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US Government to Use USDC Stablecoin to Bypass Venezuela's Maduro
US Government to Use USDC Stablecoin to Bypass Venezuela's Maduro
Circle, which along with Coinbase issues the USDC stablecoin, is coordinating with the US government and Latin America crypto exchange Airtm to route aid for Venezuelan healthcare workers through the Latin American country's government in exile. The US Treasury and Federal Reserve releases seized funds to the exiled government’s account at a US bank. The exiled government then uses those funds to mint USDC. The USDC is then sent to Airtm Once the USDC stablecoins hit Airtm wallets, they go to Venezuela healthcare workers in the form of AirUSD, Airtm's own fiat-backed stablecoin. Recipients can then withdraw at banks, send the funds, or spend them online.
#Fintech#CryptoAssets#Stablecoins#Circle#USDC#Venezuela#DFC
·decrypt.co·
US Government to Use USDC Stablecoin to Bypass Venezuela's Maduro
Private Bank Money vs Central Bank Money: A Historical Lesson for CBDC Introduction
Private Bank Money vs Central Bank Money: A Historical Lesson for CBDC Introduction
In this paper, a unique event is studied: the opening of Bank of Canada in 1935, the central bank note issuance monopoly and its impact on the note issuing chartered banks. Between 1935-1950, Canadian chartered banks had to gradually withdraw their notes from circulation. In a difference-in-differences analysis, it shows that chartered banks constrained by new issuance limits experienced higher volatility of return-on-equity in the short run and lower Z-scores and return-on-assets in the longer horizon, suggesting that note issuance was an important source of revenue for private banks and allowed them to smooth the profits. The effect on lending is either non-significant or ambiguous. This study of central bank cash implementation can offer lessons for the current debates on a new form of central bank money - central bank digital currencies - and their potential impacts on commercial banks.
#Fintech#CryptoAssets#CBDC#DFC
·portal.research.lu.se·
Private Bank Money vs Central Bank Money: A Historical Lesson for CBDC Introduction
Top Japanese banks, companies to test private digital currency next year
Top Japanese banks, companies to test private digital currency next year
More than 30 major Japanese firms, including banks such as MUFG, Sumitomo Mitsui and Mizuho, are reportedly set to trial a common, private digital currency next year to improve payments. Other group members include NTT, Accenture, Daiwa Securities, and Nomura. Observers of the initiative include government agencies of the country, such as the Bank of Japan and the Financial Services. Agency.https://news.decurret.com/hc/ja/article_attachments/360100063753/___________.pdf
#Fintech#CryptoAssets#Stablecoins#DFC
·theblockcrypto.com·
Top Japanese banks, companies to test private digital currency next year
South Africa ditches paper cheques
South Africa ditches paper cheques
The South African Reserve Bank (SARB), Financial Sector Conduct Authority (FSCA), Payments Association of South Africa (PASA) and the Banking Association South Africa (BASA) are jointly communicating to the public that the issuing and the acceptance/collection of cheques will cease, effective from 31 December 2020. https://www.resbank.co.za/Publications/Detail-Item-View/Pages/Publications.aspx?sarbweb=3b6aa07d-92ab-441f-b7bf-bb7dfb1bedb4&sarblist=21b5222e-7125-4e55-bb65-56fd3333371e&sarbitem=10388
#Fintech#Cash#Payments#DFC
·finextra.com·
South Africa ditches paper cheques
BoE's Cunliffe: Not our job to protect banks against digital currencies
BoE's Cunliffe: Not our job to protect banks against digital currencies
Bank of England Deputy Governor Jon Cunliffe said it was not his job to protect banks from the impact of future digital currencies, which could dramatically reduce households’ willingness to hold money in traditional bank accounts. “Our job is not to protect bank business models,” Cunliffe said at an online seminar. “Banks will have to adjust. Our job is to ensure that if bank business models change, we manage the financial and macro-economic consequences of that.”
