DFC

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Jean-Michel Godeffroy on Central Bank Digital Currencies – On the level
Jean-Michel Godeffroy on Central Bank Digital Currencies – On the level
The risks of issuing CBDC relate mostly to the lack of information about the latent demand for CBDC. If this demand is very low, for example because deposit insurance has blurred the difference between private money and central bank money, then central banks run a reputation risk in investing energy and money in a project with no future. If, on the contrary, demand for CBDC is very high, it would trigger bank disintermediation which could ultimately create financial stability problems and possibly impact on economic growth. This explains why central banks are very prudent! The risks of not issuing CBDC is the risk of leaving the payment system entirely in the hands of the private sector, and to rely only on regulation and supervision to solve competition and efficiency issues.
#Fintech#CryptoAssets#CBDC#DFC
·oecdonthelevel.com·
Jean-Michel Godeffroy on Central Bank Digital Currencies – On the level
Tether’s backing could be disclosed later this year
Tether’s backing could be disclosed later this year
Tether insiders Paolo Ardoino and Stuart Hoegner said they may reveal full details of the reserves backing the controversial digital dollar some time later this year. “We are contemplating providing an update on tether’s asset backing during 2021,” said Hoegner, speaking on the What Bitcoin Did podcast. Hoegner is general counsel for Tether and its affiliated entity, cryptocurrency exchange Bitfinex, while Ardoino is the chief technical officer for both.
#Fintech#CryptoAssets#Stablecoins#Tether#Bitfinex#DFC
·newmoneyreview.com·
Tether’s backing could be disclosed later this year
UK Treasury Paper Says Stablecoins Play “Important Role” in Economy
UK Treasury Paper Says Stablecoins Play “Important Role” in Economy
The U.K. Treasury paper said that if appropriate standards and regulations were met, certain stablecoins could play an important role in retail and cross-border payments (including settlements). “This means they would have the potential to deliver benefits of distributed ledger technology such as speed, efficiency, and resilience,” the paper stated.
#Fintech#CryptoAssets#Stablecoins#Regulation#DFC
·decrypt.co·
UK Treasury Paper Says Stablecoins Play “Important Role” in Economy
UK regulatory approach to cryptoassets and stablecoins: consultation and call for evidence
UK regulatory approach to cryptoassets and stablecoins: consultation and call for evidence
The U.K. government published a consultative paper seeking views on how it can ensure its regulatory framework is equipped to harness the benefits of new technologies, supporting innovation and competition, while mitigating risks to consumers and stability. Additionally, this document includes a call for evidence on investment and wholesale uses of crypto-assets, and the broader use of distributed ledger technology (DLT) in financial markets. The consultation closes on March 21, 2021.
#Fintech#CryptoAssets#Stablecoins#Regulation#DFC
·gov.uk·
UK regulatory approach to cryptoassets and stablecoins: consultation and call for evidence
The Impact of Digital Currency on the Future of Payments
The Impact of Digital Currency on the Future of Payments
Money is the indispensable lubricant of our modern global economy and society. The emergence of Central Bank Digital Currencies (CBDCs) as a new form of money is therefore a development of profound importance. It will transform a key element upon which the livelihoods of peoples around the world depend. This is a global phenomenon. The engines of its progress are, in the early stages, being ignited by and within individual jurisdictions. From these starting points, its impact will extend beyond physical boundaries, to be felt across the emerging digital landscape. (Whitechapel Think Tank)
#Fintech#CryptoAssets#CBDC#Stablecoins#PaymentSystems#Payments#DFC
·whitechapelthinktank.co.uk·
The Impact of Digital Currency on the Future of Payments
U.S. OCC Says Banks Can Conduct Payments Using Stablecoins
U.S. OCC Says Banks Can Conduct Payments Using Stablecoins
The U.S. Office of the Comptroller of the Currency (OCC) clarified that national banks and federal savings associations may participate in independent node verification networks (INVN) and use stablecoins to conduct payment activities and other bank-permissible functions. The OCC said INVNs “may be more resilient than other payment networks” due to the large number of nodes needed to verify transactions, which can in turn limit tampering.
