DFC

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PBoC seeks to revise banking law to legalize digital yuan and ban yuan-pegged tokens
PBoC seeks to revise banking law to legalize digital yuan and ban yuan-pegged tokens
The Peoples' Bank of China has included the digital yuan in the latest version of a proposed banking law, giving more legal clarity to the regulation of its national digital currency. The proposed law recognizes the renminbi in both physical and digital form. The new version will essentially also clear the way for the digital yuan to be the one and only official yuan-pegged token in mainland China by prohibiting circulation of any other yuan-pegged digital assets. Violaters of the regulation would have to forfeit any proceeds from issuing and selling of such yuan-backed digital tokens and face fines of up to five times the involved proceeds. http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/4115077/index.html
#Fintech#CryptoAssets#CBDC#Stablecoins#DFC
·theblockcrypto.com·
PBoC seeks to revise banking law to legalize digital yuan and ban yuan-pegged tokens
Eurosystem lays out retail digital payment strategy
Eurosystem lays out retail digital payment strategy
The Eurosystem is pursuing a new strategy to respond to the rapid digitalisation of the eurozone’s payments market, partly in response to the Covid-19 pandemic. Fabio Panetta, of the European Central Bank’s executive board, said the strategy would increase the provision of cash and instant payments. It would also include new supervisory methods and work on the digital euro. He said that European authorities must ensure that digital payments are underpinned by a competitive and innovative market capable of meeting consumer demand, while preserving European sovereignty. https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp201022~d66111be97.en.html
#Fintech#CryptoAssets#Payments#CBDC#FastPayments#DFC
·centralbanking.com·
Eurosystem lays out retail digital payment strategy
BSP says more groundwork needed before it can issue digital currency
BSP says more groundwork needed before it can issue digital currency
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno reportedly said that the central bank recently completed its study on issuing central bank digital currency (CBDC). It recommended continuing research, capacity-building, and the establishment of networks with central banks and institutions that are also conducting research on this scheme. The Governor said it is unlikely than one will be introduced in the near term. The study is exploratory in nature, and is in line with BSP’s Digital Payments Transformation Roadmap which aims to convert at least 50% of retail payments into digital form and that at least 70% of adult Filipinos should have a bank account by 2023.
#Fintech#CryptoAssets#CBDC#DFC
·business.inquirer.net·
BSP says more groundwork needed before it can issue digital currency
HSBC installs contactless poppy boxes across Canadian branch network
HSBC installs contactless poppy boxes across Canadian branch network
Another chapter in the death of physical cash... "HSBC is to install contactless donation boxes in all of its 250 bank branches across Canada to honour veterans in the run up to Remembrance Day. The Pay Tribute Poppy Box enables HSBC customers to tap their card of phone against a glowing poppy motif to make a $2 donation and take a badge to pin to their lapel."
#Fintech#Cash#CBDC#DFC
·finextra.com·
HSBC installs contactless poppy boxes across Canadian branch network
Centre Consortium Announces Solana as Official Chain for USDC
Centre Consortium Announces Solana as Official Chain for USDC
The Solana blockchain has become an Official Chain for USDC, continuing the expansion of USDC as an open standard and protocol for fiat digital currency on blockchains. Solana offers significant scalability and speed, delivering upwards of 50,000tps, with block production and settlement finality in 400ms, while operating with extremely low cost transaction fees at a tiny fraction of a cent.
#Fintech#CryptoAssets#Stablecoins#USDC#DFC
·medium.com·
Centre Consortium Announces Solana as Official Chain for USDC
Tether Still Dominates Stablecoins, but USDC and Dai Are Winning DeFi
Tether Still Dominates Stablecoins, but USDC and Dai Are Winning DeFi
Tether (USDT), with a market cap surpassing $16 billion, continues to hold the lion’s share of stablecoins in circulation, but two smaller rivals are trouncing it in crypto’s hottest market this year, decentralized finance (DeFi). Measured by the total value locked in six of the most popular DeFi protocols – Compound, Maker, Uniswap, Curve, Aave and Balancer – USD coin (USDC) is in the lead among stablecoins followed by dai (DAI), the native stablecoin to MakerDAO. USDC and DAI have market caps of $2.74 billion and $608 million, respectively.
