DFC

5260 bookmarks
Newest
JCB, IDEMIA extend offline digital currency pilot
JCB, IDEMIA extend offline digital currency pilot
Japanese card payments network JCB, identity firm IDEMIA and Malaysia’s Soft Space are exploring offline digital currency functionality. A first phase of the project demonstrated connectivity between existing card and payment infrastructures, and a potential [central bank?] digital currency, showing that current point of sale solutions don’t need adaptation. The new phase will test using mobile wallets to transfer digital currency between them without an internet connection using near field communications (NFC). Another scenario will test the offline use of stored value payment cards that transfer digital currency via mobile phones using NFC to transfer funds. https://www.idemia.com/press-release/jcb-idemia-and-soft-space-launch-jcbdc-phase-2-pilot-trial-cbdc-offline-p2p-payments-2023-12-13
#Fintech#CBDC#Offline#IDEMIA#DFC
·ledgerinsights.com·
JCB, IDEMIA extend offline digital currency pilot
Report of the Japan Ministry of Finance Expert Panel on CBDC
Report of the Japan Ministry of Finance Expert Panel on CBDC
Japan's Ministry of Finance (MOF) has published an English translation of the Report of the Expert Panel on CBDC. The Panel asks MOF to coordinate with relevant ministries and Bank of Japan (BOJ) on design, and to clearly explain the rationale behind CBDC to the public. The Panel also recommends that the government and BOJ maintain their commitment to supplying cash as long as there is demand from the public, and it found no strong reason for offline functions to be introduced at the outset considering risks of double spending and counterfeiting. Also, remuneration is not recommended for the time being as it could undermine the convertibility with cash at par.
#Fintech#CBDC#Japan#DFC
·mof.go.jp·
Report of the Japan Ministry of Finance Expert Panel on CBDC
S&P Global Ratings Launches Stablecoin Stability Assessment
S&P Global Ratings Launches Stablecoin Stability Assessment
S&P Global unveiled ratings for eight stablecoins. On a grading scale of one (very strong) to five (very weak) USDC, Pax Dollar (USDP) and Gemini Dollar (GUSD) scored all scored two strong), while Tether's USDT scored a four (constrained). USDT was penalized for its lack of transparency and for holding some higher risk assets. The ratings are based on an assessment of asset quality risks, including credit, market value, and custody risks, the degree of any risk mitigants like overcollateralization requirements and liquidation mechanisms, governance, legal and regulatory framework, redeemability and liquidity, technology and third-party dependencies, and track record.
#Fintech#CryptoAssets#Stablecoins#Ratings#USDC#USDT#GUSD#USDP#DFC
·press.spglobal.com·
S&P Global Ratings Launches Stablecoin Stability Assessment
SC Ventures and G+D Complete PoC on Different Types of CBDC Systems
SC Ventures and G+D Complete PoC on Different Types of CBDC Systems
Standard Chartered and Giesecke+Devrient (G+D) completed a proof-of-concept (PoC) that tested the feasibility of conducting real-time multilateral cross-currency transfers on the Universal Digital Payments Network (UDPN), involving both distributed ledger technology (DLT) and non-DLT-based technologies. The PoC explored the indirect model, where commercial banks manage CBDC wallets and settlements directly on the UDPN, while the central bank handles wholesale settlement between commercial banks and keeps all transaction records. It also tested the direct model where central banks manage wallets and settlements within a centralized CBDC system
#Fintech#CBDC#G+D#CrossBorder#DFC
·fintechnews.sg·
SC Ventures and G+D Complete PoC on Different Types of CBDC Systems
High-level technical requirements for a functional CBDC architecture
High-level technical requirements for a functional CBDC architecture
The Bank for International Settlements (BIS) published a report by the Consultative Council for the Americas (CCA) Consultative Group on Innovation and the Digital Economy (CGIDE) that outlines high-level technical requirements for a retail central bank digital currency (CBDC) architecture that will shape a future CGIDE proposal for a CBDC proof of concept. The technical requirements considered include interoperability, scalability, user-centric design, security and data privacy. The proposed CBDC architecture based on these technical requirements aims to serve as a general reference for central banks conducting research on CBDC or developing their own initiatives.
#Fintech#CBDC#BIS#DFC
·bis.org·
High-level technical requirements for a functional CBDC architecture
A Farewell to Cash by Willem H. Buiter
A Farewell to Cash by Willem H. Buiter
"While proponents of central bank digital currencies argue that the technology would boost financial inclusion and efficiency, critics warn that it poses financial, political, and environmental risks. But these concerns are overblown, especially when also weighed against CBDCs’ potential to strengthen monetary policy."
