DFC

5260 bookmarks
Newest
Emtech to advance its regtech and CBDC stack solutions
Emtech to advance its regtech and CBDC stack solutions
"Emtech, an African provider of central banking infrastructure, introduced its Central Bank Digital Currency (CBDC) Innovation kit last month. The kit caters to fintechs and financial service providers interested in experimenting with solutions and business models based on digital currencies pioneered by central banks."
#Fintech#CBDC#Emtech#DFC
·techcrunch.com·
Emtech to advance its regtech and CBDC stack solutions
Towards acceptance criteria for a digital euro
Towards acceptance criteria for a digital euro
An IU International University of Applied Sciences paper presented the results of a survey of 207 Germans regarding their attitudes towards a digital euro. The results suggest that a digital euro should be designed as a digital version of physical cash, and it should be well and seamlessly integrated into the existing landscape of banking applications. However, the potential benefits are not yet clear, especially regarding transparency and trustworthiness, and some respondents perceived little added value compared to bank accounts or cash.
#Fintech#CBDC#Eurozone#DFC
·econstor.eu·
Towards acceptance criteria for a digital euro
Central bank digital currency technical guideline
Central bank digital currency technical guideline
The German Federal Office for Information Security (BSI) published a technical guideline (TR) describing requirements that ensure a high level of IT security for the backend systems that support the operation of a central bank digital currency (CBDC) ecosystem. The CBDC ecosystem consists of the backend systems operated by the central bank, the frontend functionality made available to end users by wallet providers, exchange points, which may be operated by third parties other than the central bank, and, potentially, additional service providers. If implemented, the CBDC ecosystem constitutes a critical infrastructure, and the TR aims to ensure that it is made resilient to a wide range of attacks. In addition to implementing the goal of security-by-design, this TR also considers some privacy aspects.
#Fintech#CBDC#CyberSecurity#Germany#Eurozone#DFC
·bsi.bund.de·
Central bank digital currency technical guideline
Simulating the Adoption of a Retail CBDC
Simulating the Adoption of a Retail CBDC
"We use agent-based modelling to build a digital twin of the retail payment system, where heterogeneous consumers and merchants interact, learn, and adapt as they meet and use different monies and payment instruments. As we introduce an rCBDC, the model simulates its adoption. We calibrate this digital twin to Spain’s retail payment ecosystem. We run hypothetical scenarios that correspond to publicly available discussions about the digital euro. Results show that introducing an rCBDC without attractive design options and stimulus for consumers and merchants results in low and slow adoption. Results suggest that the reverse waterfall functionality and a positive remuneration spread are effective to foster adoption, whereas balance limits and top-up limits are effective to restrain adoption. Results also suggest that combining design options and stimulus with limits to holding rCBDCs could aid to achieve a sweet spot of adoption."
#Fintech#CBDC#DFC
·research.tilburguniversity.edu·
Simulating the Adoption of a Retail CBDC
The real scandal of central bank digital currency
The real scandal of central bank digital currency
For many decades, cash has been the only form of money on which no interest rate is paid, disadvantaging those who hold it. With the advent of CBDCs, we could remunerate cash and level the monetary playing field to the benefit of all citizens. Designers of CBDCs have foreclosed on this option, opting to continue levying a large, stealthy, regressive tax on their citizens. They have done so to protect banks and their own finance, both of whom have long benefited from this privilege. [Andy Haldane]
#Fintech#CBDC#DFC
·ft.com·
The real scandal of central bank digital currency
Implementing Open and Standardised API for Cross-Border Payments
Implementing Open and Standardised API for Cross-Border Payments
"Open and harmonised APIs have allowed network-neutral and cross-technology platforms to carry out financial data exchange while tackling system sustainability issues by providing them a single, standardised set of APIs rather than customised APIs. Through open and harmonised APIs, improved and expanded financial services can be offered to the public. These financial services could enable a higher level of financial inclusion globally, thus reducing the digital access gap within and between countries."
