DFC

5259 bookmarks
Newest
Platform Money
Platform Money
The CEPR published a paper that explores how digital platforms can gain a strategic edge over traditional markets by issuing their own private digital money (such as platform tokens), enabling them to set their own rates of inflation and extract revenue via seignorage in addition to user fees. The authors use a two-sided market model to show that platform-controlled money, coupled with superior matching technology, allows platforms to attract more buyers and sellers, optimize market interactions, and potentially increase social welfare—although this depends on consumer sensitivity to inflation and technological advantages. Ultimately, the study suggests that platform money alters market competition, with platforms potentially yielding efficiency improvements but also introducing costs that require thoughtful regulation. [Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5221959
#Fintech#Platforms#Money#Stablecoins#eMoney#DFC
·cepr.org·
Platform Money
The GENIUS Act is Now Law. What’s Missing? (MIT DCI)
The GENIUS Act is Now Law. What’s Missing? (MIT DCI)

The MIT Digital Currency Initiative (DCI) published a critique of the recently passed GENIUS Act, the first U.S. federal law regulating payment stablecoins. While the Act establishes redemption requirements and sets a framework for compliance, it leaves unresolved issues around maintaining stablecoin value in secondary markets, technical interoperability, and regulatory standards for security and smart contracts. The law prohibits issuers from paying interest and introduces ambiguities in its scope—especially regarding new stablecoin models and decentralized systems. Ultimately, although the GENIUS Act represents a major policy advance, unresolved policy, technical, and regulatory questions may impact both users and the future growth of stablecoins in the U.S. [Source: MIT DCI]

#CryptoAssets#Fintech#Regulation#Stablecoins#UnitedStates#DFC
·dci.mit.edu·
The GENIUS Act is Now Law. What’s Missing? (MIT DCI)
Strategic Digitization in Currency and Payment Competition (JFE)
Strategic Digitization in Currency and Payment Competition (JFE)
The Journal of Financial Economics (JFE) published an article that analyzes how competition from private digital money (like cryptocurrencies and stablecoins) and foreign currencies is driving national governments to digitize their own currencies and modernize payment systems. The authors find that less-dominant currencies tend to digitize faster to gain a competitive edge, while dominant ones like the U.S. dollar delay action until truly threatened. If governments hesitate too long, private digital money can take over, reducing the role of traditional fiat currencies in global payments. The study highlights that regulation, public–private partnerships, and strategic timing all impact this competition, and achieving efficient outcomes will require cross-border cooperation. Ultimately, the enduring significance of fiat currencies in digital payments depends on strategic, timely, and coordinated digitization by governments.
#CBDC#CryptoAssets#Fintech#Stablecoins#Money#DFC
·sciencedirect.com·
Strategic Digitization in Currency and Payment Competition (JFE)
Stablecoins are Mainstream (David G.W. Birch)
Stablecoins are Mainstream (David G.W. Birch)
David G.W. Birch argues that stablecoins, especially dollar-backed tokens like USDT and USDC, have transitioned from a crypto niche to a mainstream financial tool used for global commerce, payroll, and remittances. Birch notes that stablecoins' growing role in cross-border payments and their increasing adoption by businesses have significant implications for both the private sector and public policy, especially as regulators and central banks grapple with the challenges of monetary sovereignty and the rise of public digital currencies. He advocates for nuanced regulation and recognizing stablecoins' transformative potential in the global financial system. [Source: David G.W. Birch]
#Stablecoins#Fintech#CryptoAssets#Regulation#DFC
·dgwbirch.substack.com·
Stablecoins are Mainstream (David G.W. Birch)
Retail CBDCs In Practice: The Experience of the Sanddollar, E-CNY and JAM-DEX (SSRN)
Retail CBDCs In Practice: The Experience of the Sanddollar, E-CNY and JAM-DEX (SSRN)
