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Citigroup Looks to Issue Its Own Stablecoin to Smooth Payments
Citigroup Looks to Issue Its Own Stablecoin to Smooth Payments
According to CEO Jane Fraser during a post-earnings call, Citigroup is considering issuing its own stablecoin, as part of the bank’s broader digital assets strategy, which includes reserve management and crypto custody services, aiming to strengthen its position in the digital payments space. Fraser pointed to the supportive regulatory framework under the Genius Act, which enables banks to participate more fully in digital assets.
#CryptoAssets#Fintech#Stablecoins#Banks#Citigroup#UnitedStates#Regulation#DFC
·bloomberg.com·
Citigroup Looks to Issue Its Own Stablecoin to Smooth Payments
Third Progress Report on the Digital Euro Preparation Phase
Third Progress Report on the Digital Euro Preparation Phase
The European Central Bank (ECB) published its third progress report on the preparation phase of a digital euro. Since the second report, the ECB has made progress on the draft digital euro scheme rulebook, which aims to harmonize digital euro payments across the euro area. The ECB has also conducted extensive user research and experimentation engaging with market participants, merchants, and consumers through various sessions and focus groups, to ensure the digital euro meets the needs of end users and provide technical input to support the legislative process. The project's next steps include finalizing tender procedures to select providers for the digital euro platform and infrastructure, drafting the scheme rulebook, and testing and implementing the digital euro's technical specifications.
#CBDC#ECB#Eurozone#Fintech#DFC
·ecb.europa.eu·
Third Progress Report on the Digital Euro Preparation Phase
Mongolia's Central Bank Digital Currency (CBDC) Approach
Mongolia's Central Bank Digital Currency (CBDC) Approach
[October 1, 2023] Central Bank of Mongolia (CBM) Governor shared his thoughts on the country's potential adoption of a central bank digital currency (CBDC) through a dedicated project, reflecting a forward-thinking approach to adapting to the changing landscape of payments and finance. The central bank has examined both decentralized models utilizing blockchain and distributed ledger systems and centralized systems, highlighting certain limitations of decentralized models regarding their agility for payment applications. On the other hand, centralized systems are like the existing real-time payment mechanisms like ACH (Automated Clearing House) and RTGS (Real-Time Gross Settlement) systems. The CBM will continue researching and exploring potential CBDC-based solutions that align with the country's needs and objectives.
#Mongolia#Fintech#CBDC#DFC
·mongolbank.mn·
Mongolia's Central Bank Digital Currency (CBDC) Approach
FSB Chair Andrew Bailey Makes Stablecoins a Priority Ahead of G20 Meeting
FSB Chair Andrew Bailey Makes Stablecoins a Priority Ahead of G20 Meeting
In a letter to the G20, Financial Stability Board Chair Andrew Bailey called for further attention to be given to assessing the increasing role of stablecoins for payment and settlement purposes, on account of under-explored potential risks, in part due to the pace of market developments. He called for the FSB to continue to ensure that it is implementing its agreed recommendations, monitoring developments in this area and collaborating across jurisdictions and with the standard-setting bodies where relevant. https://www.fsb.org/uploads/P140725.pdf https://www.fsb.org/2023/07/high-level-recommendations-for-the-regulation-supervision-and-oversight-of-global-stablecoin-arrangements-final-report/
#Stablecoins#FSB#G20#Regulation#CryptoAssets#FinTech#DFC
·coindesk.com·
FSB Chair Andrew Bailey Makes Stablecoins a Priority Ahead of G20 Meeting
Stablecoins Have Long Road to Mainstream Payments, Mastercard Says
Stablecoins Have Long Road to Mainstream Payments, Mastercard Says
According to Mastercard's chief product officer, Jorn Lambert, stablecoins have a long way to go before becoming a mainstream payment tool. While stablecoins offer promising attributes like high speed and low costs, they lack essential attributes like a seamless user experience and wide distribution to consumers. Mastercard is positioning itself as a bridge between digital assets and traditional finance, providing infrastructure to make stablecoins usable at scale by leveraging its global network and security safeguards. However, Lambert notes that stablecoin adoption faces significant hurdles, including consumer adoption and friction in online checkout experiences, making it difficult to clear in the near-term.
