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Banque De France selects 8 potential partners for CBDC experiment
Banque De France selects 8 potential partners for CBDC experiment
The Banque De France has selected eight potential partners, including HSBC, Accenture, and Seba Bank, in its hunt to modernize interbank settlement via a central bank digital currency (CBDC). The Banque De France also laid out the specific criteria for the CBDC proposals, noting that they aim to “explore new methods of exchanging financial instruments,” but specifically excluding crypto-assets such as Bitcoin. The experiments will also test CBDC regulations to improve the execution of cross-border payments, and revisit methods of making central bank money available. https://www.banque-france.fr/communique-de-presse/liste-des-candidatures-retenues-pour-les-experimentations-de-monnaie-digitale-de-banque-centrale
#CBDC#CryptoAssets#Fintech#wCBDC#Eurozone#France#DFC
·decrypt.co·
Banque De France selects 8 potential partners for CBDC experiment
Japanese Financial Giant MUFG to Launch Digital Currency in 2020 - CoinDesk
Japanese Financial Giant MUFG to Launch Digital Currency in 2020 - CoinDesk
Mitsubishi UFJ Financial Group (MUFG), is set to issue a digital currency in the second half of this year. The cryptocurrency will be issued in collaboration with Recruit Group, a major Japanese holding firm that operates restaurant-finding service Hot Pepper Gourmet and many more. The digital currency will be initially utilized in a smartphone payment app for member companies. Recruit has around 1 million member stores.
#CryptoAssets#Stablecoins#Fintech#Payments#DFC
·coindesk.com·
Japanese Financial Giant MUFG to Launch Digital Currency in 2020 - CoinDesk
BOJ creates new team to look into central bank digital currencies
BOJ creates new team to look into central bank digital currencies
The Bank of Japan (BoJ) reportedly is creating a new team in its Payment and Settlement Systems Department to look more closely into central bank digital currencies. The team will follow up on the BOJ’s efforts so far on central bank digital currencies (CBDCs), including joint research it has been conducting with other major central banks since January.
#Fintech#CryptoAssets#CBDC#DFC
·uk.reuters.com·
BOJ creates new team to look into central bank digital currencies
Digital Yuan CBDC Momentum Grows as More Chinese Firms Get to Testing
Digital Yuan CBDC Momentum Grows as More Chinese Firms Get to Testing
Meituan Dianping, the China’s largest wholesale and delivery platform, is the latest firm to to join the People's Bank of China's central bank digital currency (CBDC) pilot that launched in April. They join DiDi Chuxing, China's Uber counterpart, and streaming platform Bilibili. The total number of customers of the three services combined is over 1 billion people within China. The CBDCpilot is reportedly being conducted in four cities: Shenzhen, Suzhou, Chengdu and Xiong’an. Other pilot participants include four state-owned banks, including the Agricultural Bank of China, and a number of large companies, including Huawei, China Telecom, China Mobile and China Unicom.
#Fintech#CryptoAssets#CBDC#sCBDC#DFC
·cointelegraph.com·
Digital Yuan CBDC Momentum Grows as More Chinese Firms Get to Testing
The Bank of Jamaica Opens Door to Central Bank Digital Currency
The Bank of Jamaica Opens Door to Central Bank Digital Currency
The Bank of Jamaica is inviting interested central bank digital currency (CBDC) providers to develop and test potential CBDC solutions in its recently established Fintech Regulatory Sandbox. Households and businesses would be able to use the proposed CBDC to make payments and store value, as they do now with cash. However the Bank is assuring the public that it will continue to issue bank notes and coins. The CBDC would be issued to licensed deposit taking institutions on a wholesale basis just as now being done with physical currency, which makes it sound like possibly a synthetic CBDC.
#Fintech#CryptoAssets#CBDC#sCBDC#DFC
·boj.org.jm·
The Bank of Jamaica Opens Door to Central Bank Digital Currency
Japan puts central bank digital currencies on policy roadmap
Japan puts central bank digital currencies on policy roadmap
Japan will look closer into whether to issue central bank digital currency (CBDC), the government reportedly said in its annual policy roadmap. In its first-ever reference to digital currency in the annual plan, the government urged the Bank of Japan (BOJ) to liaise with other countries to jointly examine its feasibility. "The BOJ will coordinate with other countries to consider CBDCs by examining and verifying technological tests," according to the document, which serves as guidance for the government's long-term economic and fiscal policies. The BOJ has said it has no immediate plans to issue a digital currency, it is conducting research with other central banks on the issue.
