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BOK, Samsung join hands for offline payment using CBDC
BOK, Samsung join hands for offline payment using CBDC
[Old news - May 2023] The Bank of Korea (BOK) and Samsung will reportedly work together to develop central bank digital currency (CBDC) technology that enables transactions to be made without internet access. In the BOK's proof-of-concept CBDC testing last year, Samsung worked out an offline technology which allows transactions and payments between mobile devices through near field communication (NFC) without online connection, using an embedded secure element security chip. They will continue this work on Samsung's Galaxy smartphones and watches.
#Fintech#CBDC#Offline#Korea#DFC
·koreaherald.com·
BOK, Samsung join hands for offline payment using CBDC
Central banks will face unfamiliar challenges to achieve CBDC inclusivity, study says
Central banks will face unfamiliar challenges to achieve CBDC inclusivity, study says
The Bank of Canada published a paper that explores quantitative and qualitative information about Canadians who face barriers to making digital payments, and implications for a potential central bank digital currency (CBDC). It identified three types of inclusion necessary for a universally accessible payment method: financial inclusion, digital inclusion and practical accessibility. The challenge is in the delivery of services rather than product design, and private financial institutions may not be incentivized to address the needs of those who are underserved. However, overcoming those challenges will require central banks to face problems that would otherwise be considered far from their scope of interest. https://www.bankofcanada.ca/2023/10/staff-discussion-paper-2023-22/ https://www.linkedin.com/pulse/welcome-weeks-edition-cbdc-chronicles-conrad-kraft-yafoe/
#Fintech#CBDC#FinancialInclusion#Canada#DFC
·cointelegraph.com·
Central banks will face unfamiliar challenges to achieve CBDC inclusivity, study says
Bank of Korea to start CBDC infrastructure pilot
Bank of Korea to start CBDC infrastructure pilot
The Bank of Korea (BOK) is launching a CBDC pilot that will include private banks and public institutions, while the Bank for International Settlements (BIS) providing technical support. It will assess the viability of a future monetary system grounded on wholesale CBDCs, with key motivations to include testing wholesale CBDC as a settlement asset for commercial bank tokenized deposits, and exploring the BIS Unified Ledger concept. Banks will issue payment instruments in the form of tokenized deposits - that will be accessible to the general public - within the “CBDC network” established by the BOK, using distributed ledger technology (DLT), and managed by the BOK, Financial Services Commission, and the Financial Supervisory Service. https://www.bok.or.kr/eng/bbs/E0000634/view.do?menuNo=400069&nttId=10079839&pageIndex=1&
#Fintech#CBDC#Korea#DFC
·cointelegraph.com·
Bank of Korea to start CBDC infrastructure pilot
Bank of Ghana announces the launch of an eCedi hackathon
Bank of Ghana announces the launch of an eCedi hackathon
Bank of Ghana (BoG) in collaboration with EMTECH has launched an eCedi hackathon, to provide opportunities for Fintechs, developers and innovators to design innovative solutions that explore various use cases of a central bank digital currency (CBDC). The event is set to run for 12 weeks, during which innovators will brainstorm to come up with solutions to address financial inclusion challenges in Ghana. The proposed innovations are expected to leverage eCedi tokens and APIs to prototype solutions or develop tools that address various use cases.
#Fintech#CBDC#Ghana#DFC
·bog.gov.gh·
Bank of Ghana announces the launch of an eCedi hackathon
Pilot project on digital ruble to be expanded in 2024
Pilot project on digital ruble to be expanded in 2024
The digital ruble pilot is going as planned and the Russian central bank is preparing to expand it in 2024 adding new participants and widening its functions. The pilot, which started in August, is testing operations, the opening of wallets, transfers between citizens, and QR codes payments. 13 banks are actively participating in the pilot and preparations are being made to expand the project next year by adding new participants and new clients, including transfers between legal entities.
