e-DINAR :: Le porte-monnaie électronique tunisien
Currency in the Digital Era | Banco Central do Brasil
In an exploratory approach to the digitization of physical money, this academic essay intends to add value, while seeking solutions, by bringing to the reader’s knowledge some of the concepts, architectures, functions and applicable technologies, as well as consolidating part of the international experience in the theme.
Singapore wary of issuing digital currencies to public: MAS chief Ravi Menon
The Monetary Authority of Singapore (MAS) is largely avoiding the issuance of digital currencies to the public, with the managing director of the central bank noting the risks associated with doing so.
Cryptocurrency: Advancing Kazakhstan’s Economy and Investment?
Kazakhstan may issue the state- sponsored CryptoTenge, to regulate and integrate into its financial framework and to explore non-extractive industries. The currency would be a fiat currency, recognised as legal tender which is state-controlled.
First CryptoTenge, Now State Association: Kazakhstan Wakes Up To Cryptocurrency
Kazakhstan is sponsoring its own state cryptocurrency, the CryptoTenge, a digital asset tied to fiat which would likely function in a similar way to Russia’s CryptoRuble."
Digital rupiah study to be completed in 2020: BI - Business
Bank Indonesia head of transformation Onny Widjanarko said on Wednesday that a study on the possible issuance of digital rupiah by the central bank was projected to be completed in 2020.
Distributed Ledger Technology and Digital Assets - Policy and Regulatory Challenges in Asia
This report offers an analytical framework that allows for more systemic assessments of distributed ledger technology (DLT) and its applications. It examines the evolution and typology of the emergent technology, its existing and projected applications, and regulatory and policy issues that they entail. This report highlights the trends, concerns, and potential opportunities of DLTs, especially for Asian markets. It also identifies the benefits and risks to using DLT and offers a functional and proportional approach to these issues.
Regulating LIBRA: The Transformative Potential of Facebook’s Cryptocurrency and Possible Regulatory Responses by Dirk A. Zetzsche, Ross P. Buckley, Douglas W. Arner :: SSRN
Libra is the first private cryptocurrency with the potential to change the worldwide payment and monetary system landscape. Due to the scale and reach provided by its affiliation with Facebook, the question will be not whether, but how, to regulate it. This short paper introduces the Libra project and analyses the potential responses open to regulators worldwide.
Facebook Says It Won't Launch Crypto in India Due to Regulatory Issues
Facebook has said that current regulatory restrictions mean it won’t be launching its digital wallet service and cryptocurrency in India. The RBI has effectively banned banks from providing services to crypto-related firms.
Facebook to Senators: Libra Crypto Will Respect Consumer Privacy
“Similar to existing and widespread cryptocurrencies such as ethereum and bitcoin, transactions that take place directly on the Libra Blockchain are ‘pseudonymous,’ meaning that the user’s identity is not publicly visible.”
Why the Fed should oversee Facebook’s Libra | Sheila Bair
Sheila Bair: “It’s open to question whether Mark Zuckerberg and Facebook are the right stewards for a new global crypto-currency. But by firing this warning shot to government policy makers that such a change is coming and potentially coming soon, they have done a public service.”
PBOC Says Facebook’s Libra Must Be Under Central Bank Oversight
Mu said the PBOC’s research team tested Libra’s code and found it’s “still in an initial stage and the quality of the code isn’t stable.” He also said it’s questionable whether Libra would indeed use blockchain technology, because it can’t meet the high concurrent transaction requirements necessary for retail sales scenarios.
Inside the Congressional Staff Meeting About Libra
The Libra representatives kept selling Libra as a means of providing banking services to 1.7 billion unbanked people around the world. When challenged on how they were going to do that, and asked directly whether they’d figure out how exactly a digital currency would be an answer for people who can’t access credit currently, they said, “The short answer is no.” The phrase “the miracle of blockchain” was used at one point.
Gemini Dollar stablecoin circulating supply mysteriously plummets as Huobi balances disappear | CryptoSlate
The plummet in Gemini Dollar market cap started some time ago...
Gemini Dollar struggles to stay afloat with 88% decline in market Cap
The circulating supply of the Winklevoss twins’ stablecoin Gemini Dollar (GUSD) is plummeting. From a peak market capitalization of more than $100 million in December of 2018, the coin recently hit new lows of $10 million. https://www.cryptopolitan.com/gemini-dollar-down-88-percent-in-market-cap/
Philippines central bank lukewarm on launching own cryptocurrency
The Bangko Sentral ng Pilipinas (BSP) remains lukewarm to the idea of issuing its own digital currency despite the decision of Facebook to unveil its own cryptocurrency, Libra.