#Fintech#CryptoAssets#CBDC#DFC
·uk.reuters.com·
Japan puts central bank digital currencies on policy roadmap
Bank of Thailand CBDC rolled out for businesses before public debut
Bank of Thailand CBDC rolled out for businesses before public debut
The Bank of Thailand (BOT) has started using its central bank digital currency (CBDC) for financial transactions with some big businesses. The BOT is also thinking about expanding its use to the general public, but it will conduct a comprehensive study must be completed before taking such action. It mentioned that CBDC may have negative impacts on commercial banks by removing the need for a middleman in financial transactions, although, on the positive side, it would reduce the cost of financial transactions. In June the BOT had announced that it will develop a prototype of a CBDC-based payment system for businesses that will integrate CBDC with the procurement and financial management systems of the Siam Cement Public Company and its suppliers. https://www.bot.or.th/Thai/AboutBOT/Activities/Documents/MediaBriefing2020/MediaBriefSummary_Statement.pdf
#Fintech#CryptoAssets#CBDC#DFC
·nationthailand.com·
Bank of Thailand CBDC rolled out for businesses before public debut
The comfort of cash in a time of coronavirus
The comfort of cash in a time of coronavirus
Americans are using less cash but they are holding more, which presents a challenge for the Federal Reserve and other central banks around the world. They have to maintain a vast network of secure printers and depots to deliver cash to where it is needed. As people use less cash, each piece of this infrastructure becomes more expensive to operate. But central banks will not be able to wind it down completely, for two reasons. First, the poor are more likely to still use cash, exacerbating the “digital divide”. And second, in a crisis, everyone wants a fistful of dollars.
#Fintech#CryptoAssets#CBDC#Cash#MobileMoney#ContactLessPayment#Pandemic#DFC
·ft.com·
The comfort of cash in a time of coronavirus
Retail Central Bank Digital Currencies: means of payment vs store of value
Retail Central Bank Digital Currencies: means of payment vs store of value
This paper discusses how different CBDC attributes (anonymity, remuneration, value-added services or caps on the holdings) can limit the substitutability between bank deposits and CBDCs in different situations. CBDC holding caps seem the most obvious solution but this may face practical difficulties such as how to impose the limits when an individual holds CBDCs in wallets offered by different providers or what to do with payments to accounts that exceed the caps. Another possibility is to set different tiers of CBDCs holdings, with a penalizing interest rate above a certain threshold. This may function in normal times, but would probably require extremely penalizing (negative) rates in a crisis or a bank run, which may create problems from the point of view of the central bank objective of preserving the value of money. Even if the CBDC is non-interest bearing, the substitutability between deposits and CBDCs will still depend on the extent to which regulation and competition dynamics allow banks and other financial intermediaries to compete with CBDCs, and in a crisis situation their value-added services may become irrelevant as compared to the safety of central bank money.
#Fintech#CryptoAssets#CBDC#DFC
·suerf.org·
Retail Central Bank Digital Currencies: means of payment vs store of value
COVID-19, central bank digital currencies, and other payments instruments
COVID-19, central bank digital currencies, and other payments instruments
Through CBDC, governments could send direct payments much more rapidly than through checks or tax refunds and could provide geographically and temporally targeted relief. The CBDC supporting infrastructure would also enable fund receivers to make payments and transfers seamlessly to other CBDC holders and/or non-CBDC holders, anywhere and anytime across the economy. CBDC could reinforce the resilience of a country’s retail payment services, especially in those cases where private sector infrastructures are disrupted, due to technical problems, personnel unavailability, or inability of service providers to operate. The ‘programmability’ of CBDC could be used to monitor and control how, when, and where recipients utilise the funds. Finally, CBDC could enable people to substitute for cash and in-person payment methods when social distancing is required, or if the use of cash plummets as people worry about germs. Still, CBDC projects will take time to materialise, and meanwhile existing infrastructures could be improved to facilitate transfers and payments.