#Fintech#CryptoAssets#CBDC#DFC
·reuters.com·
BoE's Cunliffe: Not our job to protect banks against digital currencies
Retail CBDC Remuneration: The Sign Matters
Retail CBDC Remuneration: The Sign Matters
This Banque de France paper lists the main options central banks would be faced with when defining their policies regarding the remuneration of retail central bank digital currency (CBDC). It assesses qualitatively the impacts of the choices made on the likely areas of interest for central banks, showing that whether the policy rate and/or the rate on CBDC is positive or null or strictly negative matters. Eventually, the two main policies that stand out are to issue a “banknote-like” CBDC, i.e. not to remunerate it, or to do so following a rule derived from the central bank’s interest rate policy for excess reserves.
#Fintech#CryptoAssets#CBDC#DFC
·suerf.org·
Retail CBDC Remuneration: The Sign Matters
Wyoming Issues Second Crypto Bank Charter
Wyoming Issues Second Crypto Bank Charter
Wyoming recently awarded its second special-purpose depository institution (SPDI) charter to Avanti Bank. One of the most notable products that Avanti intends to offer is the “Avit” stablecoin "disruptor." Avanti Bank's Avit will be a tokenized, programmable US dollar. Becasue Avit will be issued by, and be a direct obligation of, a bank, making it an electronic version of a traditional bank note. This means the Avit can be used in software applications like other stablecoins but may be considered more reliable than traditional stablecoins because users can trust that the deposits backing the Avit are held in the same state chartered financial institution that issued the instrument. Critically, if the Avit is a bank note it is also exempt from regulation as a security by the SEC. One legal wrinkle is that Article 3 of the Uniform Commercial Code (UCC), which governs bank notes, has never before been directly extended to electronic negotiable instruments such as digital bank notes. Nevertheless, there is an argument that Article 3 provides the necessary legal framework for banks to issue a variety of electronic negotiable instruments, including digital certificates of deposits. One could argue that a bank issuing a product with features similar to a stablecoin is really just a new form of a traditional bank activity.
#Fintech#CryptoAssets#Stablecoins#Avanti#DFC
·blockchainlegalresource.com·
Wyoming Issues Second Crypto Bank Charter
Lebanon to launch digital currency in face of economic and financial turmoil
Lebanon to launch digital currency in face of economic and financial turmoil
Banque du Liban Governor Riad Salameh reportedly said that the central bank plans to launch a digital currency(CBDC) in 2021 as part of a broader effort to combat a parallel economic and financial crisis that has engulfed the country. The Governor Salameh added that a CBDC will help implement a cashless financial system to enhance the flow of money locally and abroad. http://nna-leb.gov.lb/ar/show-news/513061/
#Fintech#CryptoAssets#CBDC#DFC
·cointelegraph.com·
Lebanon to launch digital currency in face of economic and financial turmoil
An early stablecoin? The Bank of Amsterdam and the governance of money
An early stablecoin? The Bank of Amsterdam and the governance of money
This BIS paper draws lessons on the central bank underpinnings of money from the rise and fall of the Bank of Amsterdam (1609-1820). The Bank started out as a "stablecoin": it issued deposits backed by silver and gold coins, and settled payments by transfers across deposits. Over time, it performed functions of a modern central bank and its deposits took on attributes of fiat money. The economic shocks of the 1780s, large-scale lending and lack of fiscal support led to its failure. Using monthly balance sheet data, we show how confidence in Bank money gave way to a run equilibrium, where the fall of the premium on deposits over coins ("agio") into negative territory was swift and precipitous. This holds lessons for the governance of digital money.
#Fintech#CryptoAssets#Stablecoins#DFC
·bis.org·
An early stablecoin? The Bank of Amsterdam and the governance of money
Central Bank Digital Currency: A Literature Review
Central Bank Digital Currency: A Literature Review
The Fed published an article that compiles research exploring the potential impact of central bank digital currency (CBDC) on commercial banking and monetary policy. The review provides a theoretical underpinning for understanding how CBDC could influence consumer adoption and financial stability. It concludes that the models and assumptions in the literature so far provide streamlined frameworks to answer questions about the effects of CBDC at the micro- and macro-levels, while abstracting from many of the complex design issues of interest to policymakers. Avenues for future work include further exploring how the intrinsic features of CBDC as a means of payment and store of value affect the set of feasible allocations in the economy and, in turn, affect its value to heterogeneous households.