#Fintech#CBDC#Payments#CrossBorder#API#DFC
·orfonline.org·
Implementing Open and Standardised API for Cross-Border Payments
Central banks should ease fears over CBDC privacy
Central banks should ease fears over CBDC privacy
"The ability to hold cash and spend it without authorisation is an important source of personal privacy, so it’s entirely natural for people to be wary of new technologies digitising this type of money. Open collaboration between central banks, regulators and technology providers across both the public and private sectors will be key in fostering the necessary consumer trust to make this transition credible."
#Fintech#CBDC#Privacy#Payments#R3#DFC
·ft.com·
Central banks should ease fears over CBDC privacy
Without meaning to, Nigel Farage makes the best case for a CBDC
Without meaning to, Nigel Farage makes the best case for a CBDC
SODA's Chris Ostrowski published an article that makes the case for some sort of public digital money that will not be at the mercy of organizations that use our payment dependency for their own ends. If we don’t create some form of public digital money, in which a democratically elected government sets the framework (as they do with cash) on how it is used, then we will inevitably see more and more cases where people are made ‘non-persons’ like Nigel Farage recently was by Natwest. A central bank digital currency (CBDC) is the best guarantee for our (cash like) rights, but it's so hard to get this side of the story out there, thanks to the 'CBDC = government control' narrative.
#Fintech#CBDC#Privacy#Payments#SODA#DFC
·linkedin.com·
Without meaning to, Nigel Farage makes the best case for a CBDC
More details on the Republic of Palau kluk stablecoin proof-of-concept
More details on the Republic of Palau kluk stablecoin proof-of-concept
Ripple has provided more details on the U.S. dollar-backed Palau Stablecoin (PSC) proof-of-concept (PoC). Each PSC will be valued at one U.S. dollar guaranteed by a 1:1 reserve in fiat currency and issued on Ripple's XRP Ledger (XRPL). Palau’s Ministry of Finance (MOF) will supervise the system and trigger the issuance and redemption of stablecoin units, while always guaranteeing the 1:1 reserve. The PoC will roll out in phases, with the first three-month phase involving about 200 government employees and local merchants. If the first phase is successful,  additional phases will roll out later in the year (2023). https://www.palaugov.pw/wp-content/uploads/PALAU-STABLECOIN-FAQs-2.17.23.pdf
#Fintech#CryptoAssets#Stablecoins#Sovereign#CBDC#Ripple#Palau#DFC
·businesswire.com·
More details on the Republic of Palau kluk stablecoin proof-of-concept
CFA Institute Global Survey Shows Limited Support for, and Understanding of, CBDCs
CFA Institute Global Survey Shows Limited Support for, and Understanding of, CBDCs
A global survey of Chartered Financial Analysts (CFA) Institute members found limited understanding of and support for central bank digital currency (CBDC). 42% of respondents believe that central banks should launch CBDCs, 34% disagreed, while only 13% said they had a strong understanding of CBDCs. The top reason cited to support launching a CBDC was to accelerate payments and transfers, with the chief concerns being focused on cybersecurity and fraud, data privacy, and lack of use cases. Respondents in emerging markets were more receptive to CBDC and they CBDC would enhance financial inclusion. Respondents in advanced economies were generally more satisfied with the current financial infrastructure and more skeptical of the need for a CBDC.