#Fintech#CBDC#Cash#DFC
·project-syndicate.org·
A Farewell to Cash by Willem H. Buiter
Reserve-Backed Tokens, and Is It Time for Narrower Banks?
Reserve-Backed Tokens, and Is It Time for Narrower Banks?
Bank for International Settlements (BIS) staffer Tirupam Goel posted a paper discusses the pros and cons of reserve-backed tokens (RBTs) - stablecoins issued by well-regulated private entities that are solely and fully backed by central bank reserves. (The IMF calls them "synthetic CBDC") They are safer than, and can crowd out, current stablecoins, they can adopt a more flexible design than retail CBDCs and thus foster greater competition and innovation, and compared to bank deposits, RBTs are immune to runs and unencumbered by legacy features. However, they could disintermediate commercial banks during normal times and exacerbate runs during stress periods.
#Fintech#CryptoAssets#Stablecoins#CBDC#NarrowBanking#BIS#DFC
·papers.ssrn.com·
Reserve-Backed Tokens, and Is It Time for Narrower Banks?
How sustainable is payment by cash?
How sustainable is payment by cash?
The European Central Bank (ECB) published an analysis of the environmental impact of euro banknotes as a means of payment based on the European Commission’s Product Environmental Footprint (PEF) methodology. It accounted for all the activities of a full cash cycle of banknotes, from raw material acquisition and manufacturing to the disposal of euro banknotes. It found that the average annual value of cash payments per euro area citizen in 2019 was 101 micropoints (µPt), equivalent to an driving a standard car for 8 km. https://www.ecb.europa.eu/pub/pubbydate/2023/html/ecb.pefreport202312~81e945e7aa.en.html
#Fintech#CBDC#Cash#DFC
·finextra.com·
How sustainable is payment by cash?
Digital ruble proof-of-concept project will continue until end of 2024
Digital ruble proof-of-concept project will continue until end of 2024
The digital ruble launch will begin no earlier than 2025, after the completion of the proof-of-concept (POC) that started on August 15, 2023. The first group of participants consists of 600 Bank of Russia employees and 30 businesses in eleven cities. In 2024 the number of participants will expand, but will still remain limited. The POC will continue at least until the end of 2024 and, if necessary, will be extended. The Bank of Russia also noted that, although there are no transaction fees to users, merchants pay a 0.3% commission fee for accepting payments in digital rubles.
#Fintech#CBDC#Russia#DFC
·tass.com·
Digital ruble proof-of-concept project will continue until end of 2024
Cash Is Alive: How Economists Explain Holding and Use of Cash
Cash Is Alive: How Economists Explain Holding and Use of Cash
"Research on holding and use of cash involves many aspects, such as reasons for holding and hoarding cash, transactional demand for cash, cash management, type of spending paid with cash, type of consumer who pays cash, merchant acceptance, how consumers get cash, currency denominations, legal aspects, cash substitutes, and cost of cash. The purpose of this article is to introduce the reader to some of the research economists do on consumer holding and use of cash." https://www.aeaweb.org/content/file?id=15998
#Fintech#Cash#CBDC#DFC
·aeaweb.org·
Cash Is Alive: How Economists Explain Holding and Use of Cash
Tether Introduces New Policy to Strengthen Ecosystem Security
Tether Introduces New Policy to Strengthen Ecosystem Security
Stablecoin issuer Tether initiated a new voluntary wallet-freezing policy designed to combat activity connected with Sanctioned persons on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List. This adds to the Sanctions controls Tether already enforces for wallets on its platform. Tether has taken additional precautionary measures, including freezing wallets previously added to the SDN List. "The primary objective behind this approach is to proactively prevent any potential misuse of Tether tokens and enhance security measures."
#Fintech#CryptoAssets#Stablecoins#Tether#FinancialIntegrity#DFC
·tether.to·
Tether Introduces New Policy to Strengthen Ecosystem Security
Four European takes on open banking
Four European takes on open banking
"In our overview of open banking in Europe, we look at what open banking really means in Europe relative to the rest of the world and caveat that its evolution into open finance is more than just about expanded scope. We then justify our choice to focus on the Netherlands, France, Spain and Switzerland instead of on Europe’s top-four open banking performers of Sweden, Denmark, Norway and the UK."