#Fintech#CryptoAssets#CBDC#DFC
·federalreserve.gov·
Central Bank Digital Currency: A Literature Review
Stablecoin Regulation in The United States
Stablecoin Regulation in The United States
In light of their cross-border nature, stablecoin projects must work with regulators around the world to determine the appropriate regulatory treatment of this relatively new asset class.  With this in mind, this article seeks to provide an overview of how U.S. regulators are approaching the evolving world of stablecoins.
#Fintech#CryptoAssets#Stablecoins#Regulation#DFC
·legal500.com·
Stablecoin Regulation in The United States
Central bank digital currency and real-time payments
Central bank digital currency and real-time payments
Norges Bank published a third report on central bank digital currency (CBDC) and the Bank will publish another report early next year, after which it will decide how to proceed with its CBDC work. However, the prospective introduction of a CBDC is still some way off. The lack of urgency reflects the Bank's view so far that there is no acute need to introduce it.
#Fintech#CryptoAssets#CBDC#DFC
·norges-bank.no·
Central bank digital currency and real-time payments
The demand for safe liquid assets and the implications of issuing a Central Bank Digital Currency for bank funding instruments
The demand for safe liquid assets and the implications of issuing a Central Bank Digital Currency for bank funding instruments
Norges Bank published a third report on central bank digital currency (CBDC) and the Bank will publish another report early next year, after which it will decide how to proceed with its CBDC work. However, the prospective introduction of a CBDC is still some way off. The lack of urgency reflects the Bank's view so far that there is no acute need to introduce it. The latest paper considers the potential impact on the stability of the financial system through the effect of CBDC issuance on bank funding markets. It concludes that CBDC has the potential to substantially crowd out bank funding instruments due to its superior safety features.
#Fintech#CryptoAssets#CBDC#DFC
·norges-bank.no·
The demand for safe liquid assets and the implications of issuing a Central Bank Digital Currency for bank funding instruments
BitMint Digital Payment Without Network Communication
BitMint Digital Payment Without Network Communication
Identity-bearing digital money can be paid in a private transaction between payor and payee without reliance on network authentication. The payee must trust that the paid digital coin is bona fide. Presenting a hard wallet (HW) to generate the required trust. Payment issued from the HW can be taken in by a second hard wallet, which will further pay to a third hard wallet, creating a payment ecology of digital money for long periods without the benefit of a communication network. Payment may be tethered to eventual terms of redemption. The hard wallet may be personalized -- fitted with ownership security capability. The HW may be engineered in conjunction with a smart phone, so people can use a single device as a phone and as an off-line wallet.
#Fintech#CryptoAssets#CBDC#BitMint#UADs#DFC
·ieeexplore.ieee.org·
BitMint Digital Payment Without Network Communication
A model for central bank digital currencies: Do CBDCs disrupt the financial sector?
A model for central bank digital currencies: Do CBDCs disrupt the financial sector?
While central bank digital currency (CBDC) offers several benefits, many suggest they might disintermediate commercial banks and facilitate bank runs. To analyze these concerns, this paper uses a New Keynesian DSGE framework to study the effects of interest- and non-interest-bearing CBDCs in times of financial crises and their interaction with the zero lower bound (ZLB). Additionally, it studies the role of central bank funding and a rule-based interest rate on CBDCs. It finds that CBDCs indeed crowd out bank deposits and affect bank funding. However, this crowding-out effect is not necessarily a threat to financial stability and a cause for economic disturbances when the central bank chooses an adequate policy.
#Fintech#CryptoAssets#CBDC#DFC
·papers.ssrn.com·
A model for central bank digital currencies: Do CBDCs disrupt the financial sector?