#Fintech#CBDC#Russia#DFC
·tass.com·
Pilot project on digital ruble to be expanded in 2024
UAE issues stablecoin and new digital asset regulations and legislation
UAE issues stablecoin and new digital asset regulations and legislation
Dubai’s Virtual Asset Regulatory Authority (VARA) and Dubai International Financial Center (DIFC) published updates to their crypto regulations. VARA updated its virtual asset rulebook and added new fiat-referenced virtual asset (FRVA) (or fiat-referenced stablecoin) regulations. VARAs exclude stablecoins pegged to the United Arab Emirates (UAE) dirham, which will remain under Central bank of the UAE regulation, and crypto-assets that reference central bank equity claims, central bank digital currencies (CBDCs), or tokenized bank deposits for interbank settlement purposes. [Read more at VARA] DIFC proposed a new securities digital asset law in a new consultation paper.
#Fintech#CryptoAssets#Regulation#Dubai#UAE#Stablecoins#DFC
·cryptopolitan.com·
UAE issues stablecoin and new digital asset regulations and legislation
Ripple announces the CBDC Innovate Phase I winners
Ripple announces the CBDC Innovate Phase I winners
Ripple announced the 15 winners of Phase I of its CBDC Innovate Challenge who will move forward to Phase II, where they will begin building, refining, and developing their applications. The goal of CBDC Innovate 2023 is to build or update a fintech or payments solution utilizing Ripple’s CBDC solutions. In Phase I applicants ideated applications on the public XRP Ledger. In Phase II the 15 finalists, including WhisperCash, will build on Ripple’s Private CBDC Platform.
#Fintech#CBDC#Ripple#Sandboxes#HackaThon#WhisperCash#DFC
·ripplecbdc.devpost.com·
Ripple announces the CBDC Innovate Phase I winners
How a CBDC Created Chaos and Poverty in Nigeria
How a CBDC Created Chaos and Poverty in Nigeria
"Since Emefiele’s arrest, the specter of a CBDC monopoly has disappeared. Those who find electronic money more convenient use it. When that convenience is lost, they will switch to cash or its digital alternative. People now know that there wouldn’t have been such chaos if the currency digitalization was voluntary and not accompanied by cash delegalization. Will Nigeria’s case help other global central bankers and citizens arrive at a similar conclusion? Probably not, so we await the next economic disaster.
#Fintech#CBDC#Mises#Dystopia#Conspiracy#DFC
·mises.org·
How a CBDC Created Chaos and Poverty in Nigeria
The National Bank of Georgia is moving ahead with its CBDC project
The National Bank of Georgia is moving ahead with its CBDC project
The National Bank of Georgia (NBG) will launch a "limited access live pilot environment" (sounds like a proof-of-concept phase to me) to test central bank digital currency (CBDC) system technology capabilities and potential applications. At this stage, the NBG remains technologically agnostic for the Digital GEL project, and has announced a list of nine platform vendors to join the "on field" exploration. Upon selection stage completion, NBG will identify one of the vendors to move to the pilot stage to test the CBDC platform in a limited-time run live environment and evaluate the practical use cases. (There were some surprises to me in the list of vendors!)
#Fintech#CBDC#Georgia#DFC
·nbg.gov.ge·
The National Bank of Georgia is moving ahead with its CBDC project
Project Mariana: Cross-border exchange of wholesale CBDCs using automated market-makers
Project Mariana: Cross-border exchange of wholesale CBDCs using automated market-makers
The Bank for International Settlements (BIS) published the results of its Project Mariana proof of concept that demonstrated technical feasibility of automated market-makers (AMMs) for cross-border trading and settlement of wholesale central bank digital currencies (wCBDCs). It borrows ideas and concepts from decentralized finance (DeFi) and leverages a public blockchain to design and test a transnational transnational FX interbank market using wCBDCs. Project Mariana is a collaboration between the BIS Innovation Hub, the Bank of France, the Monetary Authority of Singapore and the Swiss National Bank.