#Fintech#CryptoAssets#Stablecoins#DeFi#DFC
·coindesk.com·
Tether Still Dominates Stablecoins, but USDC and Dai Are Winning DeFi
The Bahamas Launches Its Central Bank Digital Currency
The Bahamas Launches Its Central Bank Digital Currency
The Bahamas Sand Dollar central bank digital currency (CBDC) became available to all residents of The Bahamas on October 20. This makes The Bahamas the first country in the world to officially roll out a CBDC. Residents of The Bahamas can use the blockchain-based digital currency at any merchant with a central bank approved e-Wallet on their mobile device and transaction fees are negligible. The central bank has authorized six financial institutions for the project: Omni Financial, Kanoo, SunCash, Cash N Go, Mobile Assist, and Money Maxx. https://twitter.com/CentralbankBS1/status/1318658064074084352
#Fintech#CryptoAssets#CBDC#DFC
·decrypt.co·
The Bahamas Launches Its Central Bank Digital Currency
What the OCC Interpretive Letter on Stablecoins Means for Banks, Issuers, or Users
What the OCC Interpretive Letter on Stablecoins Means for Banks, Issuers, or Users
The U.S. Office of the Comptroller of the Currency (OCC) stablecoin letter only address the permissibility of managing reserves for hosted wallets, which requires client onboarding and know-your-customer (KYC), and therefore limits its discussion to private stablecoin networks, and argues that this activity “would not contribute to the global and systemic nature noted” by the FSB. In contrast, the OCC may be suggesting that a public stablecoin’s network design, once launched, could not be walked back, and (absent controls) could provide new avenues for illicit activity at a speed and global scale not currently available.
#Fintech#CryptoAssets#Stablecoins#DFC
·promontory.com·
What the OCC Interpretive Letter on Stablecoins Means for Banks, Issuers, or Users
DCEP Adoption: How to use the Digital Yuan
DCEP Adoption: How to use the Digital Yuan
To use the digital yuan for payments, the holder has to scan a merchant’s code using their digital yuan mobile application. The app has an identical user interface as that of Alipay. When scanning, the app supports either a barcode or a QR code. The merchant can scan the code from their customers, or the customers can scan their merchant’s code to activate payment. The app has a feature called "touch" that eliminates the need for a connecting network, provided that the consumer’s and merchant’s mobile devices touch each other when initiating a payment.
#Fintech#CryptoAssets#CBDC#DFC
·asiacryptotoday.com·
DCEP Adoption: How to use the Digital Yuan
China digital currency: Shenzhen consumers spend 8.8 million yuan in largest trial of digital yuan
China digital currency: Shenzhen consumers spend 8.8 million yuan in largest trial of digital yuan
The digital yuan is entering an already very crowded payments market in China, with smartphone apps WeChat Pay and Alipay already dominating the electronic payments sector. Businesses reported minimal differences in processing payments with the e-yuan compared to existing mobile payment products, although they did note that it does not cost them an additional service free unlike both WeChat Pay and Alipay. Also, payments via the digital yuan can be made without connecting to the internet.
#Fintech#CryptoAssets#CBDC#DFC
·scmp.com·
China digital currency: Shenzhen consumers spend 8.8 million yuan in largest trial of digital yuan
Fed's Powell warming to U.S. digital currency
Fed's Powell warming to U.S. digital currency
In the wake of a high-profile public test of China’s digital yuan via public lottery, U.S. Federal Reserve Chairman Jerome Powell spoke about central banks digital currencies and said… go slow. “I actually do think this is one of those issues where it’s more important for the United States to get it right than it is to be first, given the dollar’s important role globally,” Powell said on an International Monetary Fund (IMF) panel on October 19. “Getting it right means that we not only look at the potential benefits of a CBDC, but also the potential risks and also recognize the important trade-offs.”
