DFC

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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
celo.works – Bringing non-custodial wallets to feature phones
celo.works – Bringing non-custodial wallets to feature phones
Celo.Works is a non-custodial mobile wallet, enabling feature phone users to send and receive remittances at a fraction of the cost compared to traditional methods. Celo.Works is built on the Celo blockchain. Celo.Works is accessible, enabling users to send/receive cUSD on feature phones that cost as little as $15.
#Fintech#CryptoAssets#Stablecoins#Celo#DFC
·celo.works·
celo.works – Bringing non-custodial wallets to feature phones
The ECB's digital euro: anonymous or not?
The ECB's digital euro: anonymous or not?
According to Aleksi Grym, a digital euro might not fall under e-money laws - could also fall under bank deposits, or it might require an entirely new legal category. Also, 5AMLD is just one directive, but payments are regulated by many directives, regulations, and national legislation, different in each country. Legislation is not uniform across the EU. Also. a key point is that even if something (anonymity in this case) would be really beneficial to have, it doesn't necessarily mean it should be the central bank who provides it.
#Fintech#CryptoAssets#CBDC#AMLCFT#FinancialIntegrity#Privacy#DFC
·twitter.com·
The ECB's digital euro: anonymous or not?
Central banks are not constrained by AML regulations in designing CBDCs
Central banks are not constrained by AML regulations in designing CBDCs
Central banks and related authorities are increasingly publishing papers explaining what the design of a central bank digital currency (CBDC) might look like. In itemizing the various design choices available, they explain that any design will be constrained by the necessity to "comply with AML law." However, no such constraint exists in reality and the various central bank papers that bring this up do no cite any specific law or regulation. It seems to be a tic on the part of the paper authors who seem to be assuming there must be such a law and are thus artificially limiting their design choices.
#Fintech#CryptoAssets#CBDC#AMLCFT#FinancialIntegrity#Privacy#DFC
·moneyandpower.org·
Central banks are not constrained by AML regulations in designing CBDCs
Stablecoins and Fair Value Measurement Feature in Updated Guidance from AICPA Digital Assets Working Group
Stablecoins and Fair Value Measurement Feature in Updated Guidance from AICPA Digital Assets Working Group
The Association of International Certified Professional Accountants (AICPA) Digital Assets Working Group added 13 questions and answers to its Accounting for and Auditing of Digital Assets Practice Aid. The Aid includes vital information for professionals on how to account for and audit digital assets. It is intended for those with a fundamental knowledge of blockchain technology, is based on existing professional literature and the experience of members of the Digital Assets Working Group and is specific to U.S. GAAP (for non-governmental entities) and GAAS.
#Fintech#CryptoAssets#Accounting#Auditing#Stablecoins#DFC
·aicpa.org·
Stablecoins and Fair Value Measurement Feature in Updated Guidance from AICPA Digital Assets Working Group
The Bank of Japan's Approach to Central Bank Digital Currency
The Bank of Japan's Approach to Central Bank Digital Currency
The Bank of Japan (BoJ) published its approach to retail central bank digital currency (CBDC). Although it currently has no plans to issue CBDC, from the viewpoint of ensuring the stability and efficiency of the overall payment and settlement systems, the Bank considers it important to prepare thoroughly to respond to changes in circumstances in an appropriate manner. It has plans for PoC trials in 2021.
#Fintech#CryptoAssets#CBDC#DFC
·boj.or.jp·
The Bank of Japan's Approach to Central Bank Digital Currency
Central banks and BIS publish first central bank digital currency (CBDC) report laying out key requirements
Central banks and BIS publish first central bank digital currency (CBDC) report laying out key requirements
The Bank of Canada, European Central Bank, Bank of Japan, Sveriges Riksbank, Swiss National Bank, Bank of England, Board of Governors of the Federal Reserve and Bank for International Settlements have collaborated on a report setting out common foundational principles and core features of a central bank digital currency (CBDC). These principles emphasise that, in order for any jurisdiction to consider proceeding with a CBDC, certain criteria would have to be satisfied. Specifically, authorities would first need to be confident that issuance would not compromise monetary or financial stability and that a CBDC could coexist with and complement existing forms of money, promoting innovation and efficiency.
