DFC

5260 bookmarks
Newest
Tether's market share grows to 61%, a two-year high
Tether's market share grows to 61%, a two-year high
Tether's USDT opened the year at a market cap of $66.2 billion, but has grown 22% to $81 billion. Circle's USDC has moved the opposite way, losing 21% of its market cap. USDT’s share of the stablecoin space is up to 61.5%, its highest mark in two years. The collapse of TerraUSD in May 2022 and shutdown of BinanceUSD (BUSD) in February have increased concentration in the stablecoin market. USDC is struggling amid regulatory concerns in the United States and fallout from banking chaos, when Circle revealed it had 8.25% of its USDC reserves in Silicon Valley Bank. Meanwhile, concerns persist exist around USDT over its underlying reserves.
#Fintech#CryptoAssets#Stablecoins#Tether#Circle#USDT#USDC#DFC
·coinjournal.net·
Tether's market share grows to 61%, a two-year high
Considerations for a US central bank digital currency
Considerations for a US central bank digital currency
US Federal Reserve Board Governor Michelle Bowman" gave a speech on her thoughts regarding U.S. central bank digital currency (CBDC). The whole speech is worth a read, but here is her key takeaways" "A potential U.S. CBDC, must be viewed through the lens of whether and how the payment system would be improved beyond what instant payment services will achieve. We should ask what current frictions exist or may emerge in the payment system that only a CBDC can solve, or that a CBDC can solve most efficiently? ...There could be some promise for wholesale CBDCs in the future for settlement of certain financial market transactions and processing international payments. When it comes to some of the broader design and policy issues, particularly those around consumer privacy and impacts on the banking system, it is difficult to imagine a world where the tradeoffs between benefits and unintended consequences could justify a direct access CBDC for uses beyond interbank and wholesale transactions."
#Fintech#CBDC#UnitedStates#DFC
·federalreserve.gov·
Considerations for a US central bank digital currency
Universal Monetary Unit White Paper
Universal Monetary Unit White Paper
The Digital Currency Monetary Authority (DCMA) has innovated a best-in-class design for CBDC leveraging a digital economic union. This paper outlines the blueprint for a best-in-class CBDC design and discusses how a digital economic union and an international CBDC could complement and strengthen the international monetary system. Several sovereign states have collaborated with the DCMA on a Model Law for an international CBDC, or money commodity, and have provided draft legislation for such outlined in Appendix 1.
#Fintech#CryptoAssets#Stablecoins#CBDC#DCMA#UMU#IMF#DFC
·umu.cash·
Universal Monetary Unit White Paper
Potential Scenarios for Deciding to Issue a Digital Shekelל
Potential Scenarios for Deciding to Issue a Digital Shekelל
The Bank of Israel outlined potential scenarios for deciding to issue a digital shekel central bank digital currency (CBDC), although a decision has not yet been made as to whether the Bank intends on doing so. One scenario would be if  the United States or the European Union were to decide to issue CBDC, or a significant number of other developed economies. Other scenarios include a decline in the legitimate use of cash and its acceptance in transactions in Israel, significant penetration of stablecoins or other private means of payment that would be broadly used, and continued and growing concentration in key segments of the domestic payments system.
#Fintech#CBDC#Israel#DFC
·boi.org.il·
Potential Scenarios for Deciding to Issue a Digital Shekelל
LUK: A simple new crypto primitive in Android 12 and its implications on decentralized double-spend detection with applications to Digital Cash
LUK: A simple new crypto primitive in Android 12 and its implications on decentralized double-spend detection with applications to Digital Cash
"This post describes a simple but foundational new cryptographic primitive – called LimitedUseKey or LUK – introduced in Android 12 (aka Android S, to be released later this year). This crypto primitive has far reaching implications on secure detection of decentralized double-spend in mobile devices. Hopefully this primitive and its variants enable new applications that are decentralized, peer-to-peer, faster and work offline (without Internet connectivity). Examples include digital ticketing, coupons, payments systems and Central Bank Digital Currencies (CBDCs)."