#Stablecoins#MasterCard#Payments#Fintech#CryptoAssets#DFC
·bloomberg.com·
Stablecoins Have Long Road to Mainstream Payments, Mastercard Says
Stablecoin Growth - Policy Challenges and Approaches
Stablecoin Growth - Policy Challenges and Approaches
The BIS published a paper that examines the rapid growth of stablecoins and the resulting policy challenges for financial regulators. Despite promising stability, stablecoins exhibit significant price volatility and rarely trade at exact parity, raising questions about their reliability as payment instruments. The authors identify several critical policy concerns: stablecoins' use in illicit activities due to their pseudonymous nature and cross-border mobility; potential threats to monetary sovereignty as foreign currency-denominated stablecoins could undermine domestic monetary policy effectiveness; and systemic risks arising from stablecoin issuers' substantial investments in Treasury securities, which could impact monetary policy transmission and create fire sale risks during market stress. The bulletin concludes that the traditional regulatory principle of "same risks, same regulation" has limited applicability to stablecoins, necessitating bespoke regulatory frameworks that address their unique characteristics while leveraging blockchain traceability for enhanced oversight, particularly at interfaces with the regulated financial system.
#BIS#CryptoAssets#Regulation#Stablecoins#FinTech#DFC
·bis.org·
Stablecoin Growth - Policy Challenges and Approaches
Fundamentals of Modern Money and its Application to Sharia-compliant CBDC
Fundamentals of Modern Money and its Application to Sharia-compliant CBDC
Bank Negara Malaysia (BNM) published a paper that explores the fundamental nature of modern money—characterizing it as a credit relation and a promise to pay abstract value—and examines its implications for Shariah (Islamic law) analysis, particularly in the context of central bank digital currency (CBDC). It argues that modern money, unlike classical commodity-based money, is constituted by social, economic, and political relationships among individuals, banks, central banks, and the state. The authors highlight that traditional Shariah conceptions, which treat money as a tangible commodity, do not fully capture the essence of modern money. They propose a hybrid Shariah approach that recognizes modern money as both a means of payment and a credit instrument, suggesting that the rules of riba (usury) should apply to modern money in its various forms, including CBDCs, to ensure alignment with Islamic principles.
#Fintech#CBDC#IslamicFinance#Islamic
·bnm.gov.my·
Fundamentals of Modern Money and its Application to Sharia-compliant CBDC
Decrypting Crypto: How to Estimate International Stablecoin Flows
Decrypting Crypto: How to Estimate International Stablecoin Flows

The IMF published the results of a study that leveraged a combination of AI and machine learning to estimate the geographic distribution of international stablecoin flows. Analyzing $2 trillion in stablecoin transactions during 2024, it finds that stablecoin flows are highest in absolute terms in North America ($633 billion) and Asia-Pacific ($519 billion). However, the most significant flows relative to GDP were in Latin America/Caribbean (7.7%) and Africa/Middle East (6.7%). Additionally, intraregional flows in these two regions are notably lower, accounting for 14% and 12% of total flows originating from the region, compared to, for example, 34% in North America. This suggests that stablecoin use in Africa and Latin America is predominantly international, possibly driven by use cases such as remittances. The study also establishes a correlation between net stablecoin inflows into regions and the relative weakness of domestic currencies against the U.S. dollar, either suggesting that stablecoins serve as a mechanism to fulfill global demand for dollar-based assets for people that seek a hedge against currency depreciation, or that stablecoin flows could possibly be sizable enough to drive exchange rate dynamics.