A team of central bankers posted a paper on SSRN that reviews reviews the practical rollout and early experiences of retail CBDCs in The Bahamas (SandDollar), China (e‑CNY), and Jamaica (JAM‑DEX®) as of August 2025, noting that early public uptake was modest but that more recent data point to a gradual increase in use. It finds no evidence of significant movement of bank deposits into these CBDCs, in part because they are used primarily as payment instruments rather than savings vehicles, and most transactions incur no fees for consumers or merchants, implying potential cost savings versus traditional alternatives. Each jurisdiction’s design reflects distinct policy goals—such as financial inclusion and payments modernization—implemented via two‑tier, account‑based structures with streamlined onboarding for the unbanked and a range of incentives to spur user and merchant adoption. The study underscores that clear public communication, market‑based incentives to secure private sector participation, and international peer learning are critical for success, and that while CBDCs still represent only a small share of total payments, they fill specific gaps and offer useful lessons for global policymakers. [Source: SSRN]
#CBDC#China#Bahamas#Jamaica#Fintech#DFC
·papers.ssrn.com·
Retail CBDCs In Practice: The Experience of the Sanddollar, E-CNY and JAM-DEX (SSRN)
Stablecoins Could Increase Treasury Demand, but Only by Reducing Demand for Other Assets (Kansas City Fed)
Stablecoins Could Increase Treasury Demand, but Only by Reducing Demand for Other Assets (Kansas City Fed)
The U.S. Kansas City Fed published an article that explains that stablecoin issuers may become significant buyers of U.S. Treasury securities, but the funds used to buy stablecoins would largely come from existing sources like bank deposits. This shift could reduce banks’ capacity to lend, since stablecoin issuers do not extend traditional loans, and the increase in Treasury demand would largely offset a decrease in other asset demand, such as loans. Ultimately, the overall effect on Treasury demand will depend on what existing assets people liquidate to buy stablecoins, and while Treasury demand may rise, it will likely be at the expense of other financial assets. [Source: Kansas City Fed]
#Stablecoins#UnitedStates#Regulation#CryptoAssets#Fintech#DFC#FinancialStability
·kansascityfed.org·
Stablecoins Could Increase Treasury Demand, but Only by Reducing Demand for Other Assets (Kansas City Fed)
Crypto, Tokenisation, and the Future of Payments
Crypto, Tokenisation, and the Future of Payments
The Centre for Economic Policy Research (CEPR) published a policy paper by Stephen Cecchetti and Kermit Schoenholtz that explains how recent US government efforts aim to establish the US as a global leader in crypto and digital payments. The paper analyzes the three core digital technologies transforming finance: blockchain, distributed ledgers, and particularly tokenisation (the creation of unique, programmable digital assets). It argues that while crypto, especially stablecoins, is gaining policy support, its practical use as a payment vehicle outside of crypto niches remains limited by costs, volatility, and regulatory gaps. Tokenised deposits and money market funds from well-regulated institutions offer stronger protections, interest, and global integration, making them likely to dominate the future of digital payments. The paper warns that growing links between crypto and traditional finance could create new systemic risks and regulatory challenges, and ultimately, broad-based adoption of tokenised assets—not stablecoins—is likely to drive the next payments revolution. [Read more at the CEPR]
#Fintech#Regulation#Tokenization#Blockchain#CryptoAssets#Stablecoins#UnitedStates#DFC
·cepr.org·
Crypto, Tokenisation, and the Future of Payments
Point-of-Sale Integration: The Hidden Catalyst to CBDC Adoption
Point-of-Sale Integration: The Hidden Catalyst to CBDC Adoption
OMFIF interviewed G+D's Lars Hupel, who emphasizes that for central bank digital currencies (CBDCs) to be widely adopted, seamless point-of-sale (POS) integration is essential. Rather than building new hardware, he suggests leveraging current POS devices and card payment infrastructures, updating them with software for CBDC compatibility. A key to merchant acceptance is providing commercial incentives like lower transaction or scheme fees, rather than relying on regulations such as mandatory acceptance. For users, CBDC payments should be as intuitive as current digital payments, prioritizing convenience and instant, possibly offline, settlement. Ultimately, Dr. Hupel argues that easy technical and commercial integration at POS is the hidden, but critical, catalyst for CBDC adoption, promising greater resilience and efficiency in retail payments.