#Fintech#CryptoAssets#CBDC#DFC
·bis.org·
Central banks and BIS publish first central bank digital currency (CBDC) report laying out key requirements
Shenzhen to give out 10 million yuan 'gift money' in digital RMB
Shenzhen to give out 10 million yuan 'gift money' in digital RMB
The People’s Bank of China and are reportedly going to hand out 10 million digital yuan as “red envelope” gifts to citizens. Red envelopes are a traditional way of gifting cash in China on holidays or for special occasions such as weddings. The money will be distributed equally to 50,000 recipients through lottery. Residents can use the money at 3,389 designated merchants, including restaurants, supermarkets, gas stations, metro stations, department stores, and other businesses in Luohu District within next week.
#Fintech#CryptoAssets#CBDC#DFC
·news.cgtn.com·
Shenzhen to give out 10 million yuan 'gift money' in digital RMB
BOK to virtually test distribution of digital currency next year
BOK to virtually test distribution of digital currency next year
The Bank of Korea is reportedly planning to start testing the distribution of blockchain-based central bank digital currency (CBDC) next year. It announced in April that it had launched a 22-month pilot program that would run through December 2021. The distribution and circulation test is the final part of the three-step pilot program. Phase 2, which focuses on analyzing related processes and seeking outside consulting, started recently. Phase 1, designing and checking the technology, ended in July. Blockchain technology will be used to keep track of digital currency transactions.
#Fintech#CryptoAssets#CBDC#DFC
·koreaherald.com·
BOK to virtually test distribution of digital currency next year
Sibos 2020: What percentage of cross-border payments could be made in CBDCs?
Sibos 2020: What percentage of cross-border payments could be made in CBDCs?
43% of delegates at SWIFT's Sibos 2020 conference think that central bank digital currency (CBDC) will see widespread adoption in the next five years. Another 43% said they would take off within ten years and 14% said they would do so within the next year. However, only 5% thought that cross-border payments would be conducted using CBDCs in five years' time, the vast majority citing limitations of FX and non-harmonised financial integrity regulations, which would remain even when using CBDCs. (Sibos was previously known as SWIFT International Banking Operations Seminar and is organized by the Society for Worldwide Interbank Financial Telecommunication (SWIFT)).
#Fintech#CryptoAssets#CBDC#DFC
·finextra.com·
Sibos 2020: What percentage of cross-border payments could be made in CBDCs?
CBDC, KSICash and our Partnership with the Estonian Central Bank
CBDC, KSICash and our Partnership with the Estonian Central Bank
Digital Currencies have always been on Guardtime’s agenda. Indeed, our first conversations about building a digital cash system with Central Banks started in the early 2000s. Although there was no clear market opportunity then, we continued to do fundamental research. Over the last 5 years our research efforts intensified, leading to the invention of KSICash, a full stack infrastructure for CBDC built on KSI Blockchain. Over the weeks and months ahead we will have a lot to say about KSICash, its properties and why we think it can be a strong candidate for a CBDC, meeting the scalability, performance, security and resilience requirements that central banks will demand.
#Fintech#CryptoAssets#CBDC#Blockchain#DFC
·guardtime.com·
CBDC, KSICash and our Partnership with the Estonian Central Bank
Inside the Marshall Islands’ New Cryptocurrency: The SOV
Inside the Marshall Islands’ New Cryptocurrency: The SOV
If the Republic of the Marshall Islands’ state-sponsored SOV cryptocurrency takes off SFB Technologies, the software company building the coin, would become incredibly wealthy. SFB Technologies would receive 7.5% of the coin’s supply, which it could use after five years of its launch—which could be at any point after the 18-month-long presale begins, if the government implements the idea. The SOV Foundation, the non-profit overseeing the development of the project, will hold its presale for SOV in the next couple of months, just in case the Marshall Islands’ government, which is still deliberating whether to issue the coin, goes ahead with the project. The SOV will be built on the Algorand blockchain.
