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Stablecoins and Crypto Shocks: An Update
Stablecoins and Crypto Shocks: An Update
The New York Federal Reserve Bank (NY Fed) published an article that discusses the evolution and growth of stablecoins, noting their significant increase in market capitalization since 2019, primarily concentrated in Tether and USDCoin. It highlights a shift in collateral towards U.S. Treasury securities and reverse repurchase agreements and finds that stablecoins, especially riskier ones, experience capital inflows following large increases in bitcoin prices, reflecting a link between stablecoin demand and overall crypto ecosystem activity, which updates previous findings about outflows during negative bitcoin price shocks for riskier stablecoins.
#CryptoAssets#Fintech#Stablecoins#DFC
·libertystreeteconomics.newyorkfed.org·
Stablecoins and Crypto Shocks: An Update
Mastercard unveils end-to-end capabilities to power stablecoin transactions
Mastercard unveils end-to-end capabilities to power stablecoin transactions
"Mastercard is advancing the future of payments, finance and technology with new, global end-to-end stablecoin acceptance and payments capabilities, to ensure that people and businesses can make and receive stablecoin payments – anytime, anywhere. While banks and fintechs are increasingly engaging with solutions built on stablecoins, global ubiquity and scale is contingent on everyday utility, seamless integration into existing financial systems, and an intuitive user experience. To allow consumers and businesses to use stablecoins as easily as the money in their bank accounts, Mastercard is providing an integrated, 360-degree approach..."The company has partnered with a host of crypto natives such as MetaMask, Kraken, Gemini, Bybit, Crypto.com and Binance on wallet enablement and card issuance and acceptance. Now it is working with OKX to launch the OKX Card.
#MasterCard#Stablecoins#CryptoAssets#Fintech#DFC
·mastercard.com·
Mastercard unveils end-to-end capabilities to power stablecoin transactions
Stripe starts testing stablecoin product based on Bridge
Stripe starts testing stablecoin product based on Bridge
"Last year Stripe spent $1.1 billion acquiring Bridge, the company that provides cross border API infrastructure for stablecoin payments. On April 25, 2025 a member of Stripe’s crypto product team, Jennifer Lee, announced on X that the company is starting to test its Bridge-based product and invited companies outside the US, UK and EU who want to access dollars. She didn’t mention which stablecoins solutions would be offered initially."
#DFC#Fintech#Stripe#CryptoAssets#Stablecoins
·ledgerinsights.com·
Stripe starts testing stablecoin product based on Bridge
Caitlin Long slams US Fed over stablecoin policy favoring big banks
Caitlin Long slams US Fed over stablecoin policy favoring big banks
Unlike the other U.S. banking regulators, the Fed did not roll back its guidance that blocks banks from engaging directly with crypto-assets. This creates operational challenges for banks looking to offer crypto custody services, particularly around covering gas fees for on-chain transactions — a standard practice for crypto custodians but restricted under guidance that was left in place. The Fed also continues to prohibit banks from issuing stablecoins on permissionless blockchains, while the other regulatory agencies rolled that back. https://x.com/CaitlinLong_/status/1916570716880933266
#CryptoAssets#Fintech#Regulation#Stablecoins#UnitedStates#DFC
·cointelegraph.com·
Caitlin Long slams US Fed over stablecoin policy favoring big banks
U.S. FRB withdraws guidance for banks related to their crypto activities
U.S. FRB withdraws guidance for banks related to their crypto activities
The U.S. Federal Reserve Board (FRB) rescinded its 2022 supervisory letter establishing an expectation that the banks it regulates and supervises provide advance notification of planned or current crypto-asset activities. As a result, the FRB will no longer expect banks to provide notification and will instead monitor banks' crypto-asset activities through the normal supervisory process. The FRB is also rescinding its 2023 supervisory letter regarding the supervisory nonobjection process for state member bank engagement in dollar token activities.