#Fintech#Payments#Offline#CBDC#Google#DFC
·zkblogyogins.wordpress.com·
LUK: A simple new crypto primitive in Android 12 and its implications on decentralized double-spend detection with applications to Digital Cash
Digital Currency: Central Banks Get Started with Digital Money
Digital Currency: Central Banks Get Started with Digital Money
"In this article, we discuss the key benefits and potential of CBDCs, provide an overview of the current landscape of projects in early 2022 and present some of the challenges that CBDC deployments will face. One such challenge is the support of offline CBDC payments, and the article is complemented with a position paper from Thales describing how offline CBDC payments could be designed."
#Fintech#CBDC#Offline#Thales#DFC
·thalesgroup.com·
Digital Currency: Central Banks Get Started with Digital Money
Towards a Two-Tier Hierarchical Infrastructure: An Offline CBDC Payment System
Towards a Two-Tier Hierarchical Infrastructure: An Offline CBDC Payment System
"We propose an offline payment system (OPS) protocol for CBDC that allows a user to make digital payments to another user while both users are temporarily offline and unable to connect to payment intermediaries (or even the Internet). OPS can be used to instantly complete a transaction involving any form of digital currency over a point-to-point channel without communicating with any payment intermediary, achieving virtually unbounded throughput and real-time transaction latency. "
#Fintech#CBDC#Offline#VISA#DFC
·arxiv.org·
Towards a Two-Tier Hierarchical Infrastructure: An Offline CBDC Payment System
DigiTally
DigiTally
"DigiTally is an overlay payment scheme for use on mobile phones, whose goals are to extend mobile phone payments to areas with poor connectivity and reduce transaction fees. DigiTally enables two people to do a payment transaction by simply copying short strings of numbers between their phones. This doesn't need either smartphones or a network connection. Either phone can upload the transaction later, once it gets a network connection. A short-term goal was a pilot project to explore the factors that affect payment service uptake."
#Fintech#Payments#Offline#CBDC#DFC
·kbaqer.com·
DigiTally
U.S. House Committee Publishes Draft Stablecoin Bill
U.S. House Committee Publishes Draft Stablecoin Bill
The U.S. House Financial Services Committee (FSC) published a draft version of a stablecoin bill, with proposals including a two-year moratorium on stablecoins backed by other cryptocurrencies and a request to study a central bank digital currency (CBDC). The draft puts the Federal Reserve in charge of non-bank stablecoin issuers, whereas insured depository institution issuers would fall under the appropriate federal banking agency supervision. Among the factors for approval is the ability of the applicant to maintain reserves backing the stablecoins with U.S. dollars or Federal Reserve notes, Treasury bills with a maturity of 90 days or less, repurchase agreements with a maturity of seven days or less backed by Treasury bills with a maturity of 90 days or less, and central bank reserve deposits. A subcommittee will hold a hearing on stablecoins on Wednesday, featuring Dante Disparte from USDC issuer Circle; the Blockchain Association's Jake Chervinsky; Columbia Professor Austin Campbell and New York Department of Financial Services Superintendent Adrienne Harris. https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=408691
#Fintech#CryptoAssets#Stablecoins#Regulation#UnitedStates#CBDC#DFC
·coindesk.com·
U.S. House Committee Publishes Draft Stablecoin Bill
Is Fednow a CBDC?
Is Fednow a CBDC?
"Although FedNow is not a CBDC, that’s not to say there is no reason to object to it. Faster payments are needed in the United States, but FedNow is not the only option. FedNow was announced in 2019, but that was two years after the Clearing House (TCH) introduced the Real‐​Time Payments (RTP) Network. In fact, while not offering instant payments, even just expanding the operating hours of Fedwire and the National Settlement Service (NSS) to run 24x7x365 would have improved the U.S. financial system. Yet, the Federal Reserve seems to have chosen to ignore the simpler option and walk over the private sector. Both choices are grounds for fair and longstanding objections to FedNow."