Korean Watchdog Warns of Financial Stability Risk From Facebook's Libra
South Korea's Financial Services Commission looks at what might occur if 2.4 billion Facebook users worldwide transfer one tenth of their bank deposits to Libra. Should that scenario come about, banks’ solvency would diminish, as would their loan reserves, representing a threat to emerging markets from the relocation of the capital out of those countries. The FSC also raised concerns that bank runs could occur during financial or foreign exchange crises, as people move their national fiat currency to Libra.
Libra announcement is forcing China’s central bank into research its own digital currency
Facebook’s plans to create its own cryptocurrency have forced China’s central bank into stepping up research into creating its own digital currency as Libra could potentially pose a challenge to Chinese cross-border payments, monetary policy and even financial sovereignty, Wang Xin, director of the PBOC’s research bureau.
Lawyers warn of Facebook’s Libra tax risks in Europe
European Libra users will have to treat their Libra holdings as an asset for capital gains tax purposes — and for the UK, HMRC confirms that, as a basket of currencies, Libra doesn’t qualify as a currency itself. “The problem would potentially be even more serious with no annual capital gains exemption in France, Italy or Spain and a much smaller €600 limit in Germany."
Libra Isn't a Cryptocurrency. It's a Glimpse of a New Asset Class
Even relatively simple fiat-backed stablecoins could be characterized as swaps or demand notes, both of which would be treated as securities. And the SEC’s head of digital assets, Valerie Szczepanik, confirmed at a hearing last week that it does not matter that the stablecoin 'does not have an expectation of profits' (with the usual caveat of “facts and circumstances”).
Facebook's Libra Lacks Foundational Components for Crypto Key Security
A review of their technical documentation describing the Libra protocol and the associated ecosystem, reveals that they left out the foundational components of user security: Protection of the private key, proof of user consent, decentralized compliance and global privacy.
A Monetary Review of Project Libra — Part 1: The Libra Reserve
This article seems to sppeculate that the Libra Association will effectively run open market FX operations to maintain the stability of the Libra against the currency basket. Although the article doesn't mention it, I guess it's implicit that the huge cash balances of Facebook ($50B+) and other Association members are in effect FX reserves for these purposes.
ZenGo Introduces Non-Custodial, Keyless Competitor to Calibra Wallet
The developers at ZenGo, an Israeli startup that recently released a keyless, non-custodial retail wallet, just published open source code for Libra’s first non-custodial wallet, just two weeks after Facebook’s announcement.
Bitcoin: Welcome to Bitfinex’s Second Tether Bubble
Our previous post in November last year provided compelling empirical evidence that USDT printing was used by Bitfinex to manipulate the BTC/USD price upwards during the fourth quarter of 2017. And until the current allegations are proved one can only conjecture, but we conclude that the crypto market is now entering its second tether bubble.
The Bank of Japan has no plans to issue digital currency
Deputy Governor Amamiya said the BOJ has no plans to issue digital currencies for now, partly due to uncertainties over how it affects conventional commercial banking. He also brushed aside the idea that central banks can boost the effectiveness of negative interest rate policies by issuing digital currencies, as it would require the elimination of cash.
Banks Around The World Dabbling in Crypto with Their Own Coin
JPM Coin (JP Morgan), USC (UBS and twelve others), J Coin (Mizuho and a consortium of Japanese banks), MUFG Coin (Bank of Tokyo-Mitsubishi UFG), and Signet (NY-based Signature Bank).
Libra and Financial Inclusion
"What the Libra discussion totally misses is how consumers are going to get value into the Libra system in the first place. If I have cash, how do I put funds on Libra? I’m going to need to go through a bank or other financial institution, and it’s not going to be free. Same if I want to take money out of Libra."
Facebook has found a place to park its $40bn+ cash reserves and everyone thinks its about crypto…
Libra is a massive money market fund that doesn’t pay any interest to coinholders, probably in part to avoid being qualified as a security by the SEC. It does, however, pay this interest to Libra Association members, who all have massive idle cash reserves to park profitably at the Libra Association. For example, Facebook, which has over $40 billion in cash liquidity, could "pre-mint" Libra, which it will then sell to users, and buy it back when they want to get out of it.
Libra's Unresolved Puzzles
My best guess is that Libra is meant to be like a mutual funds share, redeemable (by authorized resellers, not by the public directly) at the net asset value of a low-risk mutual fund diversified across several fiat currencies. The public can buy and sell Libra "coins" in exchange for existing fiat money. Also, unlike an ordinary mutual fund, which allows members of the public to buy shares directly and sell them directly back to the fund at their current net asset value, Libra only allows Resellers to interact directly with the Libra Reserve.
CBDCs could protect citizens from e-currency abuse, official says
Riksbank's Hanna Armelius: Central banks need to consider issuing digital currencies or leave citizens vulnerable to market power. Cashless societies could leave payment systems vulnerable to “increasing monopoly power … if there’s no sort of competition from central bank money.”