#Fintech#CryptoAssets#Stablecoins#Regulation#Payments#DFC
·occ.gov·
U.S. OCC Says Banks Can Conduct Payments Using Stablecoins
Ukrainian Ministry of Digital Transformation to facilitate CBDC infrastructure with the Stellar
Ukrainian Ministry of Digital Transformation to facilitate CBDC infrastructure with the Stellar
The Ministry of Digital Transformation of Ukraine and the Stellar Development Foundation signed a Memorandum of Understanding and Cooperation, within which they will work on the development of a strategy for virtual assets in Ukraine. The focus of the partnership will be on development of virtual asset markets, implementing stablecoin and regulation, and developing the Central Bank in Ukraine's digital currency (e-hryvnia).
#Fintech#CryptoAssets#CBDC#Stellar#DFC
·thedigital.gov.ua·
Ukrainian Ministry of Digital Transformation to facilitate CBDC infrastructure with the Stellar
Shenzhen to Double Digital Yuan Giveaway in China's Latest Lottery Test
Shenzhen to Double Digital Yuan Giveaway in China's Latest Lottery Test
Shenzhen is giving residents the chance to win 20 million digital yuan in its another “red envelope” giveaway. On January 1, 2021 the lottery opened, allowing the city's residents to register through the "i Shenzhen" platform to be included in the draw. The lottery is aimed to test China's in-development central bank digital currency (CBDC) in the hands of the public. A total of 100,000 red envelopes will be distributed, with winners to be awarded 200 digital yuan each to spend from January 7 to 17 at around 10,000 physical merchants. https://mp.weixin.qq.com/s/6-h75iHj-P5mNYyy-krn9w
#Fintech#CryptoAssets#CBDC#DFC
·coindesk.com·
Shenzhen to Double Digital Yuan Giveaway in China's Latest Lottery Test
Cash Like Features Of Central Bank Digital Currencies Can Enhance Financial Inclusion, Privacy, And Disaster Readiness
Cash Like Features Of Central Bank Digital Currencies Can Enhance Financial Inclusion, Privacy, And Disaster Readiness
Vipin Bharathan does a deep dive into a recent paper published by Visa that describes a P2P offline payments solution that addresses occasional offline needs. The offline balance on the protected device is created during an online session, and consistency with the accounting system is achieved upon reconnection to the network. The solution depends on an offline payment system protocol that prevents double-spending using digital signatures generated in the trusted execution environments (TEEs) available on most modern smart mobile devices (but perhaps not featurephones?). https://arxiv.org/abs/2012.08003
#Fintech#CryptoAssets#CBDC#DFC
·forbes.com·
Cash Like Features Of Central Bank Digital Currencies Can Enhance Financial Inclusion, Privacy, And Disaster Readiness
Rising demand for programmable payments
Rising demand for programmable payments
A joint study by the German Federal Ministry of Finance and the Deutsche Bundesbank concluded that demand for programmable payments is rising in Germany. Smart contracts could be incorporated into conventional payment systems, but the extent to which they can be implemented and applied is limited. However, tokenized commercial bank money and central bank digital currency could bring the greatest functional benefit in terms of settling programmable payments. Both options are well-suited settlement solutions for programmable payments on account of the expected credibility of their issuers and their use within a binding legal framework.