#Fintech#CryptoAssets#Sovereign#CBDC#SOV#DFC#Marshall_Islands
·decrypt.co·
Inside the Marshall Islands’ New Cryptocurrency: The SOV
Bank of Canada calls central bank digital currencies risky, especially storage
Bank of Canada calls central bank digital currencies risky, especially storage
"An anonymous token-based central bank digital currency (CBDC) would pose particular security risks," the Bank of Canada wrote in its Oct. 5 report. "These risks arise from how balances are aggregated and stored, how CBDC is used for transactions, and how various solutions such as e-wallets, crypto exchanges and banks compete to attract users."
#Fintech#CryptoAssets#CBDC#Canada#DFC
·cointelegraph.com·
Bank of Canada calls central bank digital currencies risky, especially storage
What CBDC Is (Not) About – Part I
What CBDC Is (Not) About – Part I
There is no reason at all why distributed ledger technology (DLT) should be any more suited than other technologies. In fact, there's is little reason why a CBDC should run on DLT at all, as shown in early implementations which took place long before the blockchain hype, like the Bank of Finland's Avanti smart card payment system in the 1990s). Irrespective of the exact design and implementation details, CBDC is about a power shift from the private sector (financial institutions) to the public sector (central banks). If implemented, it has the potential to fundamentally reshape our current monetary and financial systems, with implications not yet fully understood.
#Fintech#CryptoAssets#CBDC#DFC
·mrauchs.com·
What CBDC Is (Not) About – Part I
PBOC’s digital currency already used for pilot transactions worth 1.1 billion yuan
PBOC’s digital currency already used for pilot transactions worth 1.1 billion yuan
China's Digital Currency Electronic Payment (DC/EP) central bank digital currency (CBDC) has been used for more than 1.1 billion yuan worth of transactions as part a series of ongoing pilot programs, according to People‘s Bank of China Deputy Governor Fan Yifei. 3.13 million transactions were processed using the currency, which has been undergoing tests for much of the past year in major cities, such as Shenzhen and Xiongan. Pilots also will be conducted at the coming Winter Olympics in 2022. The pilot programs made “positive progress”, with more than 6,700 use cases implemented as of late August for transactions ranging from bill payments and transport to government services, Fan said.
#Fintech#CryptoAssets#CBDC#DFC
·scmp.com·
PBOC’s digital currency already used for pilot transactions worth 1.1 billion yuan
Security and convenience of a central bank digital currency
Security and convenience of a central bank digital currency
This Bank of Canada paper discusses how an anonymous central bank digital currency (CBDC) would pose certain security risks to users. These risks arise from how balances are aggregated, from their transactional use and from the competition between suppliers of aggregation solutions. The central bank could mitigate these risks in the design of the CBDC by limiting balances or transfers, modifying liability rules or imposing security protocols on storage providers.
#Fintech#CryptoAssets#CBDC#DFC
·bankofcanada.ca·
Security and convenience of a central bank digital currency
Eggs in One Basket: Security and Convenience of Digital Currencies
Eggs in One Basket: Security and Convenience of Digital Currencies
Digital currencies store balances in anonymous electronic addresses. We analyze the trade-offs between safety and convenience of aggregating balances in addresses, electronic wallets and banks. In our model agents balance the risk of theft of a large account with the cost to safeguarding a large number of passwords of many small accounts. Account custodians (banks, wallets and other payment service providers) have different objectives and tradeoffs on these dimensions; we analyze the welfare effects of differing industry structures and interdependencies, and in particular the consequences of "password aggregation" programs which in effect consolidate risks across accounts.
#Fintech#CryptoAssets#CBDC#DFC
·research.stlouisfed.org·
Eggs in One Basket: Security and Convenience of Digital Currencies
CBDC remuneration in a world with low or negative nominal interest rates
CBDC remuneration in a world with low or negative nominal interest rates
The prospect of central bank digital currency (CBDC) has raised concerns over its potential to cause structural (i.e. permanent) or cyclical (i.e. crisis-related, temporary) bank disintermediation. Moreover, negative interest rate policy is incompatible with the unconstrained supply of zero-remunerated CBDC. This column argues that a two-tier remuneration system for CBDC would be an efficient solution to these issues. It would allow households to access the CBDC as a means of payment with non-negative remuneration and would also make it possible to overcome the perceived dichotomy between retail and wholesale CBDC.