#Fintech#CBDC#DFC
·cfainstitute.org·
CFA Institute Global Survey Shows Limited Support for, and Understanding of, CBDCs
Republic Of Palau And Ripple Labs Mint First Stablecoin
Republic Of Palau And Ripple Labs Mint First Stablecoin
The Republic of Palau has collaborated with Ripple Labs to mint its inaugural stablecoin, the XRP Ledger (XRPL) based Palau Stablecoin (PSC). The island state doesn't have a central bank and the US dollar is the country's main medium of exchange. The Ministry aims to reduce payment costs within the Palau and enhance access to financial services, particularly for underserved communities and socio-economic groups, using digital solutions. https://twitter.com/JHX_1138/status/1683445766952562689
#Fintech#CryptoAssets#Stablecoins#Sovereign#CBDC#GovCoins#Palau#XRP#Ripple#DFC
·bitcoinist.com·
Republic Of Palau And Ripple Labs Mint First Stablecoin
Putin signs law on introduction of digital ruble in Russia
Putin signs law on introduction of digital ruble in Russia
Russian President Vladimir Putin signed the digital ruble bill into law on July 24, 2023.  It will take effect on August 1, 2023, with all but one rule ready to be enforced. Article number three — which includes amendments to several Russian federal laws, including those related to bankruptcy and inheritance — is expected to take effect from August 2024. The new legislation empowers the Russian central bank to launch the first CBDC pilot in August. According to Bank of Russia governor Elvira Nabiullina, Russians will not be forced to use the digital ruble. http://publication.pravo.gov.ru/document/0001202307240009?index=1
#Fintech#CBDC#Russia#DFC
·cointelegraph.com·
Putin signs law on introduction of digital ruble in Russia
State Bank of Pakistan working on central bank digital currency
State Bank of Pakistan working on central bank digital currency
State Bank of Pakistan (SBP) Governor Jameel Ahmad reportedly informed the Senate’s Standing Committee on Finance and Revenue that the central bank is working on CBDC. The governor said that the SBP is proceeding cautiously, and is currently reviewing work done by other central banks.
#Fintech#CBDC#Pakistan#DFC
·propakistani.pk·
State Bank of Pakistan working on central bank digital currency
Bank of Japan launches forum with 60 firms on digital yen pilot program
Bank of Japan launches forum with 60 firms on digital yen pilot program
The Bank of Japan (BoJ) launched a CBDC Forum comprised of 60 companies around various themes relating to the potential issuance of a digital yen. Companies were drawn from a range of industries including banking, payment services, retail, information technology, and fintech. Initial working groups will cover fundamental external systems CBDC connectivity, and CBDC system overlay services. Future groups will cover user onboarding, user device interfaces/ experience, and horizontal coexistence with other payment instruments.
#Fintech#CBDC#Japan#DFC
·boj.or.jp·
Bank of Japan launches forum with 60 firms on digital yen pilot program
Banque de France publishes 2nd report on DLT-based wCBDC experiments
Banque de France publishes 2nd report on DLT-based wCBDC experiments
The Banque de France (BdF) published an updated set of conclusions and lessons learned from its twelve distributed ledger technology (DLT) based wholesale central bank digital currency (CBDC) experiments. They show the operational feasibility and practical implementation of the three models it has conceptualized for issuing DLT-based wholesale CBDC; the interoperability, distribution and integration models. They all address key aspects of wholesale CBDC implementation and each model offers different capabilities and functionalities compared to the conventional systems, so they can be complementary rather than exclusive.
#Fintech#CBDC#wCBDC#DLT#Eurozone#France#DFC
·banque-france.fr·
Banque de France publishes 2nd report on DLT-based wCBDC experiments
Bank of Korea publishes update on its CBDC experiments
Bank of Korea publishes update on its CBDC experiments
The Bank of Korea (BOK) provided updates on its central bank digital currency (CBDC) proof-of-concept work in its 2022 Payment and Settlement Systems Report. This included investigating smart contracts, near-field communications (NFC) based offline payments and cross-border payments. Also, the BOK connected 14 banks with its simulated CBDC system to verify its functioning. It handled 2,000 transactions per second but slowed down as it reached capacity, so further improvements are needed. The bank also tested a zero-knowledge proof (ZKP) protocol to improve privacy, but it slowed the processing speed markedly. https://www.bok.or.kr/eng/bbs/B0000179/view.do?nttId=10078478&menuNo=400063
#Fintech#CBDC#Korea#ZKP#Offline#Privacy#DFC
·cointelegraph.com·
Bank of Korea publishes update on its CBDC experiments
China's digital yuan transactions seeing strong momentum, says PBOC gov Yi
China's digital yuan transactions seeing strong momentum, says PBOC gov Yi
Transactions using China's digital yuan hit 1.8 trillion yuan ($250 billion) at end-June, according to People's Bank of China (PBOC) Governor Yi Gang, marking a jump from over 100 billion yuan as of August last year. However, e-CNY in circulation accounted for only 0.16% of China's M0 money supply, or cash in circulation, Yi pointed out that, although the balance is small, its transaction velocity is higher and more efficient than cash.