#CBDC#Fintech#Payments#DFC
·linkedin.com·
Point-of-Sale Integration: The Hidden Catalyst to CBDC Adoption
Results of the 2024 BIS survey on central bank digital currencies
Results of the 2024 BIS survey on central bank digital currencies
The Bank for International Settlements (BIS) published its annual central bank digital currency (CBDC) survey. It found that 91% of the 93 central banks surveyed were actively exploring CBDCs in 2024, with wholesale CBDC development generally more advanced than retail versions. The primary motivation remains preserving the role of central bank money amid declining cash usage and rising asset tokenization, with over one-third of central banks accelerating their CBDC work in response to stablecoin developments. Significant differences exist between advanced economies and emerging market economies in terms of legal frameworks, design features, and use cases—with emerging economies more likely to have clear legal authority and consider features like distributed ledger technology. Simultaneously, 67% of jurisdictions now have enacted or are developing regulations for stablecoins and cryptoassets, while asset tokenization has gained traction in most advanced economies and one-third of emerging markets, particularly in bond markets, suggesting a coordinated evolution of both public and private digital money initiatives.​​​​​​​​​​​​​​​​ [Read more at the BIS]
#BIS#CBDC#CryptoAssets#Stablecoins#wCBDC#rCBDC#Fintech#DFC
·bis.org·
Results of the 2024 BIS survey on central bank digital currencies
Circle Gateway: Redefining crosschain UX with a unified USDC balance (Circle)
Circle Gateway: Redefining crosschain UX with a unified USDC balance (Circle)
Circle has launched a unified cross-chain infrastructure that enables businesses to access USDC balances across multiple blockchains, without the need to pre-position funds on each chain. By combining smart contracts and an offchain attestation service, Gateway allows users to move USDC across supported chains (such as Ethereum, Arbitrum, and Base) in under 500 milliseconds, simplifying liquidity management, reducing costs, and eliminating slow multi-chain settlements. This solution is designed to streamline both user and business experience by offering chain-agnostic USDC balances, faster payments, and easier integration for wallets, custodians, payment providers, and exchanges. Read more at: https://www.circle.com/pt-br/blog/circle-gateway-redefining-crosschain-ux
#Circle#Stablecoins#CryptoAssets#Fintech#USDC#DFC
·circle.com·
Circle Gateway: Redefining crosschain UX with a unified USDC balance (Circle)
Wyoming State Launches Frontier Stable Token (FRNT)
Wyoming State Launches Frontier Stable Token (FRNT)
The Wyoming Stable Token Commission has launched the first fully-reserved, U.S. state-backed stablecoin, with reserves held in U.S. dollars and Treasuries. The Frontier Stable Token's (FRNT's) stability is fortified with a legislatively-mandated remit to achieve 2% over-collateralization. It is initially available on seven blockchains, including Ethereum, Solana, and Polygon, and will soon be accessible on major platforms such as Kraken and Rain. The Commission has partnered with LayerZero for token issuance, Fireblocks for blockchain infrastructure, Franklin Advisers for reserves management, Inca Digital for open-source intelligence and The Network Firm for audits and monthly attestations. FRNT will be made available for purchase on the Solana blockchain through Wyoming-domiciled digital asset exchange Kraken, as well as Rain’s Visa-integrated card platform on the Avalanche blockchain. https://content.govdelivery.com/accounts/WYGOV/bulletins/3ee734a
#CryptoAssets#Stablecoins#UnitedStates#Wyoming#Fintech#DFC
·coindesk.com·
Wyoming State Launches Frontier Stable Token (FRNT)
Digital Tenge Implementation in Public Spending
Digital Tenge Implementation in Public Spending

[July 10, 2025] National Bank of Kazakhstan (NBK) Chief Digital Officer Binur Zhalenov posted an update on progress of the digital tenge implementation for public finance purposes. More than ten public spending use cases already tested — including Digital VAT refunds, targeted funding for road repairs, National Fund-financed projects, and cross-border payment scenarios. Integration models with government information systems are being developed — paving the way for full-scale operations by the end of 2025. New pilots include the “Safe Deal” for real estate and vehicles, voucher scheme for state support measures, lending to the agro-industrial complex, construction projects, and procurement of high-value goods (medical and IT equipment).