#CryptoAssets#Fintech#Stablecoins#IMF#DFC#AI#MachineLearning#CrossBorder
·imf.org·
Decrypting Crypto: How to Estimate International Stablecoin Flows
Potential Economic Role of CBDCs and Euro- Denominated Stablecoins
Potential Economic Role of CBDCs and Euro- Denominated Stablecoins
The Oesterreichische Nationalbank published a paper that argues that digital euros and euro-denominated stablecoins can work together as "complementary pillars" of the future European digital finance landscape. The digital euro can provide a secure, universal payment infrastructure backed by central bank trust, with euro-denominated stablecoins offering programmable, cross-border capabilities that extend beyond the euro area. The authors contend that Europe has a strategic opportunity to lead in digital currency innovation by enabling this coexistence, potentially strengthening the euro's global role and reducing reliance on non-European payment systems. Based on detailed analyses of use cases, business models for banks, regulatory frameworks under MiCA, and macroeconomic implications, the paper concludes that well-designed digital monetary instruments can enhance financial stability while promoting innovation if supported by appropriate regulatory safeguards and strategic implementation.
#CBDC#CryptoAssets#Fintech#Eurozone#FinancialStability#Stablecoins#DFC
·oenb.at·
Potential Economic Role of CBDCs and Euro- Denominated Stablecoins
Stablecoins, DeFi, and Credit Creation
Stablecoins, DeFi, and Credit Creation
Galaxy Digital published an examination of how stablecoins and decentralized finance (DeFi) are fundamentally restructuring global credit intermediation, driven by three key trends: adoption as savings instruments in emerging markets with weak currencies, use as efficient cross-border payment rails competing with traditional systems like SWIFT, and access to above-market yields through DeFi protocols. The analysis argues that this growth will systematically drain deposits from traditional banks—particularly regional and emerging market institutions—while concentrating assets in US Treasury securities and major US financial institutions, effectively creating enforced credit contraction in certain regions while over-allocating credit to the US government. Galaxy Digital contends this represents a paradigm shift with stablecoin issuers emerging as significant players in government debt markets and potentially new credit intermediaries, ultimately creating an "efficient frontier of digital dollar investments" that could reshape monetary policy, financial stability, and the architecture of global finance.
#Stablecoins#DeFi#Fintech#CryptoAssets#DFC
·galaxy.com·
Stablecoins, DeFi, and Credit Creation
Tokenisation of government bonds: assessment and roadmap
Tokenisation of government bonds: assessment and roadmap
The BIS published a paper that examines the emerging market for tokenized government bonds, analyzing a dataset of 39 tokenized bonds (24 corporate, 15 government/supranational) worth $8 billion total against the backdrop of the $80 trillion global government debt market. The authors find that despite being in early experimental stages, tokenized bonds demonstrate modestly superior performance compared to conventional bonds from the same issuers - specifically exhibiting lower bid-ask spreads (19 vs 30 basis points), comparable issuance costs, and significantly lower minimum investment thresholds ($110,000 vs $185,000). The paper argues that tokenized government bonds could serve as a foundational element of a future tokenized financial system alongside tokenized central bank reserves and commercial bank deposits, potentially enhancing market efficiency through programmable features, faster settlement, and broader investor access. However, the authors maintain a cautious perspective, noting that widespread adoption faces substantial regulatory uncertainty, technological scalability challenges, and infrastructure development requirements, with the ultimate success dependent on addressing these implementation barriers rather than the modest technical advantages observed thus far.
#Tokenization#Fintech#BIS#CBDC#wCBDC#DepositTokens#DFC
·bis.org·
Tokenisation of government bonds: assessment and roadmap
RBA and DFCRC Project Acacia Update
RBA and DFCRC Project Acacia Update
The Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) provided an update on Project Acacia. It will explore how different forms of digital money and associated infrastructure could support the development of wholesale tokenized asset markets in Australia. 19 pilot use cases, and 5 proof-of-concept use cases, have been conditionally selected for this next stage of the project to take place over six months. The use cases involve a range of asset classes, including fixed income, private markets, trade receivables and carbon credits. Proposed settlement assets for the use cases include stablecoins, bank deposit tokens, and pilot wholesale central bank digital currency (CBDC), as well as new ways of using banks’ existing exchange settlement accounts at the RBA. Issuance of pilot wholesale CBDC for testing use cases will occur on a range of private and public-permissioned distributed ledger technology (DLT) platforms. The Australian Securities and Investments Commission (ASIC) will provide regulatory relief to participants to support and streamline the pilot.