#Fintech#CryptoAssets#Stablecoins#CBDC#SmartContracts#DFC
·bundesbank.de·
Rising demand for programmable payments
Japanese Internet Giant Licensed to Issue First JPY-Pegged Stablecoin in New York
Japanese Internet Giant Licensed to Issue First JPY-Pegged Stablecoin in New York
The New York Department of Financial Services has issued a trust charter to GMO-Z.com Trust Company Inc., allowing it to issue, administer, and redeem Japanese yen and U.S. dollar-pegged stablecoins in New York. Including the charter granted to GMO, to date DFS has approved 27 charters and licenses for companies engaged in virtual currency business activity. https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202012291
#Fintech#CryptoAssets#Stablecoins#Regulation#DFC
·coindesk.com·
Japanese Internet Giant Licensed to Issue First JPY-Pegged Stablecoin in New York
Losing Contact: The Impact of Contactless Payments on Cash Usage
Losing Contact: The Impact of Contactless Payments on Cash Usage
This study investigates whether contactless credit cards are an important contributor to the decline in cash transactions, based on Canadian panel data from 2010 to 2017. It shows that unobserved factors influence cash use, and these must be controlled for when estimating the impact of contactless credit cards on cash use. It also shows the different effects that contactless credit cards have on the choice to pay with cash (the extensive margin) and on how much cash is used (the intensive margin). The study finds that the use of contactless credit cards negatively influences how much cash is spent but not whether to pay in cash. Overall, the impact of contactless credit cards on the transactional demand for cash in Canada is small over the 2010–17 period, at about 3 percent. These results are in line with previous findings for Canada and elsewhere.
#Fintech#CBDC#Cash#ContactLessPayment#DFC
·bankofcanada.ca·
Losing Contact: The Impact of Contactless Payments on Cash Usage
Markets for Crypto Tokens, and Security under Proof of Stake
Markets for Crypto Tokens, and Security under Proof of Stake
Cryptocurrency systems based on proof of stake (PoS) grant governance rights to the holders of currency tokens and therefore are vulnerable to attack by adversaries who buy tokens in order to gain control. To evaluate the robustness of PoS cryptocurrencies to such attacks, we model the market for tokens and determine how the cost of attacking the system depends on the level and shape of token supply and demand. We show that, contrary to popular belief, the appreciation of tokens in response to demand by attackers plays a small role in securing the system. In particular, stablecoins can be less vulnerable to attack than cryptocurrencies that are freely floating. Moreover, PoS cryptocurrencies that primarily function as mediums of exchange are vulnerable to attack if the velocity of money is high.
#Fintech#CryptoAssets#Stablecoins#Facebook#DFC
·papers.ssrn.com·
Markets for Crypto Tokens, and Security under Proof of Stake
Dynamic Set Dollar faces “massive test” as stablecoin falls as low as $.27
Dynamic Set Dollar faces “massive test” as stablecoin falls as low as $.27
Dynamic Set Dollar and its DSD token is an algorithmic stablecoin project designed to — eventually — track the United States Dollar on a 1-1 ratio with DSD. During expansionary cycles, such as one that led DSD as high as $3 per token last week, users are rewarded with freshly-printed “rebased” tokens for providing liquidity. So far, the market seems to think Dynamic Set Dollar clears the bar. After hitting a low of $.27 earlier today, DSD has been climbing steadily since.
#Fintech#CryptoAssets#Stablecoins#DFC
·cointelegraph.com·
Dynamic Set Dollar faces “massive test” as stablecoin falls as low as $.27
Dynamic Set Dollar
Dynamic Set Dollar
The Dynamic Set Dollar (DSD) is a fully decentralized stablecoin that unlike centralized coins, e.g. USDT, has no 1:1 backing through a centralized USD treasury. To be highly capital efficient it does not use any collateral, like the main competitors DAI or sUSD. The voluntary elastic supply mechanic is different from Ampleforth (AMPL) and Based (BASED). It is inspired by Empty Set Dollar (ESD), yet responds faster to market demand through more frequent epochs, extended supply caps, and a modified supply extension/contraction formula. https://dsd.finance/
#Fintech#CryptoAssets#Stablecoins#DFC
·dynamicsetdollar.medium.com·
Dynamic Set Dollar
Why Exactly Does the World Need a Smart Banknote?
Why Exactly Does the World Need a Smart Banknote?
A smart banknote could bridge the gap between a traditional banknote and a purely electronic currency. In some sense a smart banknote is like a digital currency cold wallet that would show the value it contains when offline. A smart banknote provides all the advantages of cash and all the advantages of digital currency in one device. The still many people who do not have the bank accounts and depend on cash for their daily transactions could periodically use a smart banknote’s electronic capabilities perhaps at a retailer or public kiosk. There are places and times when there is no internet access, or even electricity, rendering electronic money and payment methods useless. Designed to work totally offline, a smart banknote would fill the gap. https://www.franklinnoll.com/smart-notes
#Fintech#CryptoAssets#CBDC#DFC
·beincrypto.com·
Why Exactly Does the World Need a Smart Banknote?