#Fintech#CryptoAssets#CBDC#DFC
·modernconsensus.com·
Fed's Powell warming to U.S. digital currency
What CBDC Is (Not) About: Part III
What CBDC Is (Not) About: Part III
Absent stricter banking regulation, the central bank is subject to the same competitive forces as everyone else in the market: it needs to compete. Public money on its own is not a sufficient differentiator, particularly in 'normal' times (i.e. no acute financial crisis) where most people wouldn't really know the difference, anyway. Instead, users first and foremost value convenience, speed, and ease of use – features which public sector services are not necessarily most renowned for. In the very competitive payments market, it is thus plausible that CBDC lacks a sufficiently compelling value proposition for warranting users to switch from well-established private solutions. The resulting low-impact scenario will have, as the name suggests, little implications for the structure of our monetary and financial systems.
#Fintech#CryptoAssets#CBDC#DFC
·mrauchs.com·
What CBDC Is (Not) About: Part III
China's $1.5 million digital currency giveaway impressed analysts. Shoppers, not so much
China's $1.5 million digital currency giveaway impressed analysts. Shoppers, not so much
China’s experimental $1.5 million giveaway of digital yuan to Shenzhen citizens ended on Sunday with acclaim from currency analysts. Under the week-long programme, the People’s Bank of China (PBOC) gave 200 yuan to each of 50,000 consumers selected in a lottery in digital “red envelopes". The online wallet was accessible via an app, without need for an existing bank account, with payments accepted via smartphone scans in downtown outlets in China’s fourth-biggest city, from luxury goods retailers to snack stores. However, skeptical reactions among some Shenzhen recipients of the giveaway - long used to scanning phones to pay for goods with other systems - showed the PBOC has work to do in convincing consumers of the benefits of a central bank-backed digital yuan.
#Fintech#CryptoAssets#CBDC#DFC
·uk.reuters.com·
China's $1.5 million digital currency giveaway impressed analysts. Shoppers, not so much
Digital Money Across Borders: Macro-Financial Implications
Digital Money Across Borders: Macro-Financial Implications
A new IMF paper explores the complex interactions between the incentives to adopt and use central bank digital currency (CBDC) and global stablecoins (GSCs) across borders and discusses the potential macro-financial effects. Overall, the paper finds that CBDCs do not qualitatively change the economic forces that lead to the international use of currencies, as they are only digital forms of existing fiat currencies but quantitatively, they could reinforce the incentives behind currency substitution and currency internationalization. A CBDC is not a one-size-fits-all solution for lackluster economies, and it won’t save nations with high inflation or similar domestic issues.
#Fintech#CryptoAssets#CBDC#Stablecoins#GSCs#DFC
·imf.org·
Digital Money Across Borders: Macro-Financial Implications
USDC Continues Move Away From Ethereum, Heads to Stellar
USDC Continues Move Away From Ethereum, Heads to Stellar
US dollar-pegged stablecoin Circle will add USDC support to Stellar’s array of products, among them payments tools, infrastructure APIs and business accounts products, by the first quarter of next year. Circle has long sought to end its dependence on the Ethereum blockchain. In June, it announced support for the Algorand blockchain.
#Fintech#CryptoAssets#Stablecoins#USDC#Algorand#Stellar#DFC
·decrypt.co·
USDC Continues Move Away From Ethereum, Heads to Stellar
Introducing XSGD — the Singapore Dollar-backed and Travel Rule compliant stablecoin
Introducing XSGD — the Singapore Dollar-backed and Travel Rule compliant stablecoin
Xfers launched a Singapore dollar-pegged XSGD stablecoin. Xfers has a Monetary Authority of Singapore (MAS) Major Payment Institution (MPI) e-money issuance license. All XSGD tokens are backed 1:1 with Singapore Dollars held in Xfers’ reserve held in segregated accounts with a fully regulated MAS-approved bank. Xfers claims that XSGD is the world’s first stablecoin to be be compliant with the Financial Action Task Force’s travel rule, so financial institutions can use it for cross-border money transfers as well.
#Fintech#CryptoAssets#Stablecoins#DFC
·medium.com·
Introducing XSGD — the Singapore Dollar-backed and Travel Rule compliant stablecoin
Money and legislation need to be adapted to digitalisation
Money and legislation need to be adapted to digitalisation
Riksbank Governor Stefan Ingves presented his views on what needs to be done to ensure the central bank can continue to carry out its tasks in the future. There shall be enough cash in case the electronic systems break down. There shall be a national, state-issued ID card with e-identification. There shall be digital state money as legal tender, an e-krona, issued by the Riksbank. It shall be possible to make instant payments in Swedish krona, using state money, and between currencies across borders, 24/7.