#Fintech#CBDC#China#DFC
·reuters.com·
China's digital yuan transactions seeing strong momentum, says PBOC gov Yi
eCurrency launches Consulting and Advisory Services
eCurrency launches Consulting and Advisory Services
"eCurrency Mint Inc announces the launch of Consulting and Advisory Services for the feasibility, design, plan and implementation of Central Bank Digital Currency (CBDC). The service provides access to senior-level career central bankers, world renowned economists and recognized thought leaders with real-world experiences in the design, implementation and operationalization of CBDC. The consultancy services include policy development, regulatory compliance, market dynamics, technology implementation, security measures and operational management."
#Fintech#CBDC#eCurrency#DFC
·prnewswire.com·
eCurrency launches Consulting and Advisory Services
Banking on Tokens: A Primer on Tokenized Commercial Bank Deposits
Banking on Tokens: A Primer on Tokenized Commercial Bank Deposits
The Digital Euro Association (DEA) published a paper that dives into the potential impact of tokenized deposits (TDs) on financial stability, monetary policy, anti-money laundering (AML) and know your customer (KYC) processes, and privacy considerations. The paper offers comprehensive primer into the potential of TDs, alongside considerations on how they could complement and co-exist with other forms of digital money.
#Fintech#Tokenization#DepositTokens#DFC
·blog.digital-euro-association.de·
Banking on Tokens: A Primer on Tokenized Commercial Bank Deposits
Jamaica, we have a CBDC
Jamaica, we have a CBDC
"Despite the less-than-stellar results from places that took an early plunge, CBDCs are continuing their shaky march. Focusing on Jamaica's JAM-DEX, bringing more Jamaicans into the formal financial system would be an obvious win, giving the state more access to taxable income and individuals and businesses more access to capital. But it is not as simple as offering a competitor to cash and the reasons that people don’t engage with the financial system are varied."
#Fintech#CBDC#Jamaica#DFC
·ft.com·
Jamaica, we have a CBDC
FSB finalises global regulatory framework for crypto-asset activities
FSB finalises global regulatory framework for crypto-asset activities
The Financial Stability Board (FSB) published its global regulatory framework for crypto-asset activities and markets, and "global stablecoin" arrangements, to promote the comprehensiveness and international consistency of regulatory and supervisory approaches. They build on the principles – ‘same activity, same risk, same regulation’; high-level and flexible; and technology neutral. The recommendations focus on addressing risks to financial stability and do not comprehensively cover all specific risk categories related to crypto-asset activities.
#Fintech#CryptoAssets#Stablecoins#Regulation#Supervision#FSB#DFC
·fsb.org·
FSB finalises global regulatory framework for crypto-asset activities
Crunchfish sign first Digital Cash commercial agreement
Crunchfish sign first Digital Cash commercial agreement
"Crunchfish and IDFC FIRST Bank have now entered into a commercial license agreement. IDFC FIRST Bank have licensed both Digital Cash offline, for full offline transactions in proximity, as well as Digital Cash telecom, which enables PPI on UPI payments using the telecom network if the payer lacks internet data connectivity. Crunchfish and IDFC FIRST Bank are working closely together on integration of Digital Cash into IDFC FIRST Bank’s payment apps. First release to IDFC FIRST Bank customers is planned for Q3. Initial use case will be to enable offline UPI payments using Digital Cash telecom.
#Fintech#CBDC#Offline#Crunchfish#DFC
·crunchfish.com·
Crunchfish sign first Digital Cash commercial agreement
Crunchfish Digital Cash 2.2 – Consecutive Offline Payments
Crunchfish Digital Cash 2.2 – Consecutive Offline Payments
"Crunchfish have today released Digital Cash 2.2 enabling consecutive offline payments, in which the payer and payee exchange a transaction offline, and the payee can immediately spend the received funds in another offline transaction without going online. This feature may be the most desirable approach for CBDC given its resemblance to the properties of cash."