#Fintech#CBDC#wCBDC#CrossBorder#Payments#AMMs#BIS#DFC
·bis.org·
Project Mariana: Cross-border exchange of wholesale CBDCs using automated market-makers
Towards a legal framework for central bank digital currencies
Towards a legal framework for central bank digital currencies
Agustín Carstens, General Manager of the Bank for International Settlements (BIS), gave a speech focused on the need for central bank digital currency (CBDC) legal frameworks to advance if CBDC is to deliver on its potential. Unfortunately, in many jurisdictions, outdated legal frameworks could hinder their deployment, and work to address these issues needs to begin in earnest. A CBDC also needs to function within a framework of clearly defined rights and obligations. At least three core elements must be preserved: the privacy of CBDC users and the protection of their data; the integrity of the financial system; and the ability of users to choose between CBDC and other forms of money. These are fundamental issues and the legal framework for CBDC must get them right.
#Fintech#CBDC#BIS#DFC
·bis.org·
Towards a legal framework for central bank digital currencies
Runs and Flights to Safety: Are Stablecoins the New Money Market Funds?
Runs and Flights to Safety: Are Stablecoins the New Money Market Funds?
NY Fed staff investigated similarities and differences between stablecoins and money market funds (MMFs), comparing investor behavior during the stablecoin runs of 2022 and 2023 to investor behavior during the MMF runs of 2008 and 2020. They found that, similarly to MMF investors, stablecoin investors engage in flight to safety, with net flows from riskier to safer stablecoins during run periods. However, whereas in MMFs, run risk has historically materialized only in prime funds, with stablecoins, runs occurred in different stablecoin types across the 2022 and 2023 episodes. The analysis also shows that, similarly to intrafamily flows in MMFs, stablecoin flows tend to be within blockchains. A discrete “break-the-buck” threshold of $0.99 was identified, below which redemptions accelerate.
#Fintech#CryptoAssets#Stablecoins#FinancialStability#DFC
·papers.ssrn.com·
Runs and Flights to Safety: Are Stablecoins the New Money Market Funds?
mBridge CBDC project preparing for new members, launch of minimum viable product
mBridge CBDC project preparing for new members, launch of minimum viable product
According to the Hong Kong Monetary Authority (HKMA) the latest Project mBridge proof-of-concept (PoC) test has demonstrated that the wholesale central bank digital currency (CBDC) platform can speed up cross-border payments at reduced cost and with better transparency. Project mBridge is a collaboration between the Bank for International Settlements (BIS), HKMA, and the central banks of China,  Thailand, and United Arab Emirates, and commercial banks from each of those jurisdictions. More central banks are slated to join the platform, and a minimum viable product, with the aim of paving the way for the gradual commercialization will soon be launched. https://www.bis.org/review/r230925d.htm
#Fintech#CBDC#wCBDC#BIS#HongKong#China#Thailand#UAE#Payments#CrossBorder#DFC
·cointelegraph.com·
mBridge CBDC project preparing for new members, launch of minimum viable product
Japan's amended Payment Services Act stablecoin provisions
Japan's amended Payment Services Act stablecoin provisions
Japan's revised Payments Services Act was passed by the Diet and promulgated in June 2022, with the aim of introducing new regulations on stable coins. This amendment has entered into force on June 1, 2023. Under the new regulations stablecoins that can be redeemable in fiat currencies will be regulated as electronic payment instruments (EPIs). Those who are permitted to issue EPIs directly to Japanese residents are limited to banks, funds transfer services providers, trust banks or trust companies that are licensed in Japan. Only licensed EPI business providers (EPIBPs) can sell or purchases EPIs, act as an intermediary for EPI issuance, sales and purchases, or provide EPI custody services. EPIBPs are subject to AML/CFT regulations, including a travel rule. In other words, EPIBPs are required to provide the customer's identification information when transferring EPIs to any other EPIBPs.
#Fintech#CryptoAssets#Stablecoins#Regulation#Japan#DFC
·mondaq.com·
Japan's amended Payment Services Act stablecoin provisions
The Virtual Currency Regulation Review
The Virtual Currency Regulation Review
Japanese law does not have a unified regime applicable to tokens issued or minted on a blockchain. The legal status of tokens under Japanese law is determined in accordance with their functions and uses. For example, cryptocurrency and utility tokens such as BTC and ETH are regulated as cryptoassets under the Payment Services Act (PSA). A business operator that engages in the business of buying, selling or exchanging cryptocurrencies or intermediating these activities, or managing cryptocurrencies for the benefit of others, is required to register as a cryptoasset exchange service provider (CAESP).
