecoins is causing problems
All risk, no gain? The vague definition of stablecoins is causing problems
"The word "stablecoin" can be used as a logical description for “a cryptocurrency designed to have low price volatility” and has “stores of value or units of account,” or “a new type of cryptocurrency that often have their value pegged to another asset… designed to tackle the inherent volatility seen in cryptocurrency prices,” or a currency that can “act as a medium of monetary exchange and a mode of storage of monetary value, and its value should remain relatively stable over longer time horizons.”"
#Fintech#CryptoAssets#Stablecoins#DFC
·cointelegraph.com·
All risk, no gain? The vague definition of stablecoins is causing problems