#CBDC#Kazakhstan#Fintech#DFC
·linkedin.com·
Digital Tenge Implementation in Public Spending
Innovative Methods To Detect Illicit Activity Involving Digital Assets
Innovative Methods To Detect Illicit Activity Involving Digital Assets
The U.S. Department of the Treasury is inviting the public to provide input on the use of innovative or novel methods, techniques, or strategies to detect and mitigate illicit finance risks involving digital assets. This notice fulfills a requirement of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which lists four specific technologies on which Treasury should seek comment (application program interfaces (APIs), artificial intelligence (AI), digital identity verification, and use of blockchain technology and monitoring). Consistent with the Act, the Treasury is directed evaluate and consider these tools’ effectiveness, costs, privacy implications, and implementation challenges.
#Fintech#CryptoAssets#Stablecoins#Regulation#UnitedStates#DFC
·federalregister.gov·
Innovative Methods To Detect Illicit Activity Involving Digital Assets
Circle Launching Arc Open Layer-1 Blockchain
Circle Launching Arc Open Layer-1 Blockchain
Circle announced plans to launch a new stablecoin-focused, Ethereum Virtual Machine (EVM) compatible Layer 1 blockchain called Arc, which will use USDC as its native gas token. Aimed at supporting enterprise-grade stablecoin payments, FX, and capital markets, Arc promises features like a stablecoin FX engine, rapid sub-second settlement, opt-in privacy, seamless integration with Circle’s platform, and interoperability across other partner blockchains. The public testnet for Arc is expected to go live in the fall of 2025 and a mainnet beta in 2026.
#Blockchain#Stablecoins#Fintech#Circle#DFC#USDC
·circle.com·
Circle Launching Arc Open Layer-1 Blockchain
Personal financial planning and the propensity of CBDC adoption
Personal financial planning and the propensity of CBDC adoption
A paper published in the International Journal of Bank Marketing explores how personal financial planning impacts individuals’ willingness to adopt central bank digital currencies (CBDCs), using survey data from Sweden and the UK. The research finds that individuals who engage in activities such as budgeting, tracking expenses or setting long-term goals are more likely to express interest in CBDC adoption. These behaviors, reflecting financial literacy and forward-looking decision-making, align with openness to innovative financial technologies, were strengthened by perceptions of security, safety, and trust in the new technology. Individuals who believe that CBDCs are secure and that their personal data will be protected are significantly more likely to adopt the technology. Socioeconomic factors like education and age, as well as personal attitudes toward technology and risk, also influence adoption.
#CBDC#Fintech#Sweden#UnitedKingdom#DFC
·emerald.com·
Personal financial planning and the propensity of CBDC adoption
Public Attitudes Towards CBDC and the Role of Trust in the Central Bank
Public Attitudes Towards CBDC and the Role of Trust in the Central Bank
A forthcoming Bar Ilan University Faculty of Law Research Paper reports on the results of a multi-stage nationally-representatvie survey conducted in collaboration with the Bank of Israel on Israeli attitudes towards a possible digital shekel. The survey revealed that willingness to adopt was strongly correlated with trust in the central bank; respondents who expressed higher trust in the Bank of Israel were much more likely to intend to use the digital shekel. Interestingly, concerns about privacy were lower among Israelis compared to similar surveys in other countries, which may explain their relatively high acceptance. When asked about the most important features, respondents prioritized ease of use across payment scenarios, fraud protection, the ability to use the currency offline, absence of hidden fees, the option to earn interest, and above all, assurance that the central bank would not have access to personal transaction data. Overall, the survey highlights that while technical features matter, trust in the central bank is the most decisive factor influencing public willingness to adopt CBDC in Israel.