#Fintech#CryptoAssets#Stablecoins#Regulation#Japan#DFC
·thelawreviews.co.uk·
The Virtual Currency Regulation Review
Binance exploring stablecoin issuance on MUFG Progmat Coin platform
Binance exploring stablecoin issuance on MUFG Progmat Coin platform
Binance is exploring issuing stablecoins on the "Progmat Coin" tokenization platform founded by Mitsubishi UFJ Trust and Banking Corporation (MUFG). The Progmat Coin platform allows for transfers and exchanges of stablecoins on various blockchains, including public permissionless blockchains such as Ethereum, in accordance with Japan's revised Payments Services Act enforced in June 2023. For such stablecoins, issuers and intermediaries are required to take measures to prevent a transfer of such stablecoins to customers whose identity has not been verified, even though I assume they're not responsible for off-platform transfers between customers. https://www.prnewswire.co.uk/news-releases/mitsubishi-ufj-trust-and-banking-corporation-and-binance-japan-commence-joint-study-to-explore-new-stablecoin-issuance-using-progmat-platform-to-accelerate-web3-adoption-301938333.html
#Fintech#CryptoAssets#Stablecoins#Binance#Progmat#MUFG#Regulation#Japan#DFC
·ledgerinsights.com·
Binance exploring stablecoin issuance on MUFG Progmat Coin platform
Digital yuan app adds prepaid Mastercard Visa top-ups for tourists
Digital yuan app adds prepaid Mastercard Visa top-ups for tourists
Tourists visiting the People’s Republic of China can now pre-charge their digital yuan wallets using Visa and Mastercard payment options. Inbound tourists are reportedly able to make use of overseas mobile numbers to register and open e-CNY wallets and make use of the recharge wallet feature, which supports Visa and Mastercard payments. They must “top up” with at least 100 yuan (around $14) and if they have any funds left in their wallets when they depart China, they can request a refund, after which funds are automatically transferred back to their credit card accounts. This coincides with the start of the Asian Games. https://cryptonews.com/news/foreign-travelers-can-now-use-chinas-digital-yuan-app.htm
#Fintech#CBDC#China#MasterCard#VISA#DFC
·cointelegraph.com·
Digital yuan app adds prepaid Mastercard Visa top-ups for tourists
Stablecoins Get A New Pal
Stablecoins Get A New Pal
"I think it is entirely consistent with the evidence to remain sceptical about the impact of cryptocurrency on the wider economy, while at the same time being excited about tokenisation and the transition to that web3 world of decentralised finance protocols exchanging digital assets backed by regulated institutions with digital currencies, similarly backed by regulated institutions. In this respect, PayPal’s move will I am sure be seen in hindsight as a cusp moment and a vote of confidence in the web3 world. "
#CryptoAssets#Stablecoins#PayPal#PYUSD#Fintech#DFC
·dgwbirch.substack.com·
Stablecoins Get A New Pal
Coinbase: "What if we call them rewards instead of interest payments?"
Coinbase: "What if we call them rewards instead of interest payments?"
"Coinbase isn't a bank, nor is it an SEC-approved money market mutual fund. And unlike Wise and PayPal, Coinbase's interest payments aren't powered under the hood by a bank. So how does Coinbase pull this off? In short, Coinbase seems to have seized on a third-path to paying interest. It cleverly describes the ability to receive interest as a "loyalty program", which puts it in the same bucket as Starbucks Rewards or Delta's air miles program. The program itself is dubbed USDC Rewards, and in its FAQ, customers are consistently described as "earning rewards" rather than "earning interest." "
#Fintech#CryptoAssets#Stablecoins#Circle#Coinbase#USDC#DFC
·jpkoning.blogspot.com·
Coinbase: "What if we call them rewards instead of interest payments?"