#Australia#CBDC#Tokenization#Fintech#Stablecoins#Regulation#DFC
·rba.gov.au·
RBA and DFCRC Project Acacia Update
Stablecoins are trending, but what frictions and risks are getting overlooked?
Stablecoins are trending, but what frictions and risks are getting overlooked?
The Atlantic Council published an article by Ashley Lannquist that discusses the growing popularity of stablecoins, while highlighting the risks and frictions. The article points out regulatory gaps, potential financial instability, and the lack of transparency in reserve backing, which could lead to liquidity crises if many users redeem stablecoins simultaneously. It also examines geopolitical concerns, such as the use of stablecoins to evade sanctions, and operational risks like cybersecurity threats. Also, despite their utility in cross-border payments and decentralized finance (DeFi), stablecoins' value for everyday payments remains to be seen.
#Stablecoins#Fintech#CryptoAssets#DFC
·atlanticcouncil.org·
Stablecoins are trending, but what frictions and risks are getting overlooked?
Latest stablecoin depeg spotlights need for better attestation
Latest stablecoin depeg spotlights need for better attestation
Falcon USD (USDf), a crypto-backed, overcollateralized stablecoin issued by Falcon Finance, a subsidiary of DWF Labs experienced a depegging event, with its price dropping as low as $0.98 and briefly to $0.9432 before recovering to around $0.995. This incident has raised concerns about the transparency and quality of the collateral backing USDf, as well as the potential risk of a broader stablecoin crisis reminiscent of the Terra (LUNA) collapse. Critics and risk consultants have pointed to a lack of clarity regarding the composition and liquidity of USDf’s reserves, and have questioned its inclusion as collateral on DeFi lending platforms. In response to the depegging and growing scrutiny, DWF Labs’ CEO has pledged to provide a more detailed breakdown of the assets backing USDf.
#CryptoAssets#Stablecoins#Fintech#DFC
·ledgerinsights.com·
Latest stablecoin depeg spotlights need for better attestation
Pakistan planning CBDC pilot
Pakistan planning CBDC pilot
The State Bank of Pakistan is reportedly planning a central bank digital currency (CBDC) pilot. Governor Jameel Ahmad said that the central bank is building up appropriate capacity and hoped to roll out a pilot soon. However, this should be taken with a grain of salt, since the central bank has twice before made false starts to CBDC work, most recently in 2023. https://propakistani.pk/2023/07/20/sbp-working-on-pakistans-first-ever-digital-currency-sbp-governor/
#CBDC#Pakistan#Fintech#DFC
·ledgerinsights.com·
Pakistan planning CBDC pilot
Myanmar Central Bank to Introduce Digital Currency
Myanmar Central Bank to Introduce Digital Currency
The Central Bank of Myanmar (CBM) reportedly plans to introduce a central bank digital currency to reduce the use of banknotes. The CBM has formed a committee of 13 members, including a deputy governor, to study and analyse the best methods, technologies, and regulatory frameworks to use in ensuring the successful introduction of the CBDC into the economy, as well as assess its potential impacts on payments systems and monetary policy. The committee will also be responsible for overseeing and maintaining the infrastructural foundations, funding, and regulation of the digital currency after it is introduced.