#Fintech#CryptoAssets#CBDC#DFC
·voxeu.org·
CBDC remuneration in a world with low or negative nominal interest rates
The ECB's digital euro: anonymous or not?
The ECB's digital euro: anonymous or not?
The European Central Bank's recent report exploring the idea of issuing a retail central bank digital currency (CBDC) claims that "regulations do not allow anonymity in electronic payments and the digital euro must in principle comply with such regulations". In fact, the Fifth EU Anti-Money Laundering Directive (AML5) exempts issuers of e-money/prepaid cards from collecting customer information if user holdings do not exceed EUR50 (EUR150 for non-rechargeable stored value cards). Why did the EU build an anonymity exemption into payments law but now chooses to avoid exploiting it in potential CBDC designs?
#Fintech#CryptoAssets#CBDC#FinancialIntegrity#AMLCFT#Privacy#DFC
·jpkoning.blogspot.com·
The ECB's digital euro: anonymous or not?
ECB Digital Euro Hub
ECB Digital Euro Hub
"Digitalisation has spread to every corner of our lives and transformed how we pay. In this new era, a digital euro would guarantee that citizens in the euro area can maintain free access to a simple, universally accepted, safe and trusted means of payment. A digital euro is not meant to replace cash, but rather to complement it. Together, they give people more choices about how to pay, and make it easier for them to do so, increasing financial inclusion."
#Fintech#CryptoAssets#CBDC#DFC
·ecb.europa.eu·
ECB Digital Euro Hub
Eesti Pank is launching a research project into central bank digital currency
Eesti Pank is launching a research project into central bank digital currency
Estonia's central bank, Eesti Pank, has launched a multi-year project with Guardtime and The SW7 Group to research how technologically suitable the Estonian e-government core technology is for operating a central bank digital currency (CBDC). The aim of the two-year multi-phase project is to investigate how suitable a solution based on the KSI Blockchain, a core technology of e-government in Estonia, could be for operating central bank digital money infrastructure. It will also examine new payment solutions that could be made possible by using electronic identity and other Estonian e-government solutions.
#Fintech#CryptoAssets#CBDC#DFC
·eestipank.ee·
Eesti Pank is launching a research project into central bank digital currency
ECB intensifies its work on a digital euro
ECB intensifies its work on a digital euro
The European Central Bank (ECB) published a report on the possible issuance of a digital euro, prepared by the Eurosystem High-Level Task Force on central bank digital currency (CBDC) and approved by the Governing Council. A public consultation will be launched on 12 October to assess the needs of all stakeholders, as well as the benefits and challenges they expect from the issuance of a digital euro, in detail. Experimentation will start in parallel, without prejudice to the final decision. Fabio Panetta, member of the ECB’s Executive Board and Chair of the task force said “a digital euro would support Europe’s drive towards continued innovation, contribute to its financial sovereignty and strengthen the international role of the euro.”
#Fintech#CryptoAssets#CBDC#DFC
·ecb.europa.eu·
ECB intensifies its work on a digital euro
ECB Applies for ‘Digital Euro’ Trademark Amid Feasibility Study
ECB Applies for ‘Digital Euro’ Trademark Amid Feasibility Study
The European Central Bank (ECB) has applied to trademark the term “digital euro” as officials prepare to release an assessment of the benefits and drawbacks of creating a digital version of the currency. The application was filed on September 22 by the ECB’s legal representatives Bock Legal, according to the website of the European Union Intellectual Property Office. An ECB spokesman confirmed the filing. https://euipo.europa.eu/eSearch/#details/trademarks/018311625
#Fintech#CryptoAssets#CBDC#DFC
·bloomberg.com·
ECB Applies for ‘Digital Euro’ Trademark Amid Feasibility Study
Kenya’s golf stablecoin highlights need for Africa-wide regulations
Kenya’s golf stablecoin highlights need for Africa-wide regulations
YENTS, a stablecoin developed by the Kenya’s Young Entrepreneurs Network (YEN), has entered into testing under the local regulatory sandbox. YEN, which organizes golfing tournaments to facilitate networking opportunities for Kenyan entrepreneurs, plans on initially using the stablecoin as a means of payment for sporting events and training programs. YEN intends to launch the token in November, and hopes to use it to accept investments into a planned golf course.
