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China’s Digital Currency Will Rise but Not Rule
China’s Digital Currency Will Rise but Not Rule
For all the hype about its central bank digital currency (CBDC), China’s Cross-Border Interbank Payment System (CIPS) is a more important innovation because it makes it easier to use the renminbi for international transactions. Although China's CBDC may eventually be linked up to cross-border payments systems, this by itself will not elevate the renminbi's reserve currency status. However, the CIPS is able to bypass the Western-dominated SWIFT system for international payments and thus circumvent U.S. financial sanctions. Nevertheless, elevating the renminbi's reserve currency status will require more fundamental changes, like the continuation of financial markets reforms and the removal of capital flow restrictions.
#Fintech#CryptoAssets#CBDC#CrossBorder#DFC
·project-syndicate.org·
China’s Digital Currency Will Rise but Not Rule
Major Chinese Bank Launches Central Bank Digital Currency Wallet Briefly
Major Chinese Bank Launches Central Bank Digital Currency Wallet Briefly
State-owned China Construction Bank (CCB) reportedly opened up registration for wallets using the country’s central bank digital currency (CBDC) for a few hours. The wallet's services included payment, redemption, transfer, and credit card recharge, and there were four levels of wallet with varying balance (500,000, 300,000, 50,000 and 10,000 yuan) and payment limits. The bank was issuing each wallet with a unique identification number linked to the customer’s information, including their name, password, mobile phone number, email address, customer number, and bank card number. However, CCB quickly disabled the feature from public users.
#Fintech#CryptoAssets#CBDC#DFC
·news.bitcoin.com·
Major Chinese Bank Launches Central Bank Digital Currency Wallet Briefly
In world first, bank-issued stablecoin used at online retailer
In world first, bank-issued stablecoin used at online retailer
The Sygnum Digital Swiss Franc (DCHF), which is pegged on a 1:1 basis with the fiat currency, was used to complete a payment for an Apple iPad at Digitec Galaxus, Switzerland’s largest online retailer. Coinify, a digital currency platform provider, enabled the sale to take place. Sygnum said its offering stands out against other stablecoin issuers such as Tether because it is a regulated bank—meaning one Swiss franc is verifiably held as collateral for every DCHF that is in circulation.
#Fintech#CryptoAssets#Stablecoins#Payments#DFC
·modernconsensus.com·
In world first, bank-issued stablecoin used at online retailer
'Gasless' Technical Update Brings USDC One Step Closer to Venmo
'Gasless' Technical Update Brings USDC One Step Closer to Venmo
Dubbed USDC 2.0, USD Coin (USDC) has integrated what are called "meta transactions" natively to the dollar stablecoin platform. Now, users do not have to pre-fund their USDC-bearing wallets with ether (ETH) in order to send a transaction. Meta transactions allow USDC wallets and compatible applications to act as virtual "gas stations" by paying the associated mining fee that accompanies every Ethereum blockchain transaction. This [update] enables people to fund their non-custodial wallets with USDC and start using DeFi/dapps without also having to own ETH.
#Fintech#CryptoAssets#Stablecoins#Circle#Ethereum#DFC
·coindesk.com·
'Gasless' Technical Update Brings USDC One Step Closer to Venmo
Coinbase, Circle unveil new upgrades to USDC stablecoin
Coinbase, Circle unveil new upgrades to USDC stablecoin
Circle and Coinbase have announced an upgraded version of the USDC stablecoin — which is managed by the Centre Consortium — including the addition of so-called gasless sends. The "USDC 2.0" update will allow services that offer USDC support to pay transaction fees — known as gas on the Ethereum network — for their users. This allows developers to either provide that service themselves, or allows a third party service to pay the related fees, so developers can either pay the fees on behalf of the customer or present and deduct the fees in USDC. https://medium.com/centre-blog/centre-consortium-announces-release-of-usd-coin-version-2-0-37ee8b27e09b
#Fintech#CryptoAssets#Stablecoins#Circle#DFC
·theblockcrypto.com·
Coinbase, Circle unveil new upgrades to USDC stablecoin
Libra replaces general counsel Robert Werner after 3 months
Libra replaces general counsel Robert Werner after 3 months
Former U.S. Homeland Security Department general counsel, Stevan Bunnel, has been appointed as Libra's general counsel. Since leaving the Homeland Security Department in 2017, Bunnell co-chaired the data privacy-focused legal practice O’Melveny & Myers until joining the Libra Association this month. The association’s former general counsel, Robert Werner is departing from the position after it became clear it meant he would have to relinquish an existing position on the boards of directors for Deutsche Bank Trust Co.