#Fintech#CBDC#FedNow#FastPayments#UnitedStates#DFC
·cato.org·
Is Fednow a CBDC?
Payments stablecoins vs trading stablecoins
Payments stablecoins vs trading stablecoins
"Circle's Gordon Liao recently sketched out a new distinction between 'payment stablecoins' and 'trading stablecoins,' and then places Circle's stablecoin, USD Coin, in the former category, while confining competitors Tether, Dai, and Binance USD to the trading bucket. For the time being, I think that a payments stablecoin is a fable. Everyone wants to be in that category, but an actual payments stablecoin, one who's main use-case is remittances and POS payments, doesn't exist. Stablecoins remain primarily used for trading, gambling, and speculation."
#Fintech#CryptoAssets#Stablecoins#Tether#Circle#USDT#USDC#DFC
·jpkoning.blogspot.com·
Payments stablecoins vs trading stablecoins
The Digital Euro as a Monetary Anchor of the Financial System
The Digital Euro as a Monetary Anchor of the Financial System
The European Money abd Finance Forum (SUERF) published a paper that disputes the European Central Bank (ECB) two of the three "monetary anchor" digital euro issuance rationales. First, to be an anchor for commercial bank deposits, guaranteeing their convertibility into central bank money, the ECB would have to allow unlimited access to digital euros as a store of value, whereas the ECB envisages very limited CBDC holdings as a means of payment. Second, to be an anchor for maintaining the central bank’s control over the financial system, it is crucial that banks need central bank money as a means of payment and settlement. Thus, it is the holding of central bank money by banks, and not by non-banks, that is required as the ultimate monetary anchor for the financial system. Finally, the experience of several major central banks shows that the appropriate response to the declining use of cash in retail payments is not a CBDC, but the orchestration of competitive national retail payment systems.
#Fintech#CBDC#Eurozone#SUERF#DFC
·suerf.org·
The Digital Euro as a Monetary Anchor of the Financial System
IMF Approach to Central Bank Digital Currency Capacity Development
IMF Approach to Central Bank Digital Currency Capacity Development
The IMF reported that over 40 countries have approached with requests for CBDC capacity development assistance. Countries’ questions range from objectives and design choices to pilots and analysis of macro-financial implications. In the past two years, the IMF has started to engage with almost 30 countries. The IMF will also publish a Handbook that will be the basis for CBDC capacity development and help countries make well-informed decisions when taking the major step to design and issue their own CBDC. The Handbook chapters will provide mostly a framework for structuring CBDC exploration and cover five priority areas: (1) policy objectives and operational framework of CBDC; (2) foundational requirements and readiness to issue CBDC, such as legal considerations, cyber resilience, central bank governance, and regulation and supervision; (3) CBDC design processes, considerations, and choices; (4) project approaches and technology; and (5) potential macrofinancial impacts of CBDC. The initial wave of chapters, slated for publication around the 2023 Annual Meetings, will (1) provide a methodological framework for conducting CBDC exploration; (2) address the most common requests that IMF staff encounter in capacity development engagement; and (3) be based on relatively well-established knowledge and experiences. [
#Fintech#CBDC#IMF#DFC
·imf.org·
IMF Approach to Central Bank Digital Currency Capacity Development
Update on The Bahamas Sand Dollar
Update on The Bahamas Sand Dollar
The Central Bank of the Bahamas (CBOB) published an update on the uptake of its Sand Dollar central bank digital currency (CBDC). At present, only about 100,000 Sand Dollar wallets have been downloaded usage remains low when compared to the overall size of the domestic payments system. In order to bump up usage, a new version of the wallet will be introduced that will allow digital payment providers to offer fee-based merchant services from within the core Sand Dollar platform. Financial institutions will be able to customize the appearance of the app to display their individual brand identities, including logos and branding color preferences. Also the CBOB will ramp up promotional activities at civic and cultural events, and it has has committed to a giveaway of $1 million in Sand Dollars to early adopters through 2024.