#CryptoAssets#Regulation#UnitedStates#Stablecoins#Fintech#DFC
·federalreserve.gov·
U.S. FRB withdraws guidance for banks related to their crypto activities
CBDCs included in the EAC Draft Cross-Border Payment System Masterplan
CBDCs included in the EAC Draft Cross-Border Payment System Masterplan
The East African Community (EAC) Draft Cross-Border Payment System Masterplan was validated by its eight member countries (Burundi, the Democratic Republic of Congo, Kenya, Rwanda, Somalia, South Sudan, Uganda and Tanzania). The Masterplan aims to enhance the speed, security, affordability and integration of payment systems across the region. It tackles key obstacles such as fragmented regulations, high transaction costs, and limited interoperability by outlining twenty targeted initiatives. These include a regional instant retail payment switch, and exploring using central bank digital currencies (CBDCs) for regional transactions.
#CBDC#Fintech#CrossBorder#Payments#FastPayments#DFC#EastAfricanCommunity
·eac.int·
CBDCs included in the EAC Draft Cross-Border Payment System Masterplan
Bank of Korea "Project Hangang River" is a deposit token pilot
Bank of Korea "Project Hangang River" is a deposit token pilot
At a briefing held at the Bank of Korea on April 21, 2025, Deputy Governor Lee Jong-ryul reportedly pointed out that the "Project Hangang River" three-month pilot that started on April 1, 2025, is more about experimenting with "deposit tokens," a stablecoin issued by domestic commercial banks, than the central bank digital currency (CBDC) issued by the Bank of Korea. As of April 20, 51,766 electronic wallets capable of using deposit tokens had been opened, and a cumulative total of 29,251 transactions had occurred from April 1 to April 20.
#CBDC#Fintech#Korea#DFC#DepositTokens
·businesskorea.co.kr·
Bank of Korea "Project Hangang River" is a deposit token pilot
Nigeria, China to sign digital currency deal to reduce dollar reliance
Nigeria, China to sign digital currency deal to reduce dollar reliance
Nigeria will reportedly sign a deal to enable a direct conversion of naira to digital renminbi (RMB) according to Nigeria-China Strategic Partnership (NCSP) Director-General Joseph Tegbehas. Speaking at a conference in Lagos, he said the agreement could reduce Nigeria’s dependence on the United States dollar. The NCSP jointly established ivy the Chinese and Nigerian governments in November 2024 under the leadership of President Bola Ahmed Tinubu following agreements reached with President Xi Jinping at FOCAC 2024, aiming to deepen economic, trade, and investment relations between the two nations. It serves facilitate high-impact partnerships that align with Nigeria’s development priorities and China’s Belt and Road Initiative. But there has not yet been an announcement on the NCSP website regarding the RMB deal. https://ncsp.gov.ng/ [
#CBDC#Nigeria#China#CrossBorder#Fintech#DFC
·vanguardngr.com·
Nigeria, China to sign digital currency deal to reduce dollar reliance
PayPal Unlocks Rewards for Holding PayPal USD
PayPal Unlocks Rewards for Holding PayPal USD
Starting in Summer 2025, PayPal will pay U.S. users 3.7% annually in rewards on holdings of PayPal USD (PYUSD) in their PayPal or Venmo wallets. Users will be able to immediately use any rewards received to send to other users, fund international transfers, exchange for fiat, or make purchases at millions of merchants with PayPal Checkout.
#CryptoAssets#Fintech#PayPal#Stablecoins#PYUSD#Venmo#DFC
·newsroom.paypal-corp.com·
PayPal Unlocks Rewards for Holding PayPal USD
Circle Announces Payments Network to Transform Global Money Movement
Circle Announces Payments Network to Transform Global Money Movement
Circle will be launching the Circle Payments Network (CPN) to connect financial institutions to enable real-time settlement of cross-border payments using regulated stablecoins. CPN will require participants to meet strict eligibility standards, including licensing, AML/CFT compliance, financial risk management, and cybersecurity protocols. By leveraging USDC, EURC, and other regulated stablecoins, CPN will enable seamless connectivity to domestic real-time payment systems worldwide, while upholding the compliance, security, and trust required for financial institutions to meet their regulatory obligations. Powered by smart contract infrastructure and modular APIs, the network will enable third-party developers to build advanced modules, app services, and automated financial workflows directly on top of CPN.