#Fintech#CryptoAssets#CBDC#DFC
·riksbank.se·
Money and legislation need to be adapted to digitalisation
Spain’s Central Bank Prioritizes Digital Currency Research
Spain’s Central Bank Prioritizes Digital Currency Research
Banco de España, in its strategic plan from 2020 to 2021, is prioritizing research into the implications for the financial system and the economy as a whole of the introduction of a central bank digital currency, considering various design proposals and including aspects relating to digital identification.
#Fintech#CryptoAssets#CBDC#DFC
·bde.es·
Spain’s Central Bank Prioritizes Digital Currency Research
The flipside of China’s central bank digital currency
The flipside of China’s central bank digital currency
This Australian Stretegic Policy Institute policy brief aims improve baseline understanding of the Peoples' Bank of China's e-yuan's structural mechanics and place the project in its political and bureaucratic context. The e-yuan is being developed and implemented domestically first, but could allow China to shape global standards for emerging financial technologies. It also creates opportunities for China to bypass the U.S.-led financial system, which it perceives as a threat to its security interests, potentially disrupting existing systems of global financial governance. Through e-yuan, Beijing could over time move away from the SWIFT system and bypass international sanctions.
#Fintech#CryptoAssets#CBDC#DFC
·aspi.org.au·
The flipside of China’s central bank digital currency
A proposal for an Asian digital common currency
A proposal for an Asian digital common currency
This column advocates the introduction of an Asian digital common currency as a multilateral synthetic currency comparable to the euro. It argues that the benefits it would bring – such as a deepening cooperation within multilateral frameworks and the protection of the rights of small and medium-sized countries – are greater than the disadvantages of inefficiencies in multilateral frameworks.
#Fintech#CryptoAssets#CBDC#DFC
·voxeu.org·
A proposal for an Asian digital common currency
Marshall Islands readies to make waves in digital currency
Marshall Islands readies to make waves in digital currency
The Marshall Islands SOV Foundation is set to start selling SOV subscription rights to international investors by auction over a period of 18 months, to give the government time to judge how the SOV works within the current market and also assess demand for the instrument. It will give the government an indication of how strong is international interest, the liquidity on the exchanges and if the instrument will be volatile. The pilot will allow them time to make up their mind about whether to push forward with a full-scale launch and put in place the relevant institutions and regulations.
#Fintech#CryptoAssets#CBDC#SOV#DFC#Marshall_Islands
·centralbanking.com·
Marshall Islands readies to make waves in digital currency
Covid-19 may survive 28 days on banknotes and payment cards
Covid-19 may survive 28 days on banknotes and payment cards
Researchers at Commonwealth Scientific and Industrial Research Organisation, Australia's national science agency, have found that SARS-CoV-2, the virus responsible for COVID-19, can survive for up to 28 days on common surfaces including banknotes, glass – such as that found on mobile phone screens - and stainless steel. However, the virus tends to survive longer on paper banknotes rather than polymer ones.
#Fintech#CryptoAssets#CBDC#Cash#ContactLessPayment#DFC
·csiro.au·
Covid-19 may survive 28 days on banknotes and payment cards
Retail Central Bank Digital Currency: Design Considerations and Rationales
Retail Central Bank Digital Currency: Design Considerations and Rationales
The Reserve Bank of Australia's view is that the public policy case for issuing a general purpose or retail central bank digital currency (CBDC) in Australia is still to be made. However, consistent with the Bank's mandate to promote competition and efficiency in the payments system and contribute to the stability of the financial system, it will be continuing to consider the case for a CBDC, including how it might be designed, the potential benefits and policy implications, and the conditions in which significant demand for a CBDC might emerge.
#Fintech#CryptoAssets#CBDC#DFC
·rba.gov.au·
Retail Central Bank Digital Currency: Design Considerations and Rationales
MakerDAO’s Embrace of Centralized Stablecoins Offers Risks and Rewards
MakerDAO’s Embrace of Centralized Stablecoins Offers Risks and Rewards
What made the original version of dai so transgressive was its ability to recreate the dollar out of entirely censorship-resistant material. The new version of dai no longer relies solely on censorship-resistant material. But perhaps this new version is even more transgressive. It has secretly docked itself to the Federal Reserve by using USDC stablecoins as a bridging mechanism.