#CBDC#Fintech#Myanmar#DFC
·myanmar-now.org·
Myanmar Central Bank to Introduce Digital Currency
On the foreign exchange dimension of cross-border payments
On the foreign exchange dimension of cross-border payments
Ousmène Jacques Mandeng argues that the current foreign exchange settlement system perpetuates the dollar's dominance in international payments and proposes that transitioning to digital central bank currencies (CBDCs) could facilitate greater currency diversification. Mandeng contends that the U.S. administration's policy stance "seems geared towards undermining the very foundations of the unique international role of the dollar," making the quest for alternative models more urgent , while noting that the dollar represents "one leg in 9 out of 10 foreign exchange transactions" in a market with $7.5 trillion daily turnover. He identifies a fundamental problem in current settlement mechanisms: the reliance on multilateral netting to reduce funding requirements creates incentives for concentration around major currencies, as "the lower the number of counterparties and currencies, the greater the scope for netting" , which reinforces market concentration and discourages diversification. Mandeng proposes that the mBridge CBDC project's architecture—which enables instant payment-versus-payment settlement in digital central bank money—could eliminate settlement risk while reducing the need for netting, thereby lowering barriers for smaller currencies and promoting a more multipolar monetary system.
#Fintech#DFC#CBDC#CrossBorder#Payments#PaymentSystems
·economicsadvisory.com·
On the foreign exchange dimension of cross-border payments
Deutsche Bank and DWS secure license for euro-denominated stablecoin
Deutsche Bank and DWS secure license for euro-denominated stablecoin
The joint venture AllUnity, formed by banking giant Deutsche Bank and asset management firm DWS, obtained authorization from Germany’s Federal Financial Supervisory Authority (BaFin) to launch a euro-denominated stablecoin. AllUnity was granted an Electronic Money Institution (EMI) license, paving the way for the debut of EURAU, a euro-backed stablecoin fully compliant with the Markets in Crypto-Assets Regulation (MiCA) framework. EURAU will feature a transparent proof-of-reserve system and regular financial reporting. The stablecoin is specifically designed to integrate into the operational flows of regulated institutions, fintech platforms, and corporate treasuries.
#Fintech#Stablecoins#Eurozone#Germany#Regulation#DFC
·atlas21.com·
Deutsche Bank and DWS secure license for euro-denominated stablecoin
Oversight of the issuance of central bank digital currencies
Oversight of the issuance of central bank digital currencies
[July 2023] The Banque Centrale des Etats de L'Afrique de L'Ouest (BCEA) launched a research project, under the aegis of its FinTech Committee, to assess the utility of issuing central bank digital currency (CBDC) in the West African Monetary Union (WAMU) region (Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo). The mandate of the project group is to identify the objectives, challenges, and risks related to the CBDC issuance within WAMU, conduct a feasibility study, including the identification of use cases, prerequisites, key success factors, risk control mechanisms, and design options for CBDCs, assess the potential impact of CBDCs on the roles and activities of the BCEAO, and review potential impact on credit institutions, microfinance institutions, other financial ecosystem players, and financial inclusion.