#CrossBorder#CryptoAssets#Fintech#Stablecoins#Payments#USDC#Circle#DFC
·circle.com·
Circle Announces Payments Network to Transform Global Money Movement
Bank of Korea to Add P2P Transfers to CBDC Trials by October
Bank of Korea to Add P2P Transfers to CBDC Trials by October
The Bank of Korea (BOK) “Project Hangang River" wholesale central bank digital currency (CBDC) backed tokenized deposit pilot is reportedly preparing to launch a second phase as early as October. The current three-month (April 1 to June 30, 2025) phase involves about 100,000 participants, and is limited to person-to-business (P2B) payments (for goods and services at online and offline merchants). In the next phase, person-to-person (P2P) transfers will be added, along with expanded use cases and a full rollout of a digital voucher program for welfare payments by local governments.
#CBDC#Korea#Fintech#wCBDC#DepositTokens#DFC
·businesskorea.co.kr·
Bank of Korea to Add P2P Transfers to CBDC Trials by October
Majority of Dutch consumers willing to use digital euro
Majority of Dutch consumers willing to use digital euro
De Nederlandsche Bank (DNB) surveyed 2,000 Dutch consumers to find out whether they would be willing to use an offline-digital euro (D€) that was as private as cash (funds are stored locally and no third party involved in a payment). Participants were randomly allocated funds to allocate across cash, debit cards and D€ for household expenses over a month. Two-thirds used at least some of the D€, with 75% of non-users not seeing any added value in it, plus 55% expressing unfamiliarity with it, and 48% a lack of trust in it. 25% of non-users cited privacy concerns. Only 28% of users said that the extra privacy of an offline D€ was a reason for using the D€. Also, half the participants were told there was a 50% that their debit cards would be nonfunctional over the month. Those in this group chose to keep not only more cash but also more D€ in their wallets. Also, 42% of participants said they would prefer to keep their D€ on a payment card; 33% would prefer an app and 26% have no preference. https://www.dnb.nl/media/vbrkbg4x/dnb-os-a5-holding-limieten-digitale-euro.pdf
#CBDC#Eurozone#Netherlands#Fintech#Offline#DFC
·dnb.nl·
Majority of Dutch consumers willing to use digital euro
BEAC requests IMF CBDC technical assistance
BEAC requests IMF CBDC technical assistance
[March 11, 2025] Banque des États de l'Afrique Centrale (BEAC) has requested IMF technical assistance to explore the feasibility of introducing a central bank digital currency (CBDC). BEAC serves six central African countries which form the Economic and Monetary Community of Central Africa (CEMAC - Cameroon, Central African Republic, Chad, Equatorial Guinea, Gabon, and the Republic of the Congo) all of whom use the CFA franc which is pegged to the euro (€1 = CFA 655.957). The BEAC has set up a CBDC working group that will coordinate with the other subregional institutions with the aim of developing a coherent and appropriate regulatory framework to monitor and manage the new risks associated with the emergence of digital payment methods.
#Fintech#CBDC#DFC#CEMAC
·imf.org·
BEAC requests IMF CBDC technical assistance
Haitian central bank puts CBDC work on the back burner
Haitian central bank puts CBDC work on the back burner
[December 10, 2024] The Bank of the Republic of Haiti (BRH) conveyed to IMF staff, in the context of its 2024 Article IV consultation, that it does not plan to immediately implement central bank digital currency (CBDC). However, it stressed the importance of having put a placeholder in the central bank framework, in anticipation of future implementation. IMF staff argued that devoting time and resources to considering a digital money is premature at this stage, given other pending priorities and indicated that if the BRH decides to proceed it should consider all aspects of the project’s desirability and feasibility, including a robust evaluation of costs and risks, before proceeding.