#Fintech#Payments#Cash#OpenBanking#Switzerland#Netherlands#France#Spain#MasterCard#DFC
·mastercardservices.com·
Four European takes on open banking
Stablecoin Standard
Stablecoin Standard
"Stablecoin Standard is the industry body for stablecoin issuers globally. Our objective is to give the industry a shared voice, and engage with external stakeholders to promote the acceptance of stablecoins through education, resources, shared initiatives and the StableCheck™️ scheme. "
#Fintech#CryptoAssets#Stablecoins#DFC
·stablecoinstandard.com·
Stablecoin Standard
Taiwan continues work on wholesale, retail CBDC targeting tokenization
Taiwan continues work on wholesale, retail CBDC targeting tokenization
The Central Bank of the Republic of China (Taiwan) has completed a technical feasibility study for a wholesale central bank digital currency (CBDC) and is planning retail CBDC pilots to follow up on the proof-of-concept completed in 2022. Supporting tokenization is a main motivation for the wholesale CBDC work, including providing an anchor for tokenized deposits, stablecoins and a unified ledger, plus an additional payment option in a tokenized world. The retail CBDC work will include researching an offline solution. https://www.cbc.gov.tw/tw/cp-302-164924-0423d-1.html
#Fintech#CBDC#Taiwan#wCBDC#rCBDC#Tokenization#DFC
·ledgerinsights.com·
Taiwan continues work on wholesale, retail CBDC targeting tokenization
Cash is the most used payment method in Europe
Cash is the most used payment method in Europe
According to a BearingPoint survey across seven European countries, cash is the most used payment method overall with contactless debit cards second. Cash use is significantly higher in Austria (79%) and Germany (71%), but respondents from Switzerland (63%), Ireland (61%), the Netherlands (57%), and France (55%) also show a relatively high level of cash use. Finland has a significantly lower frequency of cash usage at 43%.
#Fintech#Cash#CBDC#Europe#ContactLessPayment#DFC
·bearingpoint.com·
Cash is the most used payment method in Europe
UK FCA sets out new rules to maintain access to cash
UK FCA sets out new rules to maintain access to cash
The U.K. Financial Conduct Authority (FCA) proposed new rules to maintain reasonable access to cash for personal and business customers across the United Kingdom. Under the proposals, designated banks and building societies will need to assess gaps in access to cash. These assessments need to take into account local factors such as demographics and transport. Where firms identify gaps, they will need to act to address these needs, like delivering reasonable additional cash services to fill gaps, and ensuring they do not close cash facilities, including bank branches, until any additional cash services identified are available.
#Fintech#Cash#CBDC#UnitedKingdom#DFC
·fca.org.uk·
UK FCA sets out new rules to maintain access to cash
Basel Committee to consult on bank treatment of crypto
Basel Committee to consult on bank treatment of crypto
The Basel Committee on Banking Supervision reviewed various elements of the prudential standard for bank exposures to crypto-assets published in December 2022. It agreed to consult on potential targeted revisions related to the criteria for stablecoins to receive a preferential "Group 1b" regulatory treatment. The Committee will also consult on various technical amendments to help promote a consistent understanding of the standard. The Committee concluded that crypto-assets that use permissionless blockchains create risks that cannot be sufficiently mitigated at present and therefore agreed to retain the existing "Group 2" treatment for them (1,250% risk weight). A consultation paper will be published before end-2023. https://www.bis.org/press/p231207.htm
#Fintech#CryptoAssets#Stablecoins#Regulation#Basel#BIS#DFC
·ledgerinsights.com·
Basel Committee to consult on bank treatment of crypto
UTXO in Digital Currencies: Account-based or Token-based? Or Both?
UTXO in Digital Currencies: Account-based or Token-based? Or Both?
"The UTXO design of Bitcoin exhibits partially characteristics of a token-based system and partially characteristics of an account-based system. A discussion on the difficulty to implement the economic notion of tokens in the digital domain, along with an exposition of the design of UTXO, is given in order to discuss why UTXO-based systems should be viewed as account-based according to the classical economic notion. Besides, a detailed comparison between UTXO-based systems and account-based systems is presented. Using the data structure of the system state representation as the defining feature to distinguish digital token-based and account-based systems is therefore suggested. This extended definition of token-based systems covers both physical and digital tokens while neatly distinguishing token-based and account-based systems."
#Fintech#CryptoAssets#CBDC#Ontology#Taxonomy#DFC
·arxiv.org·
UTXO in Digital Currencies: Account-based or Token-based? Or Both?