#Fintech#CBDC#Africa#DFC#WestAfricanStates
·bceao.int·
Oversight of the issuance of central bank digital currencies
BEAC launches discussions on the creation of a central bank digital currency
BEAC launches discussions on the creation of a central bank digital currency
[September 2023] The Banque des Etats de l’Afrique Centrale (BEAC) is exploring issuing a central bank digital currency (CBDC) for its six member countries (Cameroon, Central African Republic, Chad, Equatorial Guinea, Gabon, and the Republic of the Congo). On September 13, 2023, Governor Abbas Mahamat Tolli, signed Decision No. 144/GR/2023 to establish a working group to monitor and implement the work related to this project, in close collaboration with the International Monetary Fund (IMF). The BEAC had published a research paper in 2021 on the topic ("are central bank digital currencies a response to cryptocurrencies"). https://www.imf.org/en/Publications/CR/Issues/2023/12/21/Central-African-Economic-and-Monetary-Community-Common-Policies-of-Member-Countries-and-542897
#Africa#CBDC#Fintech#CentralAfricanStates#DFC
·droitmediasfinance.com·
BEAC launches discussions on the creation of a central bank digital currency
CBDC in a Highly Dollarized Emerging Market Economy: The Case of Cambodia
CBDC in a Highly Dollarized Emerging Market Economy: The Case of Cambodia
[March 20, 2024] The Asian Economic Policy Review (AEPR) published a paper on the Project Bakong retail payment platform, launched by the National Bank of Cambodia (NBC) in October 2020. It is built on Hyperledger Iroha distributed ledger technology (DLT), and accessible through a mobile app that allows users to send, receive, deposit, and make QR code payments in Cambodian Riel (KHR) and USD. It is not a traditional interbank payment system in that all Bakong account balances are fully backed by reserves held in NBC wholesale settlement accounts, rather than being fractionally backed like regular deposits and deposit tokens. The NBC records Individual end-user Bakong balances which are considered "cash equivalents" according to the Bakong 2020 white paper. The paper takes that to mean that the NBC explicitly guarantees the end-user balances, which it argues makes Bakong a retail central bank digital currency (CBDC) platform according to the BIS (2020) CBDC definition (i.e., "a direct central bank liability").https://bakong.nbc.gov.kh/download/NBC_BAKONG_White_Paper.pdf
#CBDC#Cambodia#Fintech#DFC
·onlinelibrary.wiley.com·
CBDC in a Highly Dollarized Emerging Market Economy: The Case of Cambodia
Ubyx Whitepaper: Stablecoin Ubiquity
Ubyx Whitepaper: Stablecoin Ubiquity
[March 2025] Ubyx published a whitepaper on its proposed clearing system designed to enable universal redemption of stablecoins at par value through traditional financial institutions, thereby solving the "many-to-many" network problem that currently limits stablecoin adoption. The system would allow users to deposit any participating stablecoin into their existing bank or fintech accounts at full value, transforming stablecoins from specialized crypto assets into cash equivalents under accounting standards (IAS7) and enabling their use as general-purpose digital money. Ubyx proposes to create a mutualized acceptance network connecting stablecoin issuers, receiving institutions, settlement banks, and scaling partners through standardized APIs and a comprehensive rulebook, while maintaining peer-to-peer transaction capabilities and regulatory compliance through multiple layers of KYC, AML, and fraud prevention checks. The system would begin as a centralized platform but transition toward progressive decentralization through a DAO governance structure, with economic incentives aligned across all participants through transaction fees, redemption revenues, and the Ubyx token ecosystem, ultimately aiming to usher in a "stablecoin epoch" where digital currencies achieve ubiquity as mainstream payment methods. https://github.com/UbyxRules/Ubyx-Rulebook
#Fintech#Stablecoins#CryptoAssets#DFC
·ubyx.xyz·
Ubyx Whitepaper: Stablecoin Ubiquity
Building tomorrow’s markets: the digitalisation of finance
Building tomorrow’s markets: the digitalisation of finance
The Bank of England's (BoE's) Financial Market Infrastructure Executive Director, Sasha Mills, outlined the central bank's vision for digitalizing wholesale financial markets through tokenization of assets and smart contracts on distributed ledger technology (DLT). She pointed to the Bank's updated thinking on settlement assets, particularly allowing systemic stablecoins to be backed by remunerated high quality liquid assets (HQLAs) rather than solely unremunerated central bank deposits. Ms. Mills highlighted progress through the Digital Securities Sandbox and the UK Government's Digital Gilt pilot (DIGIT), while outlining plans for enhanced access to the upgraded real time gross settlement (RTGS) service and exploring synchronization interfaces to enable conditional settlement across different ledger systems. She emphasized that the future financial system will likely be a "mixed ecosystem" where new and old structures coexist, requiring interoperability between different systems, and called for moving beyond theoretical discussions to practical implementation of these digital foundations.Ms. Mills also floated potential holding limits for systemic stablecoins, likely be in the region of £10,000 to £20,000 for individuals and £10 million for businesses.