#Fintech#CBDC#Haiti#DFC
·imf.org·
Haitian central bank puts CBDC work on the back burner
Some Perspectives on the Regulation of Stablecoins
Some Perspectives on the Regulation of Stablecoins
The BIS's Jon Frost co-authored a paper that explores the emerging regulatory landscape for stablecoins. It outlines their rapid growth and potential systemic risks they pose, especially as they become more integrated into payment systems and financial markets. The paper advocates for a balanced regulatory approach that ensures financial stability, consumer protection, and innovation. It examines existing regulatory frameworks, including banking, securities, and payments laws, and suggest that a tailored regulatory regime may be necessary to effectively oversee stablecoin issuers and related service providers. The paper also highlights international efforts and the importance of global coordination in regulating stablecoins.
#CryptoAssets#Regulation#Stablecoins#Fintech#DFC#BIS
·scholarship.law.duke.edu·
Some Perspectives on the Regulation of Stablecoins
Kyrgz central bank granted right to issue digital som
Kyrgz central bank granted right to issue digital som
Kyrgyz Republic President Sadyr Japarov signed the constitutional law that will enable the country's central bank to launch a digital som pilot project and create a legal basis for the central bank digital currency (CBDC). The law was adopted by the Parliament on March 20, 2025. The law defines the digital som as the national currency of the Kyrgyz Republic in digital form, which is legal tender in the country. The central bank is granted the exclusive right to issue the digital som, and will establish the procedure for its issue and circulation, as well as organize and ensure functioning of the digital som platform.
#CBDC#Kyrgyzstan#Fintech#DFC
·24.kg·
Kyrgz central bank granted right to issue digital som
Belarus to introduce digital ruble in H2 2026 - NBB
Belarus to introduce digital ruble in H2 2026 - NBB
The National Bank of Belarus (NBB) reportedly plans to launch a digital ruble in the second half of 2026, starting with "economic agents" and expanding to government agencies and individuals in 2027. The central bank is cooperating very closely with Russian central bank and its central bank digital currency (CBDC) efforts to facilitate digital ruble cross-border transactions. Also, the NBB is working closely with government authorities to ensure that CBDC transactions can be tracked along the entire chain.
#Belarus#CBDC#Fintech#DFC
·interfax.com·
Belarus to introduce digital ruble in H2 2026 - NBB
Kyrgyz central bank advances digital som experiments
Kyrgyz central bank advances digital som experiments
[November 20, 2024] The National Bank of the Kyrgyz Republic (NBK) convened a meeting with the relevant ministries and agencies of the Kyrgyz Republic to discuss Phase II of the project for testing the prototype of the Digital Som platform in the context of state and social payments. During the meeting, the National Bank presented a draft architecture for the implementation of the "Balaga Suyunchu" (a one-time payment upon the birth of a child) project on the Digital Som platform. An agreement was reached to continue joint implementation of the project with technical specialists.
#Kyrgyzstan#Fintech#CBDC#DFC
·nbkr.kg·
Kyrgyz central bank advances digital som experiments
Central Bank of Colombia wholesale CBDC proof-of-concept
Central Bank of Colombia wholesale CBDC proof-of-concept
Colombia's Banco de la República (BanRep) is exploring the use of a wholesale central bank digital currency (CBDC) in a tokenized financial market based on distributed ledger technology (DLT). As part of this agenda, BanRep, in collaboration with the Ministry of Information Technology and Communications, Ripple and Peersyst, is conducting an experiment to issue wholesale CBDC and tokenized securities. This involves building a scalable blockchain prototype in a test environment with simulated participants. The experiment evaluates efficiencies in delivery versus s payment (DVP) for primary issuance and in the clearing and settlement of transactions in the secondary market, as well as direct CBDC transfers between the wallets of financial entities on the blockchain.