#Fintech#CBDC#Offline#Crunchfish#DFC
·crunchfish.com·
Crunchfish Digital Cash 2.2 – Consecutive Offline Payments
Hamilton: A High-Performance CBDC Transaction Processor
Hamilton: A High-Performance CBDC Transaction Processor
"We present Hamilton, a transaction processor for CBDC that provides high throughput, low latency, and fault tolerance, and that minimizes data stored in the transaction processor and provides flexibility for multiple types of programmability and a variety of roles for financial intermediaries. Hamilton does so by decoupling the steps of transaction validation so only the validating layer needs to see the details of a transaction, and by co-designing the transaction format with a simple version of a two-phase-commit protocol, which efficiently applies state updates in parallel. An evaluation shows Hamilton achieves 1.7M transactions per second in a geo-distributed setting."
#Fintech#CBDC#UnitedStates#OpenSource#DFC
·usenix.org·
Hamilton: A High-Performance CBDC Transaction Processor
Runs on Stablecoins
Runs on Stablecoins
"In May 2022, there was a run on Terra, an algorithmic stablecoin whose price broke its peg of $1 and crashed to zero. The run spilled over to the entire stablecoin sector, with stablecoins backed by riskier assets heavily affected and investors fleeing to less risky U.S.-based stablecoins regulated by U.S. authorities. As the digital asset ecosystem continues to grow, its potential to affect traditional financial markets and a broader section of households and firms could grow accordingly."
#Fintech#CryptoAssets#Stablecoins#DFC
·libertystreeteconomics.newyorkfed.org·
Runs on Stablecoins
Progress on the investigation phase of a digital euro – fourth report
Progress on the investigation phase of a digital euro – fourth report
The European Central Bank (ECB) published a digital euro project update. It was made clear that a digital euro will offer basic services free of charge. To foster network effects, intermediaries will be compensated for the services they provide, as they are for comparable electronic payments, while legislative safeguards will prevent merchants from being overcharged by intermediaries. The Eurosystem would bear its own costs, as it does for banknotes. Also, online and offline functionalities will be released simultaneously from the outset. Offline functionality will settle transactions using “secure hardware” to avoid hacking and forging, transactions will be settled immediately between devices, payments received will be transferable to another device without first connecting to the internet, and the Eurosystem will not see users’ personal details or their payment patterns.
#Fintech#CBDC#Eurozone#Offline#DFC
·ecb.europa.eu·
Progress on the investigation phase of a digital euro – fourth report
HKMA advancing with CBDC experiments but not ready to commit
HKMA advancing with CBDC experiments but not ready to commit
The Hong Kong Monetary Authority (HKMA) has yet to determine if it should issue CBDC, but it continues to experiment. 16 firms are participating in the pilot programs, working on 14 projects on topics including programmable payments, tokenized deposits, settlement of tokenized assets and offline payments. Cross-border payments applications are especially thorny due to the legal challenges of connecting payments across multiple jurisdictions, which requires a lot of political will across multiple jurisdictions.
#Fintech#CBDC#HongKong#DFC
·omfif.org·
HKMA advancing with CBDC experiments but not ready to commit
Bank of China tests SIM card NFC payments for e-CNY
Bank of China tests SIM card NFC payments for e-CNY
The Bank of China has partnered with China Telecom and China Unicom to test SIM card near-field communication (NFC) payments for the e-CNY on specific Android smartphones in certain regions. The SIM card hardware wallet shares its balance with the main wallet, eliminating the need for separate top-ups. In order to make payments, users are only required to move their mobile phones close to point of sales terminals, even with a switched-off smartphone.
#Fintech#CBDC#China#Offline#NFC#DFC
·thepaypers.com·
Bank of China tests SIM card NFC payments for e-CNY