#Fintech#CBDC#Bahamas#Caribbean#DFC
·centralbankbahamas.com·
Update on The Bahamas Sand Dollar
De La Rue slashes forecasts as banknote demand tumbles
De La Rue slashes forecasts as banknote demand tumbles
British banknote printer De La Rue has warned that its profits will miss full-year forecasts as demand for fresh cash fell to its weakest level in 20-years. It also said it was in discussions with its lenders to seek “an amendment to its banking covenants”. Last year, De La Rue found itself in a fight with its auditor after a “going concern warning” because of what EY said was a “severe but plausible downside scenario” where if the group lost key currency contracts, it would breach a debt covenant on the group’s credit facility.
#Fintech#Cash#DFC
·ft.com·
De La Rue slashes forecasts as banknote demand tumbles
Central Bank Digital Currency and Financial Inclusion
Central Bank Digital Currency and Financial Inclusion
The IMF published a paper that models the financial inclusion impact of introducing a retail CBDC in a developing country context.  It finds that CBDC issuance can increase bank deposits from the previously unbanked by incentivizing the opening of bank accounts for access to CBDC wallets (offsetting potential flows from deposits to CBDCs among those already banked). Second, data from CBDC usage allows for the building of credit to reduce credit-risk information asymmetry in lending. However, if non-bank payment system providers can distribute CBDC, fewer funds will flow into deposit accounts from the unbanked, but if CBDC data is shareable with banks, those without bank accounts can still build credit and access lower interest rate loans. This design is optimal for welfare if the gains from greater access to CBDC outweigh the contraction in lending.
#Fintech#CBDC#IMF#DFC
·imf.org·
Central Bank Digital Currency and Financial Inclusion
Jamaican government to incentivizing JAM-DEX CBDC uptake and usage
Jamaican government to incentivizing JAM-DEX CBDC uptake and usage
The Jamaican government launched two new incentive programs to increase the adoption of its JAM-DEX central bank digital currency (CBDC). The first is the “Small/Micro Merchant Incentive Program”, which will reward the first 10,000 merchants who sign up for the official JAM-DEX platform as of April 1, 2023, with a J$25,000 (about $164) deposit. The second is the “Wallet-holder Individual Loyalty Program”, which provides regular JAM-DEX users with loyalty points that may be redeemed for things such as 2% cashbacks on qualified purchases. https://jis.gov.jm/media/2023/03/HMFPS-BUDGET-PRESENTATION-Edited-Final-E-.pdf
#Fintech#CBDC#Jamaica#DFC
·ledgerinsights.com·
Jamaican government to incentivizing JAM-DEX CBDC uptake and usage
CBDCs can help central banks tame inflation
CBDCs can help central banks tame inflation
"CBDC architecture provides central bank economists and regulators with a wealth of near real-time information on the CBDC balances of financial institutions, along with metadata that could tag which industry each CBDC is spent in, allowing real-time CPI measuring and even triangulated inflation fighting, while maintaining robust privacy of all transactions for all users. A central bank doesn’t need to wait for institutions to report its CBDC assets and liabilities; instead, central bank staff can query the CBDC balances directly."
#Fintech#CBDC#Bitt#DFC
·omfif.org·
CBDCs can help central banks tame inflation
Stablecoins versus tokenised deposits: implications for the singleness of money
Stablecoins versus tokenised deposits: implications for the singleness of money
The Bank for International Settlements (BIS) published a paper that compares the key characteristics of stablecoins ("private tokenized monies that circulate as bearer instruments") and tokenized commercial bank deposits. It claims that stablecoins violate the "singleness of money" principle because their relative exchange values can and do depart from parity. The problem could be solved by the introduction of clearing houses to support par exchange for the stablecoins issued by its members. However, according to the paper, this is a step backwards because the problem has already been solved by the existing two-tier monetary system. Also, tokenized deposit functionality can be expanded to allow for programmable ledgers, contingent execution and composability of transactions.