#Fintech#Tokenization#CBDC#wCBDC#DepositTokens#Colombia#Ripple#DFC#Settlement
·bis.org·
Central Bank of Colombia wholesale CBDC proof-of-concept
China links CBDC payments to 10 ASEAN, 6 Middle eastern countries
China links CBDC payments to 10 ASEAN, 6 Middle eastern countries

According to Nigerian news outlet Proshare, the People’s Bank of China (PBOC) has announced that its digital RMB cross-border settlement system will be fully connected to the ten ASEAN nations and six Middle Eastern countries. Needless to say, the crypto press took the ball and ran with it, some even saying that the full-scale launch had taken place on exactly March 17, 2025. However, this is likely fake news based on cobbling together disparate stories from over the last few years, like those around the ongoing mBridge proof-of-concept project. https://www.ledgerinsights.com/fake-news-china-links-cbdc-payments-to-10-asean-6-middle-eastern-countries/ https://www.linkedin.com/feed/update/urn:li:activity:7316086740497195008/

#CBDC#China#CrossBorder#Fintech#Payments#wCBDC#FakeNews#DFC
·proshare.co·
China links CBDC payments to 10 ASEAN, 6 Middle eastern countries
Support for Brazil's Drex WCBDC reportedly waning
Support for Brazil's Drex WCBDC reportedly waning
Valor Economico is reporting that some of the firms involved in the Banco Central do Brasil Drex (BCB) wholesale central bank digital currency (CBDC) project are reducing resource commitments to it. This is reportedly due to frustrations with the BCB's privacy requirements to hide transaction data from all the banks involved except the one that is executing it, while allowing the BCB to see everything and be able to reverse transaction with a court order to that effect. All this must be achieved without harming the digital currency's programmability and composability allowed by its distributed ledger technology (DLT) based platform.
#Brazil#CBDC#Fintech#wCBDC#DFC
·valor.globo.com·
Support for Brazil's Drex WCBDC reportedly waning
Digital Pound accepting applications
Digital Pound accepting applications
The Bank of England (BOE) is now accepting applications to conduct hands-on experimentation to explore the feasibility of different digital pound (DP) use cases in a simulated environment (no real customers or real money payments will be involved). Its goals include assessing the viability of potential business models for payment interface providers (PIPs) and external service Interface providers (ESIPs), and assessing the requirements necessary for a DP to provide a platform for innovation. The Lab is expected to run from August 2025 to July 2026, during which there will be two phases (see below). Applications are open to all private and public sector companies and organisations from technology, payments, banking, retail and other relevant sectors.
#CBDC#Fintech#Sandboxes#UnitedKingdom#DFC
·bankofengland.co.uk·
Digital Pound accepting applications
Digital pound experiment report: Offline payments
Digital pound experiment report: Offline payments
The Bank of England (BOE) published a report on their project aimed to assess whether it is technically feasible to implement an offline payment functionality for a digital pound. The project confirmed the technical feasibility, there are trade-offs, particularly around user experience and preventing double spending and counterfeiting, that make implementing it challenging. It showed that there are several technology choices that could be made for offline payments today, but those are dependent on policy choices, such as risk appetite, product proposition and liability, which impact the options available for mitigating security risks.
#CBDC#Offline#UnitedKingdom#Fintech#DFC
·bankofengland.co.uk·
Digital pound experiment report: Offline payments
Digital pound design note – Intermediary roles and scheme rulebook
Digital pound design note – Intermediary roles and scheme rulebook
The Bank of England (BOE) published an an overview of its initial thinking and work on the potential roles and responsibilities of digital pound (DP) intermediaries and a preliminary conceptual framework for a DP rulebook (or similar document) aimed at facilitating the proper management of the DP were one to be launched. It includes five broad elements; (I) the key participants in the DP ecosystem, (ii) the governance and oversight of the DP payment system, (iii) intermediaries' obligations and minimum standards, (iv) the core functions intermediaries are expected to support, and (v) the governance of intermediaries.
#CBDC#UnitedKingdom#Fintech#DFC
·bankofengland.co.uk·
Digital pound design note – Intermediary roles and scheme rulebook
ECB publishes progress report on digital euro rulebook
ECB publishes progress report on digital euro rulebook
The European Central Bank (ECB) published the fourth update on the work of the digital euro Rulebook Development Group (RDG) in developing a draft digital euro scheme rulebook. The draft rulebook sections have been updated to reflect more than 2,000 comments received as part of the RDG’s interim review in 2024. The report also provides an update on the RDG workstreams since the last update published in September 2024.