#CBDC#Israel#Fintech#DFC#Privacy
·papers.ssrn.com·
Public Attitudes Towards CBDC and the Role of Trust in the Central Bank
Digital Dollar: Privacy and Transparency Dilemma
Digital Dollar: Privacy and Transparency Dilemma
The University of California (UC) Law Journal published a paper by Jiaying Jiang that explores the debate around implementing central bank digital currency (CBDC), focusing on the tension between privacy and regulatory demands. The author argues that the prevailing fear of government surveillance is not a technical inevitability but a result of outdated anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations. To address this, the paper proposes concrete solutions: modernizing AML/CFT rules to allow for limited, threshold-based anonymity in everyday CBDC transactions; updating institutional record-keeping and reporting so small or low-risk transfers can occur privately; adopting privacy-preserving technologies like token-based payment options and encryption; and introducing clear legal carve-outs that permit financial institutions to implement privacy-by-design features without breaching regulatory obligations. These reforms, the author contends, would enable a digital dollar that protects user privacy while still equipping authorities with the tools necessary for oversight and crime prevention—demonstrating that privacy and compliance can be achieved together through thoughtful legal and technical innovation.
#CBDC#Privacy#UnitedStates#Fintech#DFC
·hastingslawjournal.org·
Digital Dollar: Privacy and Transparency Dilemma
2024 Bank of Canada Methods-of-Payment Survey Report
2024 Bank of Canada Methods-of-Payment Survey Report
According to the Bank of Canada, in 2024, Canadians’ cash use remained stable at roughly one-fifth of transaction volume and about one-tenth of value, holding its place behind credit and debit at the point of sale; meanwhile, nominal cash holdings ticked up (with more $50/$100 notes on hand), and withdrawals rose across ABMs, branches, and cashback though still below pre‑2017 levels. Most people report good access to cash (ABMs and branches), strong note quality perceptions, and limited appetite to go fully cashless—nearly four in five have no plans to abandon cash, and even many “cashless” consumers still keep some on hand. Cash transactions skew toward lower‑value purchases (average around the mid‑$20s over the diary window), while contactless cards and rising mobile payments continue to capture higher shares of in‑person spending; merchant acceptance of cash remains high, and the overall post‑pandemic leveling suggests cash persists as a meaningful, resilient payment option despite ongoing growth in digital alternatives.
#Cash#Payments#Canada#Fintech#DFC
·bankofcanada.ca·
2024 Bank of Canada Methods-of-Payment Survey Report
Closing the Payment of Interest Loophole for Stablecoins
Closing the Payment of Interest Loophole for Stablecoins
The U.S. Bank Policy Institute (BPI), backed by several U.S. banking groups, implored Congress to close a loophole that could allow stablecoin holders to receive interest indirectly through affiliated exchanges, thereby evading the GENIUS Act’s ban on interest and yield. Because payment stablecoins neither fund loans like bank deposits nor operate as securities like money market funds, the BPI says they should not pay interest. They cite a Treasury estimate that up to $6.6 trillion of deposits could flow out of banks if stablecoins can offer yield, warning that such shifts would raise borrowing costs and reduce credit availability, especially during stress, unless the prohibition is extended to affiliates and distribution channels.
#Stablecoins#Regulation#UnitedStates#Fintech
·bpi.com·
Closing the Payment of Interest Loophole for Stablecoins
Reserve Bank of Zimbabwe conducts CBDC survey
Reserve Bank of Zimbabwe conducts CBDC survey
The Reserve Bank of Zimbabwe (RBZ) is reportedly again exploring the possibility of introducing a central bank digital currency (CBDC). The central bank is starting by conducting a CBDC consumer survey to solicit opinions on the design and nature of the CBDC and its overall acceptance by the public. In November 2021, the Cabinet mandated the RBZ to explore the feasibility of a CBDC. Since then, the RBZ has undertaken study tours to countries in the advanced stages of CBDC development, and has drawn up a roadmap for potential CBDC adoption in Zimbabwe.