Turkey to Pilot Digital Currency Next Year
Turkey to Pilot Digital Currency Next Year
Central Bank of the Republic of Turkey Governor Naci Ağbal reportedly told members of parliament on Friday that the country plans to pilot a central bank digital currency (CBDC) in the second half of 2021. In 2019 the Bank announced that it was starting up a CBDC research and development program, and it reportedly established the Directorate-General Financial Innovation in November 2020 to carry it out. Ağbal said that the conceptual phase of this project has been completed.
#Fintech#CryptoAssets#CBDC#DFC
·decrypt.co·
Turkey to Pilot Digital Currency Next Year
China’s latest digital currency test doubles down on previous trial
China’s latest digital currency test doubles down on previous trial
China’s latest central bank digital currency (CBDC) pilot doubles down on the previous pilot, nudging merchants and consumers to embrace e-yuan. First the new system is easy to set up and use. Merchants simply download and app to their smartphones and connect the app to their bank accounts. Then they display a QR code that customers scan to make paymants. Or, merchants can use point-of-sale machines that are updated to be compatible with the e-yuan. Either way, payments via e-yuan go directly into the merchant’s bank account without any fees nor commission, while WeChat Pay or Alipay charge a fee when withdrawing from the accounts. Also, payments can be made even without an internet connection. In addition, users are compelled to use the new currency because spending in e-yuan is connected with their social credit system scores.
#Fintech#CryptoAssets#CBDC#DFC
·scmp.com·
China’s latest digital currency test doubles down on previous trial
CBDC in EU
CBDC in EU
A central bank digital currency (CBDC) is in principle a very good idea. It offers the possibility of very low-cost transactions to households and businesses, especially in securities and international transactions. More excitingly, CBDC offers us a foundation for an efficient and nimble financial system that is completely insulated from recurrent crises. But CBDC poses a puzzle, as it undercuts many of governments’ and central banks other questionable objectives. Central banks want to prop up conventional banks, who benefit from taking deposits. And governments are unlikely to want to allow the anonymity that is the great attribute of physical cash.
#Fintech#CryptoAssets#CBDC#DFC
·johnhcochrane.blogspot.com·
CBDC in EU
For Money Burners and Other Destroyers of Currency
For Money Burners and Other Destroyers of Currency
I run into some very interesting people on Twitter. For example, in a discussion on cash-like features of CBDC I came across a group that advocates money burning as a kind of religious/sacrifice thing. They think it's important that digital currency holders have the right to "burn" it. They even submitted an official response to this effect to the BoE CBDC consultation. https://docs.google.com/document/d/1v7v3FQbCkDMGUKc8aZg1ylDwHz7v1HnOI0CvtJ9ndiM/edit
#Fintech#CryptoAssets#CBDC#Cash#DFC
·burnyourmoney.org·
For Money Burners and Other Destroyers of Currency
U.S. Warns Crypto Stablecoins on Money Laundering, Risk Controls
U.S. Warns Crypto Stablecoins on Money Laundering, Risk Controls
The President’s Working Group on Financial Markets provided an initial assessment of key regulatory and supervisory considerations for participants in significant retail stablecoin arrangements with a U.S. nexus. Stablecoins should be designed to be resilient enough to handle large-scale redemptions, including ensuring a 1:1 reserve ratio and adequate financial resources to absorb losses and meet liquidity needs. Their backers should also be able to obtain and verify the identities of all parties conducting transactions, including those involving so-called unhosted wallets. https://home.treasury.gov/news/press-releases/sm1223
#Fintech#CryptoAssets#Stablecoins#Regulation#DFC
·bloomberg.com·
U.S. Warns Crypto Stablecoins on Money Laundering, Risk Controls