Piloting CBDC for Social Assistance Distribution
Piloting CBDC for Social Assistance Distribution
"The implementation of Central Bank Digital Currency (CBDC) in social assistance distribution offers significant advantages, particularly in the context of developing countries. CBDC enables more transparent and traceable transactions, which are crucial steps in reducing corruption and fund misappropriation. Traditional systems often suffer from high transaction costs and slow settlement processes, but with CBDC, both of these issues can be minimized. CBDC also eliminates intermediaries in fund distribution, which is highly relevant in developing countries where distribution chains are often long and complex, increasing the risk of fund loss. "
#Fintech#CBDC#Corruption#G2P#DFC
·moderndiplomacy.eu·
Piloting CBDC for Social Assistance Distribution
Paying with mobile as popular as cash at checkout
Paying with mobile as popular as cash at checkout
"In 2022, Dutch people used their mobile phone or wearable device for contactless payment at points of sale as often as they paid in cash. The share of these new means of payment rose to 21%, while the use of banknotes and coins stabilised at 20% of total payments. Including the contactless variants, debit payments thus stabilised at 80% of all purchases. Young people, the over-65s and people who find it difficult to make ends meet still tend to prefer cash. This has been revealed by a joint study conducted by the Dutch Payments Association (Betaalvereniging Nederland) and De Nederlandsche Bank (DNB)."
#Fintech#Cash#CBDC#Netherlands#DFC
·dnb.nl·
Paying with mobile as popular as cash at checkout
Federal Reserve Payments Study (FRPS)
Federal Reserve Payments Study (FRPS)
"The 2022 Federal Reserve Payments Study (FRPS) collected data for the 2021 calendar year. This initial release includes top-line figures for the core noncash payment methods used in the United States by consumers, businesses, and governments, including payments by general-purpose and private-label cards, automated clearinghouse (ACH) transfers, and checks. This release also covers automated teller machine (ATM) cash withdrawals. Wire transfers, used primarily for large financial transactions, are excluded from these data."
#Fintech#Cash#CBDC#UnitedStates#DFC
·federalreserve.gov·
Federal Reserve Payments Study (FRPS)
Chinese visitors to Singapore can use digital yuan CBDC
Chinese visitors to Singapore can use digital yuan CBDC
The Monetary Authority of Singapore (MAS) and People’s Bank of China (PBOC) have agreed to allow tourists from either country to use the pilot digital yuan central bank digital currency (CBDC). Visitors to China have likely been able to use the digital yuan for some time, so the innovation here is that Chinese visitors will be able to use it in Singapore. This follows increasing integration between the digital yuan and Hong Kong, enabling visitors in both directions to use the CBDC, but given China’s control over Hong Kong, that’s rather different. https://www.mas.gov.sg/news/media-releases/2023/singapore-and-china-enhance-digital-finance-and-capital-markets-cooperation
#Fintech#CBDC#CrossBorder#China#Singapore#DFC
·ledgerinsights.com·
Chinese visitors to Singapore can use digital yuan CBDC
Cash usage grows for first time in a decade
Cash usage grows for first time in a decade
Cash usage in the United Kingdom has grown for the first time in a decade, according to the British Retail Consortium (BRC) annual Payments Survey, with coins and banknotes accounting for 19% of transactions in 2022, , up from 15% in 2021. It's the first time that the retailer lobby group has recorded any growth in cash uptake since it first began monitoring payments in 2013. Card payments were used for 76% of transactions (83% in 2021), with debit cards accounting for four-fifths of these transactions. https://brc.org.uk/news/corporate-affairs/cost-of-living-drives-return-to-cash/
#Fintech#Cash#CBDC#UnitedKingdom#DFC
·finextra.com·
Cash usage grows for first time in a decade
Coinbase rolls out crypto transfers via links sent on WhatsApp, Telegram
Coinbase rolls out crypto transfers via links sent on WhatsApp, Telegram
Coinbase Wallet now allows for the transfer of crypto through a link that can be sent through popular social media sites and messaging apps apps like iMessage, Telegram, WhatsApp, Facebook, Instagram and TikTok. And there are no payment fee when sending USD Coin (USDC). Clicking the link will take the recipient to their device’s app store to download Coinbase Wallet — if not already downloaded — where they can create a wallet in one click. If the funds aren’t claimed within two weeks, they will be returned to the sender. There appear to be no transaction-size limits. https://www.coinbase.com/blog/with-coinbase-wallet-sending-money-is-now-as-easy-as-sending-a-text
#CryptoAssets#Fintech#Coinbase#Stablecoins#USDC#CrossBorder#DFC
·cointelegraph.com·
Coinbase rolls out crypto transfers via links sent on WhatsApp, Telegram
State of Stablecoins: Signs of Returning Liquidity
State of Stablecoins: Signs of Returning Liquidity
Coin Metrics published an update on stablecoin market developments, concluding that the expanding supply of stablecoins serves as a clear indicator of rising activity and usage within the digital asset ecosystem, with Tether on Tron leading the charge. Despite challenges in the U.S. regulatory environment and a complex political landscape, stablecoin liquidity has shown impressive resilience. The update attributes this to the wide utility of stablecoins, through avenues such as decentralized finance (DeFi) pools to exchanges and in diverse yield generating products. These trends also evidence the central role stablecoins play in the crypto-economy.