Payments go (even more) digital
Payments go (even more) digital
This commentary looks at the payments landscape through the lens of the Committee on Payments and Market Infrastructures (CPMI) 2019 Red Book statistics. It shows how consumers are increasingly shifting from physical to digital instruments, promoting efficient, faster and more convenient payments. However, cash, and in some jurisdictions, other paper-based payments such as cheques remain important payment instruments. In more than half of the CPMI jurisdictions, "cash is still king" and its circulation continues to grow. In the same time frame, more than half of the CPMI countries have experienced a switch from physical payment instruments to digital payments.
#Fintech#Payments#Cash#DFC
·bis.org·
Payments go (even more) digital
Mastercard President Says Crypto Patents Will Pay Off When Central Bank Digital Currencies Arrive
Mastercard President Says Crypto Patents Will Pay Off When Central Bank Digital Currencies Arrive
Mastercard President Michael Miebach said the payments processor’s massive trove of cryptocurrency patents will give it an edge once central bank digital currency (CBDC) debuts, during the firm's Q3 2020 earnings call. "The link into an acceptance network is critical" for a CBDC, he said. "So we hold some patents in [the crypto] space that link these transactions right back into our network where it can be used. And this is how we can bring value, and it brings value to us."
#Fintech#CryptoAssets#CBDC#MasterCard#DFC
·coindesk.com·
Mastercard President Says Crypto Patents Will Pay Off When Central Bank Digital Currencies Arrive
PayPal crypto services to go global early 2021, support for CBDCs coming
PayPal crypto services to go global early 2021, support for CBDCs coming
Senior Paypal executives revealed further details about its plans to aggressively push into the crypto sector next year during the firm’s Q3 2020 earnings call, including plans to support central bank digital currency (CBDC). PayPal’s chief executive said that through its scale and prominence, the company will “help shape the utility of CBDCs” including facilitating interoperability with existing payment rails and fostering acceptance among merchants. Shulman also described the legacy financial system as “not working” for many ordinary people.
#Fintech#CryptoAssets#CBDC#PayPal#DFC
·cointelegraph.com·
PayPal crypto services to go global early 2021, support for CBDCs coming
Cambodia officially launches quasi-CBDC
Cambodia officially launches quasi-CBDC
So does quasi CBDC = synthetic CBDC? "Bakong does not give users direct access to central bank money, but bakong balances must be matched by banks’ deposits with the NBC, giving bakong a “cash-like” quality. Furthermore, payments are settled instantly across the central bank’s systems."
#Fintech#CryptoAssets#CBDC#PaymentSystems#DFC
·centralbanking.com·
Cambodia officially launches quasi-CBDC
Christine Lagarde invites public comments on eurozone CBDC
Christine Lagarde invites public comments on eurozone CBDC
ECB President Christine Lagarde invited public commentary on a potential eurozone central bank digital currency (CBDC). “We are still in the review and considerations stage, but we’ve just launched a public consultation so that consumers and Europeans can actually express their preference and tell us whether they would be happy to use a digital Euro just in the way they use a Euro coin or a Euro banknote knowing that it is central bank money that is available and that they can rely upon.” The survey can be accessed here: https://epsilon.escb.eu/limesurvey3/434111?lang=en
#Fintech#CryptoAssets#CBDC#DFC
·cointelegraph.com·
Christine Lagarde invites public comments on eurozone CBDC
Consensys Selected as Technology Partner by the Bank of Thailand for CBDC Project
Consensys Selected as Technology Partner by the Bank of Thailand for CBDC Project
ConsenSys has joined the Bank of Thailand to explore the potential of blockchain technology in the development of a proof-of-concept prototype for a Central Bank Digital Currency (CBDC) project, alongside SCG and Digital Ventures (DV). The private-permissioned network on Hyperledger Besu will be designed to meet both the functional and non-functional requirements of a retail CBDC. One of the business cases will test the use of a CBDC to simulate daily commerce, automate payments, and support procurement and financial management system called Procure-to-Pay (B2P) developed by DV. In the exploration, CBDC will be tested and issued using ERC20 smart contracts. In partnership with Thailand partner Atato, ConsenSys will architect a solution using its Enterprise Ethereum stack, including ​Codefi​ and ​MetaMask​
#Fintech#CryptoAssets#CBDC#Ethereum#ConsenSys#DFC
·consensys.net·
Consensys Selected as Technology Partner by the Bank of Thailand for CBDC Project
Digital money – the Riksbank’s e-krona pilot
Digital money – the Riksbank’s e-krona pilot
Sweden's Riksbank provided a brief update on the e-krona pilot it is conducting in partnership with Accenture. The pilot project’s technical solution is based on distributed ledger technology (DLT). It is based on a distribution model in which only the Riksbank can create e-kronas, which are then distributed to the general public via participants in the e-krona network, for example banks and payment service providers. The solution will be evaluated in a test environment that will simulate the Riksbank’s internal systems, participants in the network and end users, such as consumers and merchants.