#Fintech#CryptoAssets#CBDC#FastPayments#Pandemic#DFC
·voxeu.org·
COVID-19, central bank digital currencies, and other payments instruments
Hong Kong Citizens Turn to Stablecoins to Resist National Security Law
Hong Kong Citizens Turn to Stablecoins to Resist National Security Law
Trading volume between Hong Kong dollars and the U.S.-dollar pegged stablecoin USDT saw a surge in early June on the fiat-crypto trading platform TideBit. The surge followed the decision to strengthen Hong Kong’s national security law, which was unveiled by Chinese legislators during the Two Sessions, the largest annual political gathering in mainland China. The second trading surge on the exchange followed the enactment of the new law on June 30.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·coindesk.com·
Hong Kong Citizens Turn to Stablecoins to Resist National Security Law
The evolving role of central bank money in payments
The evolving role of central bank money in payments
Changes in technology and user preferences during the last 20 years have led to fewer ‘areas of exclusivity’ and more ‘areas of overlap’ between central and commercial bank money settlement as well as with new entrants. However, the ‘multiple-issuer-/one-currency’ paradigm underpinning the current monetary system should, and will, remain. The reluctance of central banks to compete with commercial banks makes it likely that new forms of co-operation will emerge. Much has been written on potential substitution effects in the event of a CBDC being offered and ways to contain them. But there has not been enough on possible co-operation models to offer CBDC or on how central banks will preserve the value of payment data privacy in the 21st century.
#Fintech#CryptoAssets#CBDC#DFC
·centralbanking.com·
The evolving role of central bank money in payments
Central Bank of the Bahamas Lessons from Hurricane Dorian
Central Bank of the Bahamas Lessons from Hurricane Dorian
In the Hurricane Dorian aftermath, the Central Bank of the Bahamas Project Sand Dollar demonstrated one major benefit: rapid payments system restoration after a disaster. On Abaco and to a lesser extent Grand Bahama, local banking services closed as the branches and ATMs were destroyed or rendered nonfunctional. Restoring these physical assets required weeks to months, and in some cases are not yet in place. Mobile phone coverage, by contrast, was generally restored with a few days after Dorian. Sand Dollar’s mobile phone functionality will mean that the financial recovery aspects of a hurricane can progress more quickly and more safely than would otherwise be the case.
#Fintech#CryptoAssets#CBDC#Climate#DFC
·centralbankbahamas.com·
Central Bank of the Bahamas Lessons from Hurricane Dorian
CoinMetrics Reports on the Rise of Stablecoins
CoinMetrics Reports on the Rise of Stablecoins
CoinMetrics has produced an in-depth research report on the rise of stablecoins following the March 2020 crypto crash. Stablecoin supply has exploded in 2020 but it’s unclear exactly why. After it took 5 years for stablecoin supply to reach 6 billion, it only took another 4 months for it to grow from 6 billion to 12 billion following the March 12th crypto crash.
#Fintech#CryptoAssets#Stablecoins#DFC
·coinmetrics.substack.com·
CoinMetrics Reports on the Rise of Stablecoins
The Road to Digital Money - Twenty Two Suggestions for Leveling the Roadbed Before We Pave It
The Road to Digital Money - Twenty Two Suggestions for Leveling the Roadbed Before We Pave It
This David Siegel essay argues that, soon enough, we will start to talk about the real-world realization of the dream of a digitally native dollar. It then goes on to recommend that the US government create a task force whose goal is to overhaul the financial system we have today to better serve the 9–10 billion people who are coming this century. It starts with an overview, then presents 22 goals for the task force to achieve before we begin coding up a digital dollar infrastructure.
#Fintech#CryptoAssets#CBDC#DigitalID#FinancialIntegrity#AMLCFT#DFC
·medium.com·
The Road to Digital Money - Twenty Two Suggestions for Leveling the Roadbed Before We Pave It
Bitfinex Must Face N.Y. Suit Over $800 Million in Lost Funds
Bitfinex Must Face N.Y. Suit Over $800 Million in Lost Funds
A New York state appeals court ruled that Bitfinex must face claims by New York state that it hid the loss of commingled client and corporate funds. Companies connected to Bitfinex are accused by the New York Attorney General of hiding the loss of more than $800 million in client and corporate funds. Companies tied to Bitfinex also operate the stablecoin Tether, which serves as a conduit for trading in much of cryptocurrency market globally. The appeals court rejected the argument that Tether, with a market capitalization of more than $9 billion, is not a security or commodity, and said the court has jurisdiction over its issuer.