#Fintech#CryptoAssets#Stablecoins#Facebook#Libra#DFC
·cointelegraph.com·
Libra replaces general counsel Robert Werner after 3 months
Tether tops Paypal and Bitcoin for average daily transfer value
Tether tops Paypal and Bitcoin for average daily transfer value
The average daily transfer value for Tether has surpassed that of Bitcoin and PayPal. According to CoinMetrics, Tether’s 7-day average adjusted transfer value reached over $3.55 billion as of August 20. This is around 20% more than that for Bitcoin which was a reported $2.94 billion. According to PayPal’s Q2 report, the daily average transfer value of the online payments giant was also less than Tether’s at $2.94 billion.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·cointelegraph.com·
Tether tops Paypal and Bitcoin for average daily transfer value
Not a strong public-policy case for CBDC issuance in Australia
Not a strong public-policy case for CBDC issuance in Australia
The Reserve Bank of Australia still considers that at present there is not a strong public-policy case for central bank digital currency (CBDC) issuance, given that the electronic payments system in Australia compares very favourably with those in many other countries and access to cash remains good. Nonetheless, they will continue to closely watch the experience of other jurisdictions. They are also continuing to research the technological and policy implications of a wholesale form of CBDC and work to develop a proof-of-concept with external parties to explore aspects of wholesale CBDC, building on research they did in their Innovation Lab last year.
#Fintech#CryptoAssets#CBDC#DFC
·rba.gov.au·
Not a strong public-policy case for CBDC issuance in Australia
Cryptoconvert: Why A 168-Year Old Banknote Printer Will Soon Be Churning Out Digital Drachmas For Central Banks
Cryptoconvert: Why A 168-Year Old Banknote Printer Will Soon Be Churning Out Digital Drachmas For Central Banks
In 2019, German banknote printer Giesecke & Devrient (G&D) unveiled its Filia distributed ledger technology-based central bank digital currency (CBDC) issuance platform. Already six of G&D’s central bank clients are in negotiations about using Filia to issue CBDC. More recently, G&D led a $17 million Series A into Metaco, a Swiss startup providing crypto-asset custody services via its Silo software. Silo, is a user-interface between banks' human operators and the distributed ledgers powering the crypto-assets for which they act as custodians.
#Fintech#CryptoAssets#CBDC#DFC
·forbes.com·
Cryptoconvert: Why A 168-Year Old Banknote Printer Will Soon Be Churning Out Digital Drachmas For Central Banks
Rise of the central bank digital currencies: drivers, approaches and technologies
Rise of the central bank digital currencies: drivers, approaches and technologies
A new BIS paper sets out a database of central bank digital currency (CBDC) technical approaches and policy stances on issuance. Most projects are found in digitised economies with a high capacity for innovation. Work on retail CBDCs is more advanced where the informal economy is larger. More and more central banks are considering retail CBDC architectures in which the CBDC is a direct cash-like claim on the central bank, but where the private sector handles all customer-facing activity. It concludes with an in-depth description of three distinct CBDC approaches by the central banks of China, Sweden and Canada.