CBDC's Role in Promoting Financial Inclusion
CBDC's Role in Promoting Financial Inclusion
The IMF published a paper on a step-by-step framework to help assess central bank digital currency's (CBDC’s) value proposition for improving financial inclusion. The impact of CBDC for improving financial inclusion is currently speculative, where further evidence and experience are needed to fully understand benefits and limitations. That said, it provides an opportunity that could be actively explored alongside other solutions for improving financial inclusion. Moreover, CBDC could be considered as one component of a broader set of measures to improve financial inclusion.
#Fintech#CBDC#FinancialInclusion#IMF#DFC
·imf.org·
CBDC's Role in Promoting Financial Inclusion
Tether Resumes USDT Loans, Insists It Maintains Excess Reserves
Tether Resumes USDT Loans, Insists It Maintains Excess Reserves
Tether has resumed providing new loans denominated in USDT to clients, a move that comes nearly a year after the company had announced its intention to discontinue offering collateralized loans in 2023. As of June 30, 2023, the latest quarterly attestation showed assets that included $5.5 billion in loans, up from $5.3 billion in the previous quarter. A Tether spokesperson said the company's aim is to prevent any significant depletion of its customers’ liquidity or the need for them to sell their collateral at potentially unfavorable prices, which could result in firesale losses. https://www.bloomberg.com/opinion/articles/2023-09-21/tether-keeps-lending-tethers
#Fintech#CryptoAssets#Stablecoins#Tether#USDT#DFC
·decrypt.co·
Tether Resumes USDT Loans, Insists It Maintains Excess Reserves
CBDC Anti-Surveillance State Act Passes Financial Services Committee
CBDC Anti-Surveillance State Act Passes Financial Services Committee
The US House Financial Services Committee considered Majority Whip Emmer’s CBDC Anti-Surveillance State Act. The bill was passed out of the Committee and reported favorably to the House floor during the markup session, an important step toward passing this legislation through Congress. The Act would prevent the Federal Reserve from issuing a central bank digital currency (CBDC) directly or indirectly to individuals or maintaining accounts on behalf of individuals. It would also prohibit the Secretary of the Treasury from directing the Federal Reserve to issue a CBDC and clarifies that a CBDC can only be issued pursuant to congressional authorization. https://docs.house.gov/meetings/BA/BA00/20230920/116343/BILLS-118-HR5403-E000294-Amdt-12.pdf
#Fintech#CBDC#UnitedStates#DFC
·emmer.house.gov·
CBDC Anti-Surveillance State Act Passes Financial Services Committee
JP Morgan is part of Regulated Liability Network digital currency project
JP Morgan is part of Regulated Liability Network digital currency project
JP Morgan is participating in the Regulated Liability Network (RLN). Earlier in September 2023, the UK arm of the RLN shared the findings of its latest work without mentioning the participants. The network aims to bring together banks and central banks to support different types of digital currency on the same network. That includes central bank digital currency (CBDC), deposit tokens and regulated stablecoins. In July the US RLN published a report involving several other U.S. banks, the New York Federal Reserve’s innovation arm and Mastercard. The premise that underpins the RLN is interoperability so that banks don’t need to use the same type of blockchain to transfer tokens between them.
#Fintech#CryptoAssets#Stablecoins#Blockchain#RegulatedLiabilityNetwork#DFC
·ledgerinsights.com·
JP Morgan is part of Regulated Liability Network digital currency project
PayPal USD (PYUSD) is now available on Venmo
PayPal USD (PYUSD) is now available on Venmo
PayPal's PYUSD on-chain dollar-denominated stablecoin 100% backed by U.S. dollar deposits, short-term U.S Treasuries, and similar cash equivalents, is available on Venmo to select users and will be rolling out fully in the coming weeks. Transfers between PayPal and Venmo users are fast and free, connecting two wallets with millions of users each. Individuals using compatible external wallets, and merchants accepting payments in PYUSD, will also be able to receive transfers from Venmo users. Blockchain network fees apply. Also, PYUSD has been greenlisted by the New York State Department of Financial Services, making it easier for virtual currency entities licensed in New York to support PYUSD.