#Fintech#CryptoAssets#Stablecoins#Tether#Bitfinex#DFC
·bloomberg.com·
Bitfinex Must Face N.Y. Suit Over $800 Million in Lost Funds
China’s CBDC Project to Collaborate With More Domestic Enterprises
China’s CBDC Project to Collaborate With More Domestic Enterprises
Meituan and Bilibilibili have apparently both begun to cooperate with a number of banks involved in the digital Yuan project. Meituan is a major service platform with over 240 million consumers and five million local merchants, and Bilibilibili is known as China’s largest video sharing website.
#CryptoAssets#Fintech#CBDC#DFC
·finance.caixin.com·
China’s CBDC Project to Collaborate With More Domestic Enterprises
Ride-Hailing Giant DiDi to Trial China's Central Bank Digital Currency
Ride-Hailing Giant DiDi to Trial China's Central Bank Digital Currency
Chinese ride-hailing mobile service DiDi has reportedly entered into a strategic partnership with the Digital Currency Research Institute of the People’s Bank of China (PBoC) in an effort to accelerate the application of its Digital Currency Electronic Payment (DCEP). DiDi is the dominant ride-hailing mobile service in China.
#Fintech#CryptoAssets#CBDC#DFC
·coindesk.com·
Ride-Hailing Giant DiDi to Trial China's Central Bank Digital Currency
FATF Report to the G20 Finance Ministers and Central Bank Governors on So-called Stablecoins
FATF Report to the G20 Finance Ministers and Central Bank Governors on So-called Stablecoins
In a report to the G20 finance ministers and central bank governors, the Financial Action Task Force (FATF) said regulators need to cooperate to make measures such as the "travel rule" more effective. The organization will work to develop an international framework for authorities to coordinate and share information about virtual asset service providers (VASPs). The FATF also said it will be providing specific guidance on stablecoins for regulators at some future point.
#Fintech#CryptoAssets#Stablecoins#FinancialIntegrity#FATF#DFC
·fatf-gafi.org·
FATF Report to the G20 Finance Ministers and Central Bank Governors on So-called Stablecoins
Central Bank to take ‘Sand Dollar’ nationwide by Q3
Central Bank to take ‘Sand Dollar’ nationwide by Q3
The Central Bank of the Bahamas is preparing to make the Sand Dollar available nation wide by the end of the third quarter of this year, according to Deputy Prime Minister and Minister of Finance K Peter Turnquest. Turnquest was addressing Parliament on the proposed legislative reforms to Central Bank Governance, Financial Sector Crisis Management and Modernization of the Domestic Payments System.
#Fintech#CryptoAssets#CBDC#DFC
·ewnews.com·
Central Bank to take ‘Sand Dollar’ nationwide by Q3
The early history of “Central Bank Digital Currency”
The early history of “Central Bank Digital Currency”
Central banks had talked about the idea of CBDCs for years — but with the Libra announcement, the economic astronauts went “this is our moment!” and dusted off their suddenly-popular old musings. But where did the idea of central bank digital currencies come from?
#Fintech#CryptoAssets#CBDC#DFC
·davidgerard.co.uk·
The early history of “Central Bank Digital Currency”
Unleashing the euro’s untapped potential at global level
Unleashing the euro’s untapped potential at global level
According to Fabio Panetta, Member of the Executive Board of the ECB, if a euro CBDC is allowed to be used outside the euro area, the euro’s international role could be strengthened if the CBDC represented an attractive payment vehicle or store of value for non-euro area residents. It could have implications for capital flows and the exchange rate of the euro, with potential knock-on effects on euro area and global economic developments. It could amplify the real and financial cross-border spillovers of domestic monetary policy shocks by creating a new channel for their propagation. The magnitude of such effects would depend on the design of the CBDC.
#Fintech#CryptoAssets#CBDC#DFC
·ecb.europa.eu·
Unleashing the euro’s untapped potential at global level
The potential effect of a central bank digital currency on deposit funding in Canada
The potential effect of a central bank digital currency on deposit funding in Canada
This Bank of Canada paper looks at how deposit competition from a cash-like central bank digital currency would impact the income and liquidity of the six largest Canadian banks. In plausible scenarios, it finds that the banks could absorb the potential shock to net income and liquidity but experience temporary declines in profitability.