#Fintech#CryptoAssets#CBDC#DFC
·bis.org·
Rise of the central bank digital currencies: drivers, approaches and technologies
Crypto Assets of $50 Billion Moved From China in the Past Year
Crypto Assets of $50 Billion Moved From China in the Past Year
About $50 billion in cryptocurrency assets have left China in the past year, a possible indication that investors are dodging rules that limit how much capital they’re allowed to transfer from the nation, according to Chainalysis. Tether accounted for more than $18 billion of the outflows from East Asia in the period. Tether has become a U.S. dollar replacement for many people in China, with lots of Chinese businesses and merchants, especially those working overseas, now accepting Tether. https://blog.chainalysis.com/reports/east-asia-cryptocurrency-market-2020
#Fintech#CryptoAssets#Stablecoins#Tether#CrossBorder#DFC
·bloomberg.com·
Crypto Assets of $50 Billion Moved From China in the Past Year
The Federal Reserve And Central Bank Digital Currencies
The Federal Reserve And Central Bank Digital Currencies
This Davis Polk & Wardwell LLP memo delivers key takeaways on the Federal Reserve’s recent announcement about its research into central bank digital currency, along with some useful resources. It also places the Federal Reserve’s recent announcement, in a speech by Governor Lael Brainard, in the overall international context.
#Fintech#CryptoAssets#CBDC#DFC
·davispolk.com·
The Federal Reserve And Central Bank Digital Currencies
A Global Look at Central Bank Digital Currencies
A Global Look at Central Bank Digital Currencies
The Block Research published a white paper that explores the history, motivations, early technical designs and implementations of the world’s most advanced central bank digital currency (CBDC) proposals. It is based on a review of central bank and international organization literature, plus interviews with various stakeholders, including yours truly (see page 38).
#Fintech#CryptoAssets#CBDC#DFC
·theblockcrypto.com·
A Global Look at Central Bank Digital Currencies
Soramitsu Case Study – Hyperledger
Soramitsu Case Study – Hyperledger
The National Bank of Cambodia (NBC) partnered with Soramitsu to modernize the country’s legacy retail payments using the Hyperledger Iroha blockchain framework. The project, called Bakong, allows users to transfer money and buy from merchants with a simple smartphone app. Merchants gain a fast, cashless, and secure payments system. And banks can do interbank transfers at much lower cost. A pilot project went live in July 2019 and ran successfully with more than 10,000 users. The next step is to let everyone in the country know that the system is available and working, and launch country-wide later in 2020.
#Fintech#PaymentSystems#CBDC#Blockchain#Hyperledger#DFC
·hyperledger.org·
Soramitsu Case Study – Hyperledger
What are stablecoins actually used for?
What are stablecoins actually used for?
Most USDT is used on centralized exchanges for arbitrage - profiting from price differences across exchanges. The way this is done in practice is that arbitrageurs first send USDT to their own wallet before sending to a different exchange. This is done to gain more control over and achieve lower transaction fees on USDT transfers between exchanges. Most of this activity takes place between Huobi, Binance, and Bitfinex. The data also highlights the flow of USDT from issuance to end use. All new USDT is first minted, then sent to Bitfinex, who controls the keys to the printer, before being transferred to other exchanges. In USDT’s entire existence on Ethereum Tether has never burned any supply. According to Flipside Crypto, USDT is by far the most dominant medium of exchange on Ethereum. There’s is over 7 billion USDT on Ethereum, yet only ~2 billion are considered active.
#Fintech#CryptoAssets#Stablecoins#Ethereum#Tether#DFC
·messari.io·
What are stablecoins actually used for?
Money That Rots Like Potatoes, Money That Rusts Like Iron, Hot Money And CBDCs
Money That Rots Like Potatoes, Money That Rusts Like Iron, Hot Money And CBDCs
If CBDCs existed, stimulus payments could have been made with the proviso that they would become worthless within a certain period unless spent on food, rent or other targeted needs. Since CBDCs are programmable, this can be done through a multi-token standard, where the stimulus payments would carry an expiry date and strict control on where the stimulus can be spent. Such forms of money exist today, like food stamps in the US or gift cards that expire. Distributing stimulus to the poor who do not have access to stored cash in a time of unemployment ensures that they spend it.
