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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·Dec 7, 2023

Paying with mobile as popular as cash at checkout

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·Dec 7, 2023

Federal Reserve Payments Study (FRPS)

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·Dec 7, 2023

Chinese visitors to Singapore can use digital yuan CBDC

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·Dec 7, 2023

Cash usage grows for first time in a decade

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·Dec 6, 2023

Coinbase rolls out crypto transfers via links sent on WhatsApp, Telegram

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·Dec 6, 2023

State of Stablecoins: Signs of Returning Liquidity

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·Dec 6, 2023

Stablecoin proof of reserves proposals seek more details

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·Dec 4, 2023

Shaping the Future of Cash in an Uncertain World

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·Dec 4, 2023

The Evolution of Consumer Payments in Australia

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·Dec 4, 2023

Canadians report a love-hate relationship with cash

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·Dec 2, 2023

First digital securities transactions commercially settled with real wholesale CBDC

BoE retail digital pound project should proceed with caution, MPs warn

The U.K. Parliamentary Treasury Committee urged the Bank of England and HM Treasury to address data privacy and financial stability concerns before considering the implementation of a retail central bank digital currency (CBDC) or ‘digital pound’. To mitigate financial stability risks, the Committee's report suggested lowering the mooted £20,000 individual holding limit to £10,000. The report also urged the government to alleviate privacy concerns that organizations or the government could use a retail digital pound to monitor or control how users spend their money. These concerns could be mitigated through robust regulation and legislated protections related to the ability of any future government to access people’s data.

#Fintech #CBDC #UnitedKingdom #FinancialStability #Privacy #DFC

·committees.parliament.uk·Dec 2, 2023

BoE retail digital pound project should proceed with caution, MPs warn

Securing privacy in offline payments for retail CBDCs

This study focuses on the development of a CBDC protocol that ensures privacy and security for offline payments. Its foundation makes use of blind signature technology, a method that keeps a message's content secret from the signer and upholds the privacy of transaction Data. The zk-SNARK (Zero-knowledge Succint Non-interactive Argument of Knowledge) protocol, which assures that transactions are both private and verifiable without necessitating interaction between the prover and verifier, provides a complement to this. By leveraging blind signature technology and the zk-SNARK protocol, we explore how to overcome privacy-related challenges in retail CBDC while ensuring resilience against quantum attacks.

#Fintech #CBDC #Privacy #BlindSignatures #DFC

·fime.com·Dec 1, 2023

Securing privacy in offline payments for retail CBDCs

Interoperability aspects of CBDC across ecosystems and borders

The Journal of Payments Strategy & Systems published a paper by Gieseke+Devrient's Lars Hupel that describes the state of the art for interoperability between different digital ecosystems, including bridges, exchanges and wrappers. The precise design of such solutions is highly context-dependent and requires careful analysis of use cases, stakeholders, and operational concerns. With regards to central bank digital currency (CBDC) the challenges relate to the multiple connection points, and the absence of a single technological means to address all of them uniformly. The paper puts forward some suggestions around different CBDC design options and potential use cases, and discusses some case studies.

#Fintech #CBDC #Interoperability #DFC

·papers.ssrn.com·Dec 1, 2023

Interoperability aspects of CBDC across ecosystems and borders

CBDC information security and operational risks to central banks

The Bank for International Settlements (BIS) published a report that analyses the operating, technology, third-party and business continuity risks for the central banks that issue central bank digital currency (CBDC). It proposes an integrated risk-management framework that can be applied to the entire life cycle of a CBDC. For CBDCs to be a reliable means of payments, central banks need to address, among others, the risks of interruptions or disruptions and ensure integrity and confidentiality. Key risk are the potential gaps in central banks' internal capabilities and skills. While many of the CBDC-related activities could in principle be outsourced, doing so requires adequate capacity to select and supervise vendors.

#Fintech #CBDC #CyberSecurity #BIS #DFC

·bis.org·Nov 30, 2023

CBDC information security and operational risks to central banks

Retail CBDC implications for banking and financial stability

The U.S. Federal Reserve (Fed) published a review of the literature that examines the risks to the banking sector associated with retail CBDC introduction. These include the possibility of bank disintermediation and associated contraction in bank credit, as well as potential adverse effects on financial stability. The recycling of the new CBDC liability through asset purchases or lending by the central bank plays an important role in determining the economic consequences of the introduction of a CBDC. Ultimately, the effects of a CBDC depend critically on its design features, of which remuneration is the one discussed most often in the literature.

#Fintech #CBDC #DFC

·federalreserve.gov·Nov 29, 2023

Retail CBDC implications for banking and financial stability

Rwanda's CBDC development process still underway

The National Bank of Rwanda (NBR) reportedly has determined that a retail CBDC is needed in the country. However, the central bank is still in the early stages of its CBDC research, and it will take about two years before it would ready for launch.