#Fintech#CryptoAssets#CBDC#DFC
·bankofcanada.ca·
The potential effect of a central bank digital currency on deposit funding in Canada
SocGen’s digitised bond passes settlement test
SocGen’s digitised bond passes settlement test
Societe Generale quietly achieved a first: the settlement of a securities trade using a wholesale central bank digital currency (CBDC). The French bank issued a covered bond in the form of a securitised token on a public blockchain. It then bought back the debt using digital euros issued by the Banque de France. The deal was not large – at €40 million it could be described as a token gesture – but it’s a significant step in the creation of smart contracts that enable instant trade settlement. CBDC could slash the time and cost of settlement, unlocking trapped capital that could be used for other activity and so boosting intraday liquidity.
#Fintech#Plumbing#CryptoAssets#Blockchain#Settlement#CBDC#DFC
·risk.net·
SocGen’s digitised bond passes settlement test
What's Next for CBDCs?
What's Next for CBDCs?
Fed Chair Jerome Powell recently dismissed the idea of private sector involvement in the development of a CBDC, but other current and former senior officials, such as Brian Brooks (Acting Comptroller of the Currency) and Christopher Giancarlo (former CFTC Chairman) disagree. Will we see the Federal Reserve launch a CBDC wholly on its own? Or will we see a few different Fed-endorsed “digital dollars” piloted simultaneously, perhaps some issued by the Fed and others by private companies or banks? It may be worth exploring a hybrid licensing framework whereby the federal government sets out technical, regulatory, and oversight requirements for the private sector to issue competing “digital dollars,” while still preserving the benefits of a Fed-run “public option.”
#Fintech#CryptoAssets#CBDC#sCBDC#DFC
·schnappercasteras.com·
What's Next for CBDCs?
Motives Matter: Examining Potential Tension in Central Bank Digital Currency Designs
Motives Matter: Examining Potential Tension in Central Bank Digital Currency Designs
This Kansas City Fed note discusses the challenges of designing CBDC to achieve financial inclusion in the United States. For example, CBDC that requires a smartphone or internet connection may only reach about half of the unbanked U.S. population. Also, the tension over technology choices could lead to neither financial inclusion nor cross-border usage being fulfilled by a CBDC. Finally, CBDC has been discussed as a possible mechanism for setting negative policy rates, but that would require abolishing cash, anathema to CBDC designed for financial inclusion.
#Fintech#CryptoAssets#CBDC#FinancialInclusion#DFC
·kansascityfed.org·
Motives Matter: Examining Potential Tension in Central Bank Digital Currency Designs
Technical hurdles for a Japanese CBDC
Technical hurdles for a Japanese CBDC
The Bank of Japan (BoJ) will commence a digital yen proof of concept. It anticipates two major technical challenges; ensuring universal access (with only 65% of Japan's population having access to smartphones in 2018) and finding the right balance between resilience (which favors a distributed ledger platform) and capacity/speed (which favors a centralized ledger). It is leaning towards a centralized ledger. Some degree of offline functionality was also deemed important.
#Fintech#CryptoAssets#CBDC#DFC
·boj.or.jp·
Technical hurdles for a Japanese CBDC
Circle, Coinbase say USD Coin passes $1B
Circle, Coinbase say USD Coin passes $1B
USD Coin (USDC) has broken the $1 billion market capitalization barrier. Multiple factors are driving recent growth, including COVID19-related currency volatility across many developing economies, the addition of support for blockchains other than Ethereum (with Algorand being the first to join) and the adoption of USDC by Compound (a decentralized finance (DeFi) lending crypto-asset lending platform. https://compound.finance/
#Fintech#CryptoAssets#Stablecoins#USDC#DeFi#Compound#DFC
·modernconsensus.com·
Circle, Coinbase say USD Coin passes $1B
Lithuania to Launch CBDC This Month — Intended for Collection Purposes, Not Trade
Lithuania to Launch CBDC This Month — Intended for Collection Purposes, Not Trade
The Bank of Lithuania (BOL) will launch a pre-sale of its LBCOIN CBDC on July 9. The coin will be issued and sold on July 23. While LBCOIN is technically a CBDC based on the NEM blockchain and issued by the BOL, the BOL prefers to call it “the world’s first blockchain-based digital collector coin.”
#Fintech#CryptoAssets#CBDC#DFC
·cointelegraph.com·
Lithuania to Launch CBDC This Month — Intended for Collection Purposes, Not Trade