#CBDC#Fintech#Zimbabwe#DFC
·bulawayo24.com·
Reserve Bank of Zimbabwe conducts CBDC survey
Pakistan's digital currency effort gets support from Japan
Pakistan's digital currency effort gets support from Japan
The State Bank of Pakistan (SBP) is reportedly partnering with Japan’s blockchain firm Soramitsu to pilot a central bank digital currency (CBDC) this year, with funding from Japan’s Ministry of Economy, Trade and Industry (METI) Global South program. Soramitsu, the developer of Cambodia’s Bakong central bank-backed interbank payment system, is also developing offline CBDC capabilities to enable smartphone transactions without internet access. Last month, SBP Governor Jameel Ahmad ihmad said Pakistan was “building up our capacity on the SBP digital currency” and hoped to roll out a pilot soon". https://www.ledgerinsights.com/pakistan-planning-cbdc-pilot/
#Fintech#CBDC#Pakistan#Soramitsu#DFC
·asia.nikkei.com·
Pakistan's digital currency effort gets support from Japan
Threshold Signatures for Central Bank Digital Currencies
Threshold Signatures for Central Bank Digital Currencies
Several G+D researchers published an evaluation of the use of threshold elliptic curve digital signature algorithm (ECDSA) signatures to harden key management in central bank digital currency (CBDC) systems, using G+D’s Filia as a case study. It motivates TSS to eliminate single points of failure in custodial wallets run by financial service providers (FSPs), and compares two integration options, selecting a separate key management network (KMN) that holds key shares and serves signing to Payment Processors for modularity and security. After defining CBDC-driven requirements (transparent coexistence with standard wallets, efficient DKG, high signing throughput, secure key export/import and key updates, compatibility with P-256 ECDSA, and strong composable security), the authors choose the CGGMP21 protocol (via the dfns Rust library) for its UC security, P-256 support, pre-signing, and one-round online signing. Benchmarks show DKG, pre-signing, and signing costs grow with threshold size; end-to-end tests integrating KMN into Filia reveal roughly an order-of-magnitude throughput drop versus non-threshold setups, especially for cross-FSP transfers, though performance is acceptable for smaller n and t. Identified bottlenecks include interactive signing when pre-signatures are unavailable after key updates; proposed mitigations include background pre-signing and persistent channels. The conclusion is that TSS meaningfully strengthens CBDC security and is feasible for real deployments with careful engineering and parameter choices.
#CBDC#CyberSecurity#Cryptography#Fintech#G+D
·arxiv.org·
Threshold Signatures for Central Bank Digital Currencies
CBDCs: A solution in search of a problem
CBDCs: A solution in search of a problem
In two articles in The Conservative Woman, Kevin Dowd presented a systematic critique of CBDCs, arguing that they constitute solutions seeking problems rather than addressing genuine market needs. Dowd contends that purported benefits of CBDCs—including enhanced payment efficiency, financial inclusion, and monetary safety are illusory since existing mechanisms such as deposit insurance, competitive banking reforms, and private digital currencies already address these concerns more effectively. The articles identify multiple structural disadvantages: CBDCs would likely disintermediate traditional banking by drawing deposits away from commercial banks, create operational inefficiencies through central bank monopolization of retail payment services, generate conflicts of interest between regulatory and operational functions, and require ongoing public subsidies to remain viable. Both pieces emphasize the privacy and civil liberties implications, suggesting CBDCs would enable unprecedented surveillance capabilities that could be weaponized against dissenting populations, while noting consistent public opposition evidenced by low adoption rates in pilot programs across multiple countries and significant resistance during public consultations. The empirical record shows CBDCs have been abandoned in Finland and Ecuador, while current implementations in countries like the Bahamas, China, and Nigeria demonstrate negligible per capita holdings and poor public acceptance, leading Dowd to conclude that CBDCs offer no demonstrable benefits while imposing substantial risks to financial stability, economic efficiency, and individual autonomy. https://www.conservativewoman.co.uk/central-bank-digital-currencies-all-downside-no-upside/
#CBDC#Fintech#DFC
·conservativewoman.co.uk·
CBDCs: A solution in search of a problem
Brazilian Drex CBDC Drops Blockchain to Launch Next Year
Brazilian Drex CBDC Drops Blockchain to Launch Next Year
Banco Central do Brasil (BCB) will reportedly launch its Drex central bank digital currency (CBDC) in 2026. Project lead Fabio Araujo said the rollout will come in two phases, with the initial phase dropping tokenization and the decentralized blockchain-based design it had piloted due to immature privacy solutions that failed to meet bank-grade confidentiality and verifiability standards. This shift means several programmable use cases tested in pilots won’t be available at launch, and there’s no guarantee Drex will continue using Hyperledger Besu, the Ethereum-compatible platform previously chosen. The first release will focus on a lien reconciliation solution to enable credit operations with various types of collateral, with details on supporting tools yet to be announced. Drex has been through several iterations, the first focusing on retail CBDC, the second on wholesale CBDC-backed tokenized deposits, and then this third iteration, which could be either retail or wholesale CBDC.