#Fintech#CryptoAssets#CBDC#DFC
·riksbank.se·
Digital money – the Riksbank’s e-krona pilot
CBDC architectures, the financial system, and the central bank of the future
CBDC architectures, the financial system, and the central bank of the future
This column updates a recent BIS Quarterly Review article on central bank digital currency (CBDC) architectures, how they could complement existing payment options, and what they imply for the financial system and central bank of the future. They pinpoint the key trade-off for central banks in the digital era: they can operate either complex technical infrastructures (in the single-tier business model) or complex supervisory regimes (two-tier). There are many ways to do so, but all will require the central bank to develop substantial technological expertise.
#Fintech#CryptoAssets#CBDC#DFC
·voxeu.org·
CBDC architectures, the financial system, and the central bank of the future
Central bank digital currencies: Drivers, approaches, and technologies
Central bank digital currencies: Drivers, approaches, and technologies
Central bank digital currencies are in the limelight. Yet the motives for issuance and, relatedly, the policy approaches and designs differ. This column surveys the drivers, policy approaches and technical designs, based on a comprehensive and publicly available database. It finds that all Central bank digital currency projects aim to complement cash rather than replace it. Many projects would allow for an important role of the private sector in the payment system. (This is a summary of a previously-published working paper: https://www.bis.org/publ/work880.htm)
#Fintech#CryptoAssets#CBDC#DFC
·voxeu.org·
Central bank digital currencies: Drivers, approaches, and technologies
The Madagascar e-Ariary CBDC project in a few lines
The Madagascar e-Ariary CBDC project in a few lines
The Central Bank of Madagascar is considering issuing retail central bank digital currency (CBDC). The e-Ariary project will be carried out in two phases; (i) conduct analysis, design work and experimentation, and (ii) deployment and production, the realisation of the second phase conditioned by the results of the experimental phase.
#Fintech#CryptoAssets#CBDC#DFC
·banky-foibe.mg·
The Madagascar e-Ariary CBDC project in a few lines
Two Types of Postal Banking
Two Types of Postal Banking
Why does the U.S. Postal Service (USPS) need to be involved at all in reaching the unbanked if a brick & mortar branch network isn’t important? It doesn’t. Any government agency could probably fill the role. In fact, the U.S. Treasury is already a major provider of a limited range of banking services via its Direct Express prepaid debit card. Rather than starting a new government debit card program from scratch, building off of and improving the Direct Express card would probably make more sense. On the other hand, USPS is a well-known brand. A prepaid card with the USPS logo on it would probably better stand out on a card rack than the Treasury’s brand.
#Fintech#CBDC#DFC
·aier.org·
Two Types of Postal Banking
JPMorgan creates blockchain unit, says the technology nears profits
JPMorgan creates blockchain unit, says the technology nears profits
JPMorgan Chase's JPM Coin digital currency JPM is being used commercially for the first time this week by a large technology client to send payments around the world. That development, along with other behind-the-scene moves, persuaded JPMorgan to create a new business to house its blockchain and digital currency efforts called Onyx. https://www.jpmorgan.com/onyx/index
#Fintech#CryptoAssets#Stablecoins#JPMCoin#DFC
·cnbc.com·
JPMorgan creates blockchain unit, says the technology nears profits