#Fintech#CryptoAssets#MakerDAO#Stablecoins#DFC
·coindesk.com·
MakerDAO’s Embrace of Centralized Stablecoins Offers Risks and Rewards
Regulation, Supervision and Oversight of “Global Stablecoin” Arrangements
Regulation, Supervision and Oversight of “Global Stablecoin” Arrangements
The Financial Stability Board (FSB) published a report that sets out ten high-level recommendations for the regulation, supervision and oversight of “global stablecoin” (GSC) arrangements, both at the domestic and international level, that are proportionate to the risks. They support responsible innovation and provide sufficient flexibility for jurisdictions to implement domestic approaches. GSC arrangements are expected to adhere to all applicable regulatory standards and to address risks to financial stability before commencing operation, and to adapt to new regulatory requirements as necessary.
#Fintech#CryptoAssets#Stablecoins#Regulation#DFC
·fsb.org·
Regulation, Supervision and Oversight of “Global Stablecoin” Arrangements
FSB delivers a roadmap to enhance cross-border payments
FSB delivers a roadmap to enhance cross-border payments
The Financial Stability Board (FSB) published a roadmap to enhance cross-border payments. It addresses the key challenges often faced by cross-border payments and the frictions in existing processes that contribute to these challenges. The roadmap provides a high-level plan, which sets ambitious but achievable goals and milestones, and is designed to allow for flexibility and adaptation in the path to get there as the work progresses, while ensuring that the safeguards in terms of secure processing and legal compliance are observed. It encompasses a variety of approaches and time horizons, in order to achieve practical improvements in the shorter term while acknowledging that other initiatives will need to be implemented over longer time periods.
#Fintech#CryptoAssets#CrossBorder#CBDC#DFC
·fsb.org·
FSB delivers a roadmap to enhance cross-border payments
Digital Dollar Project Pilot Scenarios
Digital Dollar Project Pilot Scenarios
The Digital Dollar Project published initial proposals for nine distinct pilot programs to identify practical opportunities to test and evaluate key features of a U.S. central bank digital currency (CBDC) or “digital dollar.” The pilot programs are designed to explore how a U.S. CBDC could serve important public policy goals while addressing specific challenges faced by different economic stakeholders, including consumers, businesses, financial institutions, and fintechs. Some of the most compelling opportunities available with a U.S. CBDC include development of low-cost digital wallets as on-ramps to bank-lite products for un- and underbanked populations. The Project seeks to solicit feedback, engagement and interest in the pilot proposals. [email protected]
#Fintech#CryptoAssets#CBDC#DFC
·digitaldollarproject.org·
Digital Dollar Project Pilot Scenarios
The international dimension of a central bank digital currency
The international dimension of a central bank digital currency
This column by three ECB economists argues that central bank digital currency (CBDC) would not only have domestic macroeconomic and financial implications for the issuing economy, they would also have implications for the rest of the world. In particular, the unique characteristics of a CBDC, if used internationally, would create a new "super charged" uncovered interest parity condition which would induce stronger international linkages in a quantitatively relevant way.
#Fintech#CryptoAssets#CBDC#DFC
·voxeu.org·
The international dimension of a central bank digital currency
Council of Economic Advisors to Ring in Marshall Islands’ Final Phase of SOV Issuance
Council of Economic Advisors to Ring in Marshall Islands’ Final Phase of SOV Issuance
The SOV Development Foundation, a Marshall Islands foundation overseeing the development, distribution and implementation of the Sovereign (SOV) blockchain, today announced its board of economic and technical advisors as the final phase in preparation for the first public auction of rights to the SOV, a blockchain-based cryptocurrency and the official legal tender of the Marshall Islands.  The Marshall Islands and the SOV Development Foundation are ushering in a groundbreaking development in decentralized finance (DeFi), which is transforming the finance industry and now one of the fastest growing sectors in crypto.
#Fintech#CryptoAssets#CBDC#SOV#DFC#Marshall_Islands
·globenewswire.com·
Council of Economic Advisors to Ring in Marshall Islands’ Final Phase of SOV Issuance