#Brazil#CBDC#Fintech#DFC
·news.bitcoin.com·
Brazilian Drex CBDC Drops Blockchain to Launch Next Year
Paxos to Pursue National Trust Charter with the OCC
Paxos to Pursue National Trust Charter with the OCC
Paxos has filed an application to convert its New York Department of Financial Services (NYDFS) trust charter into a national trust charter under the supervision of the Office of the Comptroller of the Currency (OCC). Since 2015, the company has operated under oversight from the NYDFS when it became the first blockchain and tokenization company to be granted a limited purpose trust charter and issued the first regulated stablecoin in 2018. All Paxos-issued assets will remain fully backed by bankruptcy-remote reserves held in U.S. dollars, U.S. Treasuries, and cash equivalents, ensuring guaranteed 1:1 redemption.
All Paxos-issued assets will remain fully backed by bankruptcy-remote reserves held in U.S. dollars, U.S. Treasuries, and cash equivalents, ensuring guaranteed 1:1 redemption.
#Regulation#Stablecoins#UnitedStates#Paxos#USDP#Fintech#DFC
·paxos.com·
Paxos to Pursue National Trust Charter with the OCC
Ethena USDe Jumps to 3rd in Stablecoin Market Cap Rankings
Ethena USDe Jumps to 3rd in Stablecoin Market Cap Rankings
Ethena's USDe stablecoin has experienced remarkable growth in 2025, with its market capitalization surging to over $8.4 billion, making it the third-largest stablecoin behind USDT and USDC. USDe is a "synthetic dollar" backed by crypto-assets, and liquid staking tokens rather than currency-matched high-quality liquid assets (HQLA). When users mint USDe by depositing crypto-asset collateral, Ethena simultaneously opens an equivalent short position in perpetual futures markets, creating a delta-neutral hedge that offsets price movements in the underlying assets. The protocol generates yield through funding rates from perpetual swap positions and staking rewards on liquid ETH, which is distributed to holders of sUSDe (staked USDe). However, this mechanism carries significant risks, particularly during periods of negative funding rates in bear markets, which could erode the protocol's reserves and threaten the peg stability. https://docs.ethena.fi/ https://medium.com/@royvillanueva96/ethena-delta-hedging-and-algorithmic-stablecoins-4650da1c07a3
#CryptoAssets#DFC#Stablecoins#Ethena#USDe#Fintech
·ainvest.com·
Ethena USDe Jumps to 3rd in Stablecoin Market Cap Rankings
Making euro cash fit for the future
Making euro cash fit for the future
The European Central Bank (ECB) published a blog by Executive Board Member Piero Cipollone that argues that cash remains essential in the euro area as both a means of payment and a store of value, and should continue to be widely available and accepted alongside a future digital euro. Despite a declining share of cash in point-of-sale transactions, overall demand for banknotes is strong, with 30.4 billion notes worth €1.6 trillion in circulation as of June 2025 and growth resuming after a pause. Ensuring access is a priority: the proposed Legal Tender of Cash Regulation would set common indicators to monitor ATM and branch availability, recognizing banks’ primary role while noting cashback cannot replace deposits/withdrawals. Legal tender status means merchants—and especially public entities—should generally accept cash, with only narrow, proportionate exceptions. Cash also underpins resilience in crises, so the ECB, Commission, and national central banks are strengthening preparedness. Looking ahead, the ECB is redesigning banknotes with updated themes and enhanced security, targeting final designs by end‑2026, and emphasizes that a digital euro would complement, not replace, physical cash.