#Fintech#CryptoAssets#Stablecoins#PayPal#Venmo#PYUSD#DFC
·newsroom.paypal-corp.com·
PayPal USD (PYUSD) is now available on Venmo
BIS and IADB join forces to foster LATAM innovation and financial inclusion
BIS and IADB join forces to foster LATAM innovation and financial inclusion
The Bank for International Settlements (BIS) and the Inter-American Development Bank (IDB) are joining forces to foster innovation and financial inclusion in Latin America and the Caribbean by exploring and developing technology that can help to modernise the region's financial systems. The first collaboration between the two institutions will be on Project FuSSE (Fully Scalable Settlement Engine, pronounced as fyooz). Project FuSSE aims to design and test backend functionality that can be adapted to multiple types of infrastructures, allowing them to process a continuously growing number of transactions. FuSSE aims to test highly scalable systems in three dimensions: the number of transactions, the types of assets and the number of participants. The technology could support payment systems, security settlement systems or even central bank digital currencies.
#Fintech#Plumbing#Settlement#CBDC#BIS#IADB#DFC
·bis.org·
BIS and IADB join forces to foster LATAM innovation and financial inclusion
Central Bank Digital Currency Fact Sheet
Central Bank Digital Currency Fact Sheet
"CBDCs would imperil Americans’ financial freedom, privacy, and prosperity while devastating community banks. With its power of the purse, which includes the authority to administer and regulate our currency, Congress has the authority to protect the American people by stopping the creation and use of a CBDC. Five bills and one resolution have been introduced thus far in the 118th Congress to prevent the issuance of a CBDC."
#Fintech#CBDC#UnitedStates#DFC
·americafirstpolicy.com·
Central Bank Digital Currency Fact Sheet
A Guide to CBDC Product Development
A Guide to CBDC Product Development
The IMF published a paper that develops a CBDC-specific project management methodology that establishes a common terminology and offers guidance to development teams on best practices for addressing the complex requirements and risks associated with CBDC. It is centered on an original five-step approach called the “5P Methodology”: preparation, proof-of-concept, prototypes, pilots, and production. The methodology emphasizes a phased approach to CBDC research and development, with strong focus on research preparation, experimentation and testing, risk management, stakeholder engagement, and cyber resilience.
#Fintech#CBDC#IMF#DFC
·imf.org·
A Guide to CBDC Product Development
How Should Central Banks Explore CBDC?
How Should Central Banks Explore CBDC?
The IMF published a paper that proposes a dynamic central bank digital currency (CBDC) decision-making framework under which the central bank can make decisions under uncertainty. A phased and iterative approach could allow central banks to adjust the pace, scale, and scope of their CBDC projects as the domestic and international environment changes. If designed appropriately, CBDCs could allow central banks to modernize payment systems and future-proof central bank money as the pace and shape of digitalization continues to evolve. However, the decision to proceed with CBDC exploration and an eventual launch would need to be jurisdiction specific, depending on the degree of digitalization of the economy, the legal and regulatory frameworks, and the central bank’s internal capacity.
#Fintech#CBDC#IMF#DFC
·imf.org·
How Should Central Banks Explore CBDC?
Third meeting of the ECB New Technologies for wholesale settlement contact group
Third meeting of the ECB New Technologies for wholesale settlement contact group

As part of a new recurring agenda item, members were invited to report on business cases in the payments, securities, and collateral management domains where DLT could make a difference compared to non-DLT settlement systems. https://www.ecb.europa.eu/paym/groups/ntwcg/pdf/ecb.ntwdocs230907_presentations_3rd_ntwcg_meeting.en.pdf https://www.ecb.europa.eu/paym/groups/ntwcg/pdf/ecb.ntwdocs230907_business_cases_3rd_ntwcg_meeting.en.pdf

#Fintech#CBDC#Eurozone#DFC
·ecb.europa.eu·
Third meeting of the ECB New Technologies for wholesale settlement contact group