#Fintech#CryptoAssets#CBDC#Gesell#DFC
·forbes.com·
Money That Rots Like Potatoes, Money That Rusts Like Iron, Hot Money And CBDCs
Central bank digital currencies in the interconnected future
Central bank digital currencies in the interconnected future
With many countries moving towards central bank digital currencies (CBDCs), we can begin to imagine a future where all countries utilise national currency networks, each interconnected to facilitate exchange and trade, as well as many new use cases yet to be developed. While the goals of introducing CBDC networks may vary from country to country, a number of common elements apply, including the synergistic effects of having multiple CBDC networks integrated with one another despite the geopolitical and economic specifics of the countries involved.
#Fintech#CryptoAssets#CBDC#CrossBorder#DFC
·oecdonthelevel.com·
Central bank digital currencies in the interconnected future
Facebook’s libra could disrupt collateral markets – IMF paper
Facebook’s libra could disrupt collateral markets – IMF paper
"In the IMF working paper, called Privacy provision, payment latency and role of collateral, authors Charles Kahn, Caitlin Long and Manmohan Singh argue that digital currencies are analogous to collateral reuse, where securities are exchanged for cash. Looked at this way, central bank digital currencies (CBDCs) and commercial-bank sponsored tokens may be preferable to stablecoins, such as libra, which are issued by private companies without bank charters. "
#Fintech#CryptoAssets#Stablecoins#Facebook#Rehypothecation#Collateral#Libra#DFC
·risk.net·
Facebook’s libra could disrupt collateral markets – IMF paper
Digital Currencies: Public and Private, Present and Future
Digital Currencies: Public and Private, Present and Future
This paper from Singapore's DBS Bank takes stock of the latest developments in the world of digital currencies, public and private. Integral developments in the system of payment and settlements are examined. A list of resources on the latest expert-level thinking is provided at the end of the report. We plan to publish quarterly updates on this game-changing field.
#Fintech#CryptoAssets#CBDC#DFC
·dbs.com·
Digital Currencies: Public and Private, Present and Future
Central banks should not rush into digital currencies
Central banks should not rush into digital currencies
Central bank time and effort would be better spent on upgrading existing payment networks rather than pursuing digital currencies that, for all their innovation, could create more problems than they solve. In some states, however, digital currencies now look unavoidable. With Libra no longer an imminent threat, central banks should not rush them out. With so many challenges to consider, it is vital to get it right.
#Fintech#CryptoAssets#CBDC#DFC
·ft.com·
Central banks should not rush into digital currencies
R3 Webinar Recap: Building CBDC–The Race to Reality
R3 Webinar Recap: Building CBDC–The Race to Reality
Digital currencies issued by central banks (CBDCs) raise a number of questions, ranging from deciding the scenarios in which such changes are desirable, to how they can effectively be implemented. A recent R3 webinar featured 12 leading experts participating in the most advanced CBDC projects in the world, including the IMF's Tobias Adrian and the BIS's Raphael Auer. They provided extensive insights into the future of CBDCs and his post highlights the key takeaways.
#Fintech#CryptoAssets#CBDC#DFC
·r3.com·
R3 Webinar Recap: Building CBDC–The Race to Reality
Unpacking the Avit, Avanti Bank's New Digital Asset Being Built With Blockstream
Unpacking the Avit, Avanti Bank's New Digital Asset Being Built With Blockstream
Avit will be commercial bank money or programmable electronic cash, redeemable at par with a U.S. dollar issued by Avanti Bank. It’s not a security token, or a digital representation of an investment that’s expected to generate returns. Unlike cash, stablecoins are generally issued as intangible assets, which means they aren’t physical or don’t derive their value from contractual claims like stocks and bonds do. Because of this, they have uncertain legal enforceability. Most U.S.-issued stablecoins exist under Article 8 of the Uniform Commercial Code, which requires they have intermediaries.