#Fintech#UnitedKingdom#CryptoAssets#Stablecoins#Settlement#Regulation#DFC
·bankofengland.co.uk·
Building tomorrow’s markets: the digitalisation of finance
Driving Financial Inclusion Through CBDCs: A Methodology for Implementation
Driving Financial Inclusion Through CBDCs: A Methodology for Implementation
The United Nations Development Programme (UNDP) published a five-stage methodology for implementing central bank digital currencies (CBDCs) to advance financial inclusion in emerging economies. The methodology progresses through: (1) understanding financial inclusion barriers and user needs, (2) CBDC preparation including cost-benefit analysis and stakeholder coordination, (3) user-centric design and prototyping with emphasis on privacy protection and accessibility, (4) piloting to test assumptions and gather feedback, and (5) full implementation with ongoing monitoring and capacity building. The paper emphasizes that retail CBDCs, when properly designed with features like offline functionality and simplified identification requirements, can address persistent barriers such as high transaction costs, limited documentation, and poor connectivity that exclude underserved populations from traditional financial services. However, the authors stress that CBDCs should be viewed as one component of broader Digital Public Infrastructure rather than standalone solutions, and successful implementation requires robust stakeholder engagement, regulatory frameworks, and continuous adaptation to ensure these digital currencies effectively serve vulnerable populations while maintaining security and sustainability.
#CBDC#FinancialInclusion#Fintech#UnitedNations#DFC
·undp.org·
Driving Financial Inclusion Through CBDCs: A Methodology for Implementation
Central Bank of Bahrain Issues Framework for Regulating Stablecoins
Central Bank of Bahrain Issues Framework for Regulating Stablecoins
The Central Bank of Bahrain (CBB) introduced a framework for licensing and regulating stablecoin issuers. It mandates that any entity seeking to issue, mint, burn, custody, or offer stablecoins from within Bahrain must be licensed and obtain CBB approval—unregulated activity is prohibited. Licensed stablecoin issuers will be permitted to issue single currency stablecoins backed by Bahraini Dinar (BHD), United States Dollar (USD), or any other fiat currency acceptable by the CBB, with a strict 1:1 high-quality liquid reserve requirement (cash and demand deposits held at banks with at least an AA‑ credit rating or its equivalent, debt securities issued by the CBB, or repurchase agreements (repos) backed by short‑term government money‑market instruments). The module also allows yield-bearing variants—returns generated solely from interest or Sharia-compliant rewards on reserve assets—but caps issuers from offering interest tied to user balances. https://www.cbb.gov.bh/wp-content/uploads/2024/10/Stablecoin-Issuance-and-Offering-Module.pdf
#Regulation#Stablecoins#Bahrain#Fintech#CryptoAssets#DFC
·cbb.gov.bh·
Central Bank of Bahrain Issues Framework for Regulating Stablecoins
How XRP could undermine Ripple's move for national trust bank charter
How XRP could undermine Ripple's move for national trust bank charter
Ripple Labs has applied for a national trust bank charter from the Office of the Comptroller of the Currency (OCC) to potentially bring its RLUSD stablecoin under federal regulation as part of a dual-track strategy alongside its existing state-regulated path through Standard Custody & Trust. The application represents a hedging strategy, as federal oversight would provide institutional credibility and improve chances of obtaining a Federal Reserve master account, which would enable direct payments and potentially allow stablecoin reserves to be held at the central bank. However, Ripple faces a significant regulatory challenge: under Basel III banking rules, its substantial XRP cryptocurrency holdings would require dollar-for-dollar capital reserves, while those same XRP holdings cannot be counted as qualifying capital because they are classified as intangible assets—creating a potentially prohibitive capital adequacy problem that could undermine the charter application unless addressed through restructuring, such as routing the charter through a subsidiary like Standard Custody rather than directly through Ripple Labs.