#Fintech#CryptoAssets#Stablecoins#Tokenization#BIS#DFC
·bis.org·
Stablecoins versus tokenised deposits: implications for the singleness of money
Central Bank of Montenegro to Develop a Digital Currency Strategy and Pilot
Central Bank of Montenegro to Develop a Digital Currency Strategy and Pilot
The Central Bank of Montenegro (CBCG) is working with Ripple to develop a strategy and pilot program to launch a national stablecoin, in a follow-up to Prime Minister Dritan Abazovic's related Tweet in January. The CBCG will work with Montenegro's government and academia to create a practical digital currency or secure currency solution to test blockchain functionality and potential. Montenegro uses the EUR, despite not being a member of the Eurozone, although it is a candidate country for European Union (EU) membership.
#Fintech#CryptoAssets#Stablecoins#CBDC#Ripple#Montenegro#DFC
·cbcg.me·
Central Bank of Montenegro to Develop a Digital Currency Strategy and Pilot
The Digital Currency Monetary Authority (DCMA) Launches an International (CBDC)
The Digital Currency Monetary Authority (DCMA) Launches an International (CBDC)
The Digital Currency Monetary Authority (DCMA) announced their official launch of an international central bank digital currency (CBDC) at the 2023 International Monetary Fund (IMF) Spring Meetings. The press release implies that their Universal Monetary Unit (UMU) algorithmic stablecoin has the IMF's blessing, including quoting IMF Financial Counselor Tobias Adrian from a November 2022 speech that implies nothing about DCMA engagement. Also,  the following quote from the DCMA's legal counsel appears designed to mislead:  "although the IMF has not officially endorsed UMU, in reviewing the DCMA's whitepaper and in weekly team discussions, the IMF has yet to state any objections to UMU's FX premium rates and its monetary sovereignty approach."
#Fintech#CryptoAssets#Stablecoins#CBDC#IMF#DCMA#UMU#DFC
·prnewswire.com·
The Digital Currency Monetary Authority (DCMA) Launches an International (CBDC)
Ex-Gemini Officials to Offer 5% on Treasuries-Backed Tokens to Bridge DeFi Gap
Ex-Gemini Officials to Offer 5% on Treasuries-Backed Tokens to Bridge DeFi Gap
"Former senior officials at digital-asset exchange Gemini are rolling out a token backed by US Treasury Bills with around 5% yield in response to a gulf in returns between traditional finance and decentralized crypto lending. OpenEden, a DeFi platform, is offering the token known as TBILL against stablecoins, which will in turn be invested in short-term US Treasury Bills."
#Fintech#CryptoAssets#Stablecoins#Tokenization#DFC
·bloomberg.com·
Ex-Gemini Officials to Offer 5% on Treasuries-Backed Tokens to Bridge DeFi Gap
So much for Wyoming blockchain regulatory capture — the Fed blocks Custodia Bank
So much for Wyoming blockchain regulatory capture — the Fed blocks Custodia Bank
Caitlin Long had high hopes of bringing crypto into the mainstream financial system. Long’s Custodia Bank in Cheyenne, Wyoming, a state-charted special purpose depository institution, or SPDI, was spearheading those dreams for all of cryptocurrency. Those dreams crashed into the concrete bollard of reality on January 27, 2023, when the Federal Reserve Board denied Custodia’s application to be a Federal Reserve member bank, and the Federal Reserve Bank of Kansas City denied its application for a master account. The Board’s full 86-page order, made public on March 25, details how Custodia failed to address “the heightened risks associated with crypto activities, including its ability to mitigate money laundering and terrorism financing risks.” (The Kansas City Fed’s denial letter was not made public.)