#Fintech#CryptoAssets#Stablecoins#DFC
·cointelegraph.com·
Kenya’s golf stablecoin highlights need for Africa-wide regulations
Bitfinex Launches Tether-Settled Perpetual Contracts Based on European Equities
Bitfinex Launches Tether-Settled Perpetual Contracts Based on European Equities
Crypto-asset exchange Bitfinex has launched tether (USDT)-settled perpetual contracts that track two European equity market indices (STOXX Europe 50 and Germany 30). Each contract offers up to 100x leverage and will be settled in stablecoin tether (USDT). A perpetual contract is similar to a traditional futures contract, but has no expiry and mimics a margin-based spot market. The perpetual contracts will be open for trading 24/7, unlike equity exchanges which are open for business for a limited number of hours, five days a week.
#Fintech#CryptoAssets#Derivatives#Futures#Stablecoins#Tether#DFC
·coindesk.com·
Bitfinex Launches Tether-Settled Perpetual Contracts Based on European Equities
The Bahamas Reveal Details, October Date of Landmark Central Bank Digital Currency Debut
The Bahamas Reveal Details, October Date of Landmark Central Bank Digital Currency Debut
The "gradual national release of Central Bank of the Bahamas (CBOB) Sand Dollar central bank digital currency (CBDC) will begin on October 20, 2020. In the first phase, authorised financial institutions (AFIs) will ready their systems with know-your-customer (KYC) and other compliance checks across low-value, personal and enterprise wallets. The CBOB said it has subjected the Sand Dollar to a "rigorous cybersecurity assessment" to overcome public fears of paying with a digital currency. Regulations surrounding the Sand Dollar will be "crystalized" in the public space over the month of October. Sand Dollar's second phase, slated for early- through mid-2021, will focus on preparing essential infrastructure services in the government and private sectors, such as utility companies, for the CBDC. https://www.centralbankbahamas.com/news/public-notices/the-sand-dollar-is-on-schedule-for-gradual-national-release-to-the-bahamas-in-mid-october-2020
#Fintech#CryptoAssets#CBDC#DFC
·coindesk.com·
The Bahamas Reveal Details, October Date of Landmark Central Bank Digital Currency Debut
ConsenSys Selected by Hong Kong Monetary Authority to Lead Phase Two of Project Inthanon-LionRock | ConsenSys
ConsenSys Selected by Hong Kong Monetary Authority to Lead Phase Two of Project Inthanon-LionRock | ConsenSys
ConsenSys has been awarded a cross-border payment network study project by the Hong Kong Monetary Authority (HKMA). The HKMA and the Bank of Thailand (BOT) signed a Memorandum of Understanding in May 2019, initiating Project Inthanon-LionRock to study the application of a wholesale central bank digital currency (CBDC) for cross-border payments. ConsenSys will work on the second implementation phase of the project, that is aimed at circumventing the correspondent banking network, allowing direct payments between banks.
#Fintech#Blockchain#CBDC#CrossBorder#ConsenSys#DFC
·consensys.net·
ConsenSys Selected by Hong Kong Monetary Authority to Lead Phase Two of Project Inthanon-LionRock | ConsenSys
OCC's First Issued Guidance for Stablecoins Brings More Questions
OCC's First Issued Guidance for Stablecoins Brings More Questions
In the guidance, the OCC writes that it is allowing banks to manage funds kept in a “hosted” wallet, an address that would essentially represent the relevant stablecoin’s reserves. The watchdog adds, “We are not presently addressing the authority to support stablecoin transactions involving un-hosted wallets.” “Un-hosted wallets” seem to refer to addresses individuals or businesses would control. This distinction has caused some confusion, with Coin Center’s Jerry Brito raising the question whether this points to a possible prohibition on banking firms that support un-hosted wallets.
#Fintech#CryptoAssets#Stablecoins#Regulation#DFC
·coindesk.com·
OCC's First Issued Guidance for Stablecoins Brings More Questions