#Fintech#Regulation#Ripple#UnitedStates#XRP#CryptoAssets#Stablecoins#DFC
·ledgerinsights.com·
How XRP could undermine Ripple's move for national trust bank charter
A Macroeconomic Model of Remunerated Central Bank Digital Currency
A Macroeconomic Model of Remunerated Central Bank Digital Currency
The U.S. National Bureau of Research (NBER) published a paper that develops a calibrated New Keynesian DSGE model featuring monopolistic banks to assess the macroeconomic impact of introducing a remunerated central bank digital currency (CBDC). The analysis shows that households gain from enhanced liquidity services and higher deposit interest rates due to reduced bank market power, while banks experience lower profits and lending volumes. Exploring economies across different interest rate regimes, the authors identify significant welfare improvements from remunerated CBDC adoption, especially in economies with high interest rates where banks have substantial market power in deposit markets. They propose a practical CBDC interest-rate setting rule—setting it as the greater of zero and the policy rate minus one percentage point—which closely approximates the optimal rate found in their model.
#NBER#CBDC#Fintech#FinancialStability#DFC
·nber.org·
A Macroeconomic Model of Remunerated Central Bank Digital Currency
A Theory Model of Digital Currency with Asymmetric Privacy
A Theory Model of Digital Currency with Asymmetric Privacy
This paper by McGill University's Katrin Tinn proposes an "asymmetric privacy" design for central bank digital currencies (CBDCs) to resolve the trade-off between consumer privacy and regulatory efficiency. Traditional payment systems face a dilemma: fully private systems (like cash) protect privacy but create costly auditing problems for taxation and financing, while transparent digital systems enable efficient oversight but cause privacy concerns that distort consumer behavior. The proposed "P-Hybrid CBDC" solution makes consumer spending private (protecting money senders) while keeping firm revenues publicly observable (revealing money receivers), implementable through technologies like Zero-Knowledge proofs or anonymized cards. The theoretical model shows this asymmetric design achieves optimal outcomes by enabling efficient financial contracting and tax collection while minimizing privacy-related market distortions, with welfare benefits increasing at scale. Central banks are well-positioned to implement such systems that maximize utility across all stakeholders while maintaining compliance and privacy.
#CBDC#Privacy#Fintech#FinancialIntegrity
·papers.ssrn.com·
A Theory Model of Digital Currency with Asymmetric Privacy
Stripe will help Shopify merchants to accept stablecoin payments
Stripe will help Shopify merchants to accept stablecoin payments
[June 12, 2025] Stripe will form a deeper partnership with Shopify that will enable millions of Shopify merchants across 34 countries to accept stablecoin payments in USDC (USD Coin). Customers will be able to pay with USDC on the Base blockchain using their preferred crypto wallet, while merchants can choose to receive payments in their local currency deposited to their bank account or transfer funds directly as USDC to an external wallet. Stripe Connect platforms in the U.S. will also be able to enable stablecoin payments for their users.
#Fintech#Payments#Stablecoins#Stripe#USDC#CryptoAssets#DFC
·stripe.com·
Stripe will help Shopify merchants to accept stablecoin payments
Fiserv Launches New FIUSD Stablecoin for Financial Institutions
Fiserv Launches New FIUSD Stablecoin for Financial Institutions
[June 23, 2025] Fiserv plans to launch a new digital asset platform featuring the FIUSD stablecoin, that will leverage infrastructure from Paxos and Circle, operate on the Solana blockchain, and be available at no additional cost to Fiserv's approximately 10,000 financial institution clients and six million merchant locations that process 90 billion transactions annually. FIUSD is designed to provide banks with 24/7 settlement capabilities and streamlined processes while maintaining full control over customer experience through easy integration with existing Fiserv platforms like Experience Digital and Commercial Center, with built-in compliance features including fraud monitoring and risk management.
#CryptoAssets#Stablecoins#Fintech#UnitedStates#DFC
·investors.fiserv.com·
Fiserv Launches New FIUSD Stablecoin for Financial Institutions