#Fintech #CBDC #Rwanda #DFC

·allafrica.com·Nov 29, 2023

Rwanda's CBDC development process still underway

Central Bank of Solomon Islands to start CBDC proof of concept

The Central Bank of Solomon Islands (CBSI) started a retail CBDC ("Bokolo Cash") proof-of-concept (PoC) on November 1, 2023. The CBSI has been testing the Soramitsu-provided system for domestic and foreign payments, including simulated international remittances. Within the PoC, users will be able to seamlessly scan a QR code with their Bokolo Cash wallet to send instant cash payments to selected merchants or make peer-to-peer transfers.

#Fintech #CBDC #SolomonIslands #Soramitsu #DFC

·finextra.com·Nov 29, 2023

Central Bank of Solomon Islands to start CBDC proof of concept

Bank of Canada publishes report on digital dollar consultations

The Bank of Canada published a report on the feedback it has received to date about a potential digital Canadian dollar. It confirmed that Canadians place a high value on central bank-backed cash and want to maintain access to bank notes. Also, Canadians value their right to privacy and many expressed concerns that a digital dollar could compromise that right. In addition, they don't want a digital dollar that will add to financial stability risks. The Bank reconfirmed that likelihood of a digital loonie being needed is still uncertain, and the ultimate decision whether to go ahead with one depends on the Parliament.

#Fintech #CBDC #Canada #DFC

·bankofcanada.ca·Nov 29, 2023

Bank of Canada publishes report on digital dollar consultations

Whose liability is it anyways? CBDC Edition

Introducing a CBDC risks destabilizing the banking system and worsening panics. The Federal Reserve tried to lessen that risk by “including” banks in the process by proposing an intermediated CBDC. Yet, with an intermediated CBDC, banks would have to cover regulatory and overhead costs to maintain CBDC accounts even though they would have no loan revenue from those funds since the CBDC is still a liability of the central bank. Moreover, shrinking the supply of deposits would likely lead to costlier credit. That means loans will be more expensive for everyone.

#Fintech #CBDC #FinancialStability #Cato #DFC

·cato.org·Nov 28, 2023

Whose liability is it anyways? CBDC Edition

Four foreign banks join China's CBDC pilot trials

Four foreign banks have reportedly integrated China's digital yuan (e-CNY) into their payment platforms (Standard Chartered, Hong Kong-based HSBC and Hang Seng Bank, and Taiwan's Fubon Bank). All four will allow their clients to transfer and withdraw e-CNY. For example, Hang Seng Bank and HSBC allow personal banking customers to bind debit cards within the official e-CNY app and redeem digital renminbi. They can also top up the digital renminbi wallet through the Hang Seng China Mobile Banking App.

#Fintech #CBDC #China #DFC

·cointelegraph.com·Nov 28, 2023

Four foreign banks join China's CBDC pilot trials

Thai government to distribute "time-stamped" digital money

The Thai Prime Minister reportedly announced a 10,000 baht handout of "time stamped" blockchain-based digital money to the 50 million Thais earning less than 70,000 baht per month. It is time stamped in that recipients must begin spending the money within six months on food, nonalcoholic beverages and consumer products bought in stores, and only within their electoral districts.

#Fintech #CBDC #GovCoins #SmartContracts #Programmability #Gesell #Thailand #DFC

·asia.nikkei.com·Nov 28, 2023

Thai government to distribute "time-stamped" digital money

India liaises with US, Hong Kong, Swift for cross border CBDC

The Reserve Bank of India (RBI) is reportedly in discussions with the U.S. Federal Reserve, the Hong Kong Monetary Authority (HKMA) and Swift regarding the potential to use a central bank digital currency (CBDC) for cross border payments. RBI Governor Shaktikanta Das has said the central bank is "even more convinced that CBDC can be the most effective and efficient mode for cross border payments."

#Fintech #CBDC #CrossBorder #India #HongKong #SWIFT #UnitedStates #DFC

·ledgerinsights.com·Nov 28, 2023

India liaises with US, Hong Kong, Swift for cross border CBDC

Freedom House Report

"Freedom House rates people’s access to political rights and civil liberties in 210 countries and territories through its annual Freedom in the World report. Individual freedoms—ranging from the right to vote to freedom of expression and equality before the law—can be affected by state or nonstate actors."