#Fintech#CryptoAssets#Stablecoins#DFC
·coinmetrics.substack.com·
State of Stablecoins: Signs of Returning Liquidity
Stablecoin proof of reserves proposals seek more details
Stablecoin proof of reserves proposals seek more details
The American Institute of Certified Public Accountants (AICPA) published proposed criteria for stablecoin issuers when they disclose their proof of reserves. It asks for more details than any stablecoin issuers currently provide in their disclosures. For example, the call for issuers to disclose the banks where they hold cash, the amount of redeemable stablecoins on each blockchain, and details about tokens that are not redeemable, either temporarily or permanently (e.g., pre-minted or blacklisted tokens). Plus proof of reserves will need to disclose the conditions required to redeem the stablecoin directly. https://www.aicpa-cima.com/news/article/aicpa-debuts-proposed-reporting-framework-for-issuers-of-stablecoins
#Fintech#CryptoAssets#Stablecoins#Accounting#Reporting#UnitedStates#DFC
·ledgerinsights.com·
Stablecoin proof of reserves proposals seek more details
Shaping the Future of Cash in an Uncertain World
Shaping the Future of Cash in an Uncertain World
"The Future of Cash conference in Istanbul saw some big conversations about cash today and its future. The mood was more upbeat this year as transactional demand for cash has primarily rebounded from the lows of the pandemic, and the access to cash agenda has gathered pace in countries facing the reality of less cash."
#Fintech#Cash#DFC
·cashessentials.org·
Shaping the Future of Cash in an Uncertain World
The Evolution of Consumer Payments in Australia
The Evolution of Consumer Payments in Australia
The Reserve Bank of Australia's (RBA's) Consumer Payment Survey showed that Australians making in-person payments with cash has dropped from 32% of total payments in 2019 to 16% in 2022. Just over half did not use cash at all in 2022, up from about one-third in 2019. However, around 5% use cash for all in-person payments, privacy and security or budgeting. 29% of Australians hold no cash on their person versus 22% in 2019. The share of people holding cash in other places was unchanged from 2019 at around 40%, consistent with precautionary or store-of-wealth demand. This is seen most in the growth of high denomination banknotes in circulation.
#Fintech#Cash#Australia#DFC
·rba.gov.au·
The Evolution of Consumer Payments in Australia
Canadians report a love-hate relationship with cash
Canadians report a love-hate relationship with cash
According to Payments Canada, while the value of cash used in purchases has declined 41% from 2017-2022, only 13% of Canadians report having gone completely cashless. Of the 87% that still use cash, 31% use cash for day-to-day purchases, and 37% hold on to it for emergencies. While cash is used less often for point-of-sale purchases, the prospect of cashless stores is a concern for 52% of Canadians. And they are divided on the prospects of a central bank digital currency (CBDC), 36% finding it appealing and 30% not. One in four say they would not use a digital Canadian dollar, with 63% who would still use cash if a digital Canadian dollar was introduced.
#Fintech#Cash#CBDC#Canada#DFC
·payments.ca·
Canadians report a love-hate relationship with cash
First digital securities transactions commercially settled with real wholesale CBDC
First digital securities transactions commercially settled with real wholesale CBDC
December 1, 2023 saw the world's first commercial settlements of digital securities transactions with real wholesale CBDC on a regulated distributed ledger technology (DLT) based financial market infrastructure (SDX). One was a CHF 105 million franc digital four-year bond issued by the Canton of Basel-Stadt, and the second was a CHF 100 million digital 11-year bond issued by the Canton of Zurich. The wholesale CBDC was issued by the Swiss National Bank as part of Helvetia III. In addition to the settlement on the SDX platform, part of the settlement took place on SIX SIS, the national central securities depository (CSD) of the Swiss financial market and an International Central Securities Depository (ICSD), which runs a node on SDX.
#Fintech#CBDC#wCBDC#Switzerland#Settlement#Tokenization#DFC
·linkedin.com·
First digital securities transactions commercially settled with real wholesale CBDC