#CBDC#ECB#Eurozone#Fintech#DFC
·ecb.europa.eu·
ECB publishes progress report on digital euro rulebook
Offline Payments Based on a Trusted Platform Module
Offline Payments Based on a Trusted Platform Module
The Journal of Cybersecurity published a paper that proposes a secure offline payment model utilizing a Trusted Platform Module (TPM) to enhance the security of digital currency transactions. Additionally, the monotonic counter, the basic component of the TPM, is integrated into this model to prevent double spending in a completely offline environment. The research presents a protocol model that combines these easily implementable technologies to facilitate the efficient processing of transactions entirely offline. However, it is crucial to acknowledge the security implications associated with the TPMs and near-field communications upon which this protocol relies.
#CBDC#Fintech#Offline#Payments#DFC
·mdpi.com·
Offline Payments Based on a Trusted Platform Module
The CBDC veil is lifted: what the digital euro is really about
The CBDC veil is lifted: what the digital euro is really about
Noelle Acheson published an article that discusses the European Central Bank's (ECB) digital euro initiative and its underlying motivations. It highlights how the ECB initially presented the digital euro as a response to consumer demand for a pan-European digital payment platform, but later, the focus shifted to concerns about the dominance of US and Chinese payment platforms in Europe. The article points out that the ECB's push for a digital euro is driven by a fear of losing demand for the euro to dollar-backed stablecoins and a lack of confidence in European banks' ability to compete. It concludes that the ECB's actions reveal a deeper issue: a recognition of the entrenched divisions within the European banking system and a move towards increased public control of commercial marketplaces.
#CBDC#Eurozone#ECB#Fintech#DFC#Stablecoins
·medium.com·
The CBDC veil is lifted: what the digital euro is really about
On the Coexistence of Stablecoins and Central Bank Digital Currencies
On the Coexistence of Stablecoins and Central Bank Digital Currencies
Our exploration into the coexistence of stablecoins and CBDCs reveals a complex and evolving landscape of technological innovation in the payment and financial sectors. We underscore the need for a nuanced understanding of both private and public digital money, highlighting their distinct roles, potential benefits, and inherent risks within the global financial ecosystem. While stablecoins offer innovative solutions and contribute to diversification within the financial and payment sectors, their regulatory challenges and risk factors necessitate careful oversight. Conversely, the emergence of CBDCs represents a significant step by central banks in modernizing monetary systems and potentially enhancing financial inclusion, but these developments raise their own sets of challenges and risks.
#CBDC#Stablecoins#Fintech#DFC
·papers.ssrn.com·
On the Coexistence of Stablecoins and Central Bank Digital Currencies
Ripple Acquires Prime Broker Hidden Road
Ripple Acquires Prime Broker Hidden Road
Ripple is acquiring prime broker Hidden Road for $1.25 billion. With the acquisition, Ripple becomes the first crypto company to own and operate a global, multi-asset prime broker. Hidden Road offers institutions a one-stop-shop of advanced services including clearing, prime brokerage, and financing across foreign exchange (FX), digital assets, derivatives, swaps, and fixed income. The acquisition will make Ripple's RLUSD the first stablecoin to enable efficient cross-margining between the digital asset space and traditional markets, and increase XRP Ledger usage.
#CryptoAssets#Fintech#Ripple#RLUSD#DFC#Stablecoins
·ripple.com·
Ripple Acquires Prime Broker Hidden Road
Euroclear joins HKMA’s Project Ensemble
Euroclear joins HKMA’s Project Ensemble
Euroclear has joined the Hong Kong Monetary Authority’s (HKMA) Project Ensemble, aimed at using wholesale central bank digital currency (CBDC) to settle interbank tokenized exposits and assets. As an Architecture Community member, Euroclear will contribute by developing a set of industry standards to support interoperability in Hong Kong's tokenization ecosystem.
#Fintech#Tokenization#Settlement#Euroclear#CBDC#wCBDC#HongKong#DFC
·euroclear.com·
Euroclear joins HKMA’s Project Ensemble