#Fintech #CBDC #Privacy #Democracy #Freedom #DFC

·freedomhouse.org·Nov 27, 2023

Freedom House Report

A digital euro: gauging the financial stability implications

"The envisaged design of a digital euro would address financial stability concerns by applying adequate holding limits. The cap on individual holdings would set an upper bound for the amount of digital euro in circulation and prevent the materialisation of high deposit outflows. Recent studies show that setting a digital euro holding limit of €3,000 per person would be effective in containing the impact on banks’ liquidity risks and funding structures. With such a limit in place, outflows of household overnight deposits from the euro area banking sector could only occur (up to a maximum of 15%) in the following highly unlikely circumstances: (i) if all euro area citizens adopted the digital euro simultaneously, and (ii) they all shifted bank deposits to the digital euro at the upper bound of the holding limit instantaneously and then held these on a continuous basis. However, the actual level of the individual holding limit would be calibrated closer to the possible introduction of a digital euro to reflect the economic conditions prevailing at that time."

#Fintech #CBDC #Eurozone #ECB #DFC

·ecb.europa.eu·Nov 27, 2023

A digital euro: gauging the financial stability implications

Canton of Zurich issues digital bond settled with wholesale CBDC

The Canton of Zurich issued a CHF 100 million digital bond via the SIX Digital Exchange (SDX) that will settle on December 1, 2023 using a wholesale central bank digital currency (CBDC) issued by the Swiss National Bank (SNB), marking the launch of the SNB's Project Helvetia pilot. The pilot will run to June 2024, and according to the SNB "does not constitute a commitment on its part to introduce wholesale CBDC on a permanent basis. Rather, the SNB aims to test the various models for settling tokenized assets". https://www.snb.ch/en/publications/communication/press-releases/2023/pre_20231102

#Fintech #CBDC #wCBDC #Switzerland #Tokenization #Settlement #Blockchain #DFC

·ledgerinsights.com·Nov 26, 2023

Canton of Zurich issues digital bond settled with wholesale CBDC

Currency Network | CBDC Ecosystem Solution

"We have built the most advanced CBDC ecosystem solution based on the concept of Chaum and Moser's eCash 2.0 that holds the promise of cash-like privacy. With our solution, Central Banks will be able to launch a sovereign digital currency that compliments hard-cash and supplements Commercial Bank money, helping them to maintain monetary and fiscal stability with greater control over the economy."

#Fintech #CBDC #Vendor #DFC

·currencynet.io·Nov 25, 2023

Currency Network | CBDC Ecosystem Solution

Kazakhstan central bank pilots digital tenge smart contracts

Binur Zhalenov, CEO of the National Bank of Kazakhstan National Payments Corporation, has described a pilot that uses digital tenge smart contracts to optimize government subsidies, in this case involving school canteen subsidies. Each school student in Almaty has an "ONAY!" transportation card. When a student uses this card in the school canteen, a smart contract is triggered that transfers digital tenge from the school's account directly to the canteen operator's account, but only when the student actually receives the service. This significantly cuts down on unnecessary reporting, canteens receive funds instantly after providing services, and ensures clear visibility of government fund usage.

#Fintech #CBDC #Kazakhstan #SmartContracts #DFC

·linkedin.com·Nov 24, 2023

Kazakhstan central bank pilots digital tenge smart contracts

China Debuts Solar Power Digital Yuan Smart Contracts

State Grid Suzhou Power Supply Company reportedly completed the first digital yuan smart contract transaction in the solar power industry. The deal was struck the CBDC with the materials and textiles firm Suzhou Shicheng Material Technology that had struck a smart contract loan-type financing deal with a local bank branch. After Suzhou Shicheng Material Technology used electricity over an agreed period, State Grid Suzhou Power Supply issued a bill, causing the contract to close, and Suzhou Shicheng Material Technology's digital yuan wallet was automatically debited after the issuance of the bill.

#Fintech #CBDC #China #SmartContracts #DFC

·cryptonews.com·Nov 24, 2023

China Debuts Solar Power Digital Yuan Smart Contracts

Korea shares plans for tokenized deposit, wholesale CBDC trials

The Bank of Korea (BOK) will launch two wholesale central bank digital currency (CBDC) tests. The first will be a pilot in which banks will issue tokenized deposits as programmable vouchers, and settle them between each other using wholesale CBDC. This tokenized deposit pilot will involve up to 100,000 people starting in September or October 2024. The second test will be a proof-of-concept that will involve banks using wholesale CBDC to settle carbon credit transactions on the Korea Exchange. https://www.koreatimes.co.kr/www/nation/2023/11/602_363810.html https://www.bok.or.kr/eng/bbs/B0000359/view.do?nttId=10080772&menuNo=400415

#Fintech #CBDC #wCBDC #Korea #Tokenization #DepositTokens #DFC

·ledgerinsights.com·Nov 23, 2023

Korea shares plans for tokenized deposit, wholesale CBDC trials