#Eurozone#Cash#ECB#Payments#Fintech#DFC
·ecb.europa.eu·
Making euro cash fit for the future
Decoupling age, period and cohort from euro cash use
Decoupling age, period and cohort from euro cash use
The European Central Bank (ECB) published an article that analyzes why cash remains a vital means of payment in the euro area despite long-standing predictions of a cashless society. Using recent data (2019–2024), it finds that while digital payments are growing and the share of cash in transactions is declining—especially among younger and middle-aged people—cash continues to play important roles: older adults use it more for everyday purchases, younger people often keep cash at home for precautionary reasons, and all age groups increasingly view it as an important payment option. The resilience of cash is shaped by overlapping factors such as habit, limited substitutability of digital payments, privacy and crisis concerns, and demographic shifts—meaning future payment systems should ensure continued access to and acceptance of cash alongside digital options, supporting payment choice, inclusion, and economic stability.
#Cash#Europe#Payments#Fintech#DFC
·ecb.europa.eu·
Decoupling age, period and cohort from euro cash use
Regulating Stablecoins: Comparing MiCAR and the GENIUS Act
Regulating Stablecoins: Comparing MiCAR and the GENIUS Act
A forthcoming Texas A&M University School of Law Legal Studies Research Paper compares the European Union’s MiCAR and the U.S. GENIUS Act approaches to regulating stablecoins. Both embody contrasting regulatory philosophies for stablecoin oversight. MiCAR establishes a dual categorization of stablecoins—asset-referenced tokens (ARTs) and e-money tokens (EMTs)—with tailored regimes for each, emphasizing comprehensive conduct obligations, strict liability for misleading disclosures, mandatory asset segregation, and strong, statutory redemption rights applicable to all holders. In contrast, the GENIUS Act defines a single “payment stablecoin” category, prioritizing operational requirements and, most distinctively, providing unprecedented legal protections in bankruptcy: it grants all holders statutory standing, excludes reserves from the bankruptcy estate, and gives stablecoin holder claims super-priority over all other creditors. While MiCAR relies on strict consumer protection rules and regulatory controls, the GENIUS Act centers its strongest protections around insolvency outcomes and allows for the development of additional consumer safeguards through future rulemaking, resulting in two robust but philosophically distinct approaches to stablecoin regulation.
#CryptoAssets#Regulation#Stablecoins#Europe#UnitedStates#Fintech
·papers.ssrn.com·
Regulating Stablecoins: Comparing MiCAR and the GENIUS Act
National Bank of Ukraine to test e-hryvnia digital currency
National Bank of Ukraine to test e-hryvnia digital currency
National Bank of Ukraine (NBU) Chairman Andriy Pyshny revealed the central bank's preparations for an e-hryvnia central bank digital currency (CBDC) pilot. The NBU already has an understanding of the potential architecture model and is currently completing the search for a technological partner. This is at least the third time that the NBU has considered issuing a CBDC, starting in 2019 with a proof-of concept (POC) and then restarting its e-hryvnia research in 2022, so maybe the third time is the charm!? https://bank.gov.ua/admin_uploads/article/Analytical%20Report%20on%20E-hryvnia.pdf (2019 POC) and https://bank.gov.ua/ua/news/all/natsionalniy-bank-predstaviv-uchasnikam-platijnogo-rinku-ta-rinku-virtualnih-aktiviv--proyekt-kontseptsiyi-e-grivni (2022)
#CBDC#Ukraine#Fintech#DFC
·newsukraine.rbc.ua·
National Bank of Ukraine to test e-hryvnia digital currency