#Fintech#CryptoAssets#Stablecoins#Custodia#Regulation#UnitedStates#DFC
·davidgerard.co.uk·
So much for Wyoming blockchain regulatory capture — the Fed blocks Custodia Bank
BIS research suggests optimal level of CBDC is 40% of GDP
BIS research suggests optimal level of CBDC is 40% of GDP
The Bank for International Settlements (BIS) published a paper on the potential impact of introducing retail central bank digital currency (CBDC). It argues for a fairly aggressive issuance policy with an optimal outstanding level equal to about 40% of annual gross domestic product (GDP). In the paper's theoretical model, GDP increases by more than 6%, with only a 6% drop in commercial bank deposits, albeit based on restrictive assumptions, like limited on-demand convertibility of bank deposits into CBDC, and issuance only permitted against government securities (and not reserves). Many of the macroeconomic benefits come from the fiscal budgetary space created by replacing higher-interest government debt by CBDC remunerated at an interest rate below that on central bank reserves. https://www.bis.org/publ/work1086.htm
#Fintech#CBDC#BIS#DFC
·ledgerinsights.com·
BIS research suggests optimal level of CBDC is 40% of GDP
FedNow is not a central bank digital currency
FedNow is not a central bank digital currency
The FedNow is an instant payments service provided by the U.S. Fed, launching in July 2023. It will be available to U.S. depository institutions, such as banks and credit unions, and will enable individuals and businesses to send payments through their depository institution accounts 24/7, so that the receiver of a can use the funds almost instantly.  FedNow is like other Fed payments services, such as Fedwire and FedACH. To be absolutely clear, FedNow is neither a form of currency nor a step toward eliminating any form of payment, including cash.
#Fintech#CBDC#FedNow#FastPayments#UnitedStates#DFC
·federalreserve.gov·
FedNow is not a central bank digital currency
How can the public access digital central bank money?
How can the public access digital central bank money?
Sweden's Riksbank published an update on its technical work aimed at examining how an e-krona could work if a decision is taken in the future to issue central bank digital currency (CBDC). The focus during Phase 3 has been to examine how the Riksbank could interact with other actors in the payment market to give the general public access to, and the possibility to pay with, an e-krona, how conditional payments can be made and whether a digital central bank currency can simplify cross-border payments.
#Fintech#CBDC#Europe#Sweden#DFC
·riksbank.se·
How can the public access digital central bank money?
The Digital Euro Conference 2023: A Recap
The Digital Euro Conference 2023: A Recap
The Digital Euro Association (DEA) published a summary of the key takeaways from its Digital Euro Conference held on March 31, 2023, that brought together experts, policymakers, and industry leaders in a hybrid format. Both on-site and remote participants engaged in insightful discussions, presentations, and panel sessions centered around central bank digital currencies (CBDCs), stablecoins, and tokenized commercial bank deposits.
#Fintech#CBDC#Europe#DFC
·blog.digital-euro-association.de·
The Digital Euro Conference 2023: A Recap
India Targeting One Million CBDC Users in Three Months, Prioritizing Offline Transfers: Sources
India Targeting One Million CBDC Users in Three Months, Prioritizing Offline Transfers: Sources
"The RBI is hoping to conduct offline transactions by testing the use of wearables, cards like debit and credit, bluetooth technology, and a smartphone. Another key concern the RBI is looking to address is the risk of double spending. More than 50 proposals have been submitted to the RBI on the closing date of March 24, 2023 to solve the problem of offline transactions, one source said."
#Fintech#Payments#CBDC#Offline#DFC
·coindesk.com·
India Targeting One Million CBDC Users in Three Months, Prioritizing Offline Transfers: Sources
Payment versus trading stablecoins
Payment versus trading stablecoins
An article by Circle Chief Economist Gordon Liao distinguishes stablecoins’ use in trading versus payment activities and their impact on financial stability. Payment stablecoins like Circle's USDC have lower speculation exposure than trading stablecoins like Tether's USDT, MakerDAO's DAI, and Binance's BUSD. Two measures are presented as evidence; the total crypto trading volume facilitated by the stablecoin in question versus the amount of it in circulation, and the correlation between the change in stablecoin circulation and crypto-asset returns. Dai shows the highest correlation with crypto-asset returns because it is collateralized with crypto-assets, so a decrease in the asset collateral’s value can prompt the forced redemption of the stablecoin.
#Fintech#CryptoAssets#Stablecoins#Circle#USDC#Tether#Binance#BUSD#MakerDAO#DAI#DFC
·cepr.org·
Payment versus trading stablecoins