#Fintech#CryptoAssets#Stablecoins#Blockchain#DFC
·coindesk.com·
Unpacking the Avit, Avanti Bank's New Digital Asset Being Built With Blockstream
Apollo Fintech Announces Completion of the First Blockchain National Currency Platform
Apollo Fintech Announces Completion of the First Blockchain National Currency Platform
Apollo Fintech launched its blockchain-based central bank digital currency (CBDC) National Payment Platform (NPP). It faciliatates the build out of a multi-tier digital currency ecosystem, from commercial banks and other agents, to merchants and users, enabling to peer to peer transactions using its app, SMS, QR codes, cards, offline codes. Authorized banks can onboard users and merchants for mainstream transactions including currency deposits and withdrawals, currency exchange, money transfers and payments for goods and services. https://aplfintech.com/apollo-national-currency-system/
#Fintech#CryptoAssets#CBDC#DFC
·prnewswire.com·
Apollo Fintech Announces Completion of the First Blockchain National Currency Platform
FRB Governor Brainard on on Digital Currencies"
FRB Governor Brainard on on Digital Currencies"
The Federal Reserve is conducting in-house experiments with a hypothetical digital dollar for research purposes, though it hasn’t yet committed to issuance that would require a formal policy process involving the government and other stakeholders. A multidisciplinary team, with application developers from the Federal Reserve Banks of Cleveland, Dallas, and New York, is working with a policy team at the Fed to study the implications of digital currencies on the payments ecosystem, monetary policy, financial stability, banking and finance, and consumer protection.
#Fintech#CryptoAssets#CBDC#DFC
·federalreserve.gov·
FRB Governor Brainard on on Digital Currencies"
Comparing Means of Payment: What Role for a Central Bank Digital Currency?
Comparing Means of Payment: What Role for a Central Bank Digital Currency?
This Federal Reserve Board paper looks at the potential benefit that a central bank digital currency (CBDC) could provide in the context of existing payment mechanisms. A comparison of a general-purpose CBDC with existing means of payments across seven categories reveals how an appropriately designed CBDC could provide value in certain areas. These technological benefits could include a digital form of a bearer instrument, more cost-effective payment services, greater anonymity than current digital transactions, and a catalyst for greater innovation through programmable money.
#Fintech#CryptoAssets#CBDC#DFC
·federalreserve.gov·
Comparing Means of Payment: What Role for a Central Bank Digital Currency?
The Boston Fed announces collaboration with MIT to research digital currency
The Boston Fed announces collaboration with MIT to research digital currency
The Federal Reserve Bank of Boston announced a multiyear collaboration with the Digital Currency Initiative at the Massachusetts Institute of Technology to perform technical research related to a central bank digital currency. The research project will explore the use of existing and new technologies to build and test a hypothetical digital currency platform. The first phase will involve jointly building and testing a hypothetical central bank digital currency for wide-scale, general purpose use. The objective in this phase will be to determine how to architect a scalable, accessible cryptographic platform to meet the needs of a theoretical U.S. dollar CBDC, including stringent design requirements for speed, security, privacy and resiliency.
#Fintech#CryptoAssets#CBDC#DFC
·bostonfed.org·
The Boston Fed announces collaboration with MIT to research digital currency
Chinese state-run banks start testing PBoC’s ‘e-wallet’
Chinese state-run banks start testing PBoC’s ‘e-wallet’
China’s largest state-owned banks have reportedly started testing the “electronic wallet” component of the People’s Bank of China’s (PBOC's) “digital yuan” project. The tests are being conducted in cities including Shenzhen, which borders Hong Kong. The municipal government of Shenzhen said it would cooperate in efforts to test the system for different applications. Banks are testing the e-wallet application to transfer money and make payments using the PBoC’s digital yuan. The e-wallet, which can be downloaded as a mobile application, will be linked to a user’s national ID number or telephone number to enable fund transfers.
#Fintech#CryptoAssets#CBDC#DFC
·centralbanking.com·
Chinese state-run banks start testing PBoC’s ‘e-wallet’