DFC

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A Comparative Study of the CBDC Design Frameworks of the Ghanaian and Nigerian Central Banks
A Comparative Study of the CBDC Design Frameworks of the Ghanaian and Nigerian Central Banks
"This paper discusses critical considerations in the design of central bank digital currency (CBDC) in West Africa through a comparative case study of Ghana’s (eCedi) and Nigeria’s (eNaira) design frameworks. This paper analyses CBDC design options framed through context (digital payment landscape and CBDC objectives), technical aspects (design principles, architecture, risks), use cases, and deployment plans. This study conducted a thematic analysis of official CBDC design documents to identify similarities, differences, and patterns. The results indicate more similarities between the eCedi and eNaira designs than differences. "
#Fintech#CBDC#Africa#DFC
·mdpi.com·
A Comparative Study of the CBDC Design Frameworks of the Ghanaian and Nigerian Central Banks
This is What a Crumbling Cash Infrastructure Looks Like
This is What a Crumbling Cash Infrastructure Looks Like
The UK government and Bank of England are taking steps to intervene to ensure that cash remains a payment option in the future. The key factor to their success is access to cash withdrawal facilities (be it an accessible ATM or a retailer offering cashback), which in turn relies on those outlets having access to cash deposit facilities. Take away the branches and the ATMs and that access disappears with it. A pay-to-use ATM in a shop that is closed when you need it, or a mobile bank that only visits once a week and is hard to reach anyway, doesn’t cut it.
#Fintech#CBDC#Cash#Offline#DFC
·currency-news.com·
This is What a Crumbling Cash Infrastructure Looks Like
Jamaica’s JAM-DEX CBDC comes with an instruction manual
Jamaica’s JAM-DEX CBDC comes with an instruction manual
Richard Turrin alerted me to the Bank of Jamaica (BOJ) JAM-DEX frequently asked questions (FAQ), and provides a nice summary here. Interestingly, the BOJ is not imposing any holding or transaction limits on the use of the central bank digital currency (CBDC). Instead, it is relying on banks to use their own risk management assessment to determine limits. For now, the Lynk wallet limits cashing in to J$50,000 (about $325) daily from a bank account, and J$50,000 monthly from a debit/credit card. For cashing out, limit is J$100,000 daily for a bank account. For transferring to another Lynk user, the limit is J$100,000 daily. https://boj.org.jm/core-functions/currency/cbdc/cbdc-faqs/
#Fintech#CBDC#Caribbean#Jamaica#DFC
·linkedin.com·
Jamaica’s JAM-DEX CBDC comes with an instruction manual
CBDC an opportunity for financial inclusion in developing and emerging economies?
CBDC an opportunity for financial inclusion in developing and emerging economies?
The Alliance for Financial Inclusion (AFI) published a report that evaluates the extent to which retail central bank digital currency (CBDC) can advance financial inclusion in emerging market and developing economy (EMDE) countries. It concludes that, retail CBDC can be designed to alleviate identity gaps, and mobile phone and digital access divides through its unique ability to generate digital identity proxies and enable offline capabilities while being device agnostic. However, CBDC will not automatically advance financial inclusion, and if not designed appropriately, could reinforce existing barriers. Also, in many EMDE jurisdictions, they are likely to be limited by poor electricity coverage, access to (and affordability of) CBDC-enabled devices and limited cash-in and cash-out infrastructure. Finally, the report concludes that CBDC may not always be the right tool for addressing financial inclusion in different EMDE country contexts relative to other digital payment interventions. The unique feature of CBDC, which makes it distinct from other digital payments instruments, is that is issued by the central bank. But this feature does not necessarily make CBDC a better tool.
#Fintech#CBDC#FinancialInclusion#DFC
·afi-global.org·
CBDC an opportunity for financial inclusion in developing and emerging economies?
Norges Bank CBDC Sandbox Code Now Public
Norges Bank CBDC Sandbox Code Now Public
Norges Bank announced that CBDC technology partners, Nahmii AS, is making the source code for the central bank's CBDC sandbox publicly available. Nahmii's work is focusing on defining and commissioning a sandbox production environment with open sourced services to allow for the testing of basic token management use cases, including minting, burning and transferring ERC-20 tokens. (Nahmii is an Ethereum layer-2 scaling protocol.) https://twitter.com/NorgesBank/status/1568176756770619392
#Fintech#CBDC#Europe#Norway#DFC
·blog.nahmii.io·
Norges Bank CBDC Sandbox Code Now Public
E-Yuan Gets New Prepayment Tool to Stop Vendors Running Off With Funds
E-Yuan Gets New Prepayment Tool to Stop Vendors Running Off With Funds
Intended to prevent unscrupulous merchants from embezzling prepayments made by buyers, a new digital yuan management tool has been unveiled. Merchants can apply to execute the smart contract when they complete services that consumers pay for, and the contract will transfer the prepaid funds to the merchants after verifying that all conditions have been met. This technically rules out the possibility of embezzling the prepayments via artificial operations.
#Fintech#CBDC#China#SmartContracts#DFC
·yicaiglobal.com·
E-Yuan Gets New Prepayment Tool to Stop Vendors Running Off With Funds
PBOC Releases Digital CNY Smart Contract Prepaid Fund Management Product
PBOC Releases Digital CNY Smart Contract Prepaid Fund Management Product
The People's Bank of China (PBOC) has reportedly launched an eCNY smart contract prepaid fund management product - "Yuanguanjia". It aims to provide users with prepaid consumption service scenarios by deploying smart contracts on digital RMB wallets. This stops merchants from running away with prepaid consumption and protects consumers' rights and interests.
#Fintech#CBDC#SmartContracts#China#DFC
·blockchain.news·
PBOC Releases Digital CNY Smart Contract Prepaid Fund Management Product
Binance Will Change Stablecoin Policy – What Should Investors Know?
Binance Will Change Stablecoin Policy – What Should Investors Know?
Binance will stop supporting trading in spot pairs that include these stablecoins, but will allow users to withdraw funds in the form of these stablecoins. In other words, the trading of these stablecoins will no longer be supported, but Binance users will be able to withdraw amounts denominated in these stablecoins.
#Fintech#CryptoAssets#Stablecoins#Binance#BUSD#USDC#DFC
·forbes.com·
Binance Will Change Stablecoin Policy – What Should Investors Know?
Bullet Train: Cross-Border Payments
Bullet Train: Cross-Border Payments
"The IMF will soon publish two papers on these topics with coauthors Tobias Adrian, Tommaso Mancini- Griffloli, Dong He and Federico Grinberg of the IMF; Rod Garratt of the University of California, Santa Barbara; and Robert Townsend and Nicolas Xuan-Yi Zhang of the Massachusetts Institute of Technology. The papers will lay out an initial blueprint for such platforms in the hope of stimulating further discussion on these important topics, which are likely to shape the future of cross-border payments. Much remains to be explored, debated, and eventually done. The effort is certainly worth it, if anything to avoid embarrassing questions about what happens today behind the cloak of bilateral handshakes."
#Fintech#CryptoAssets#Stablecoins#CBDC#CrossBorder#Payments#DFC
·imf.org·
Bullet Train: Cross-Border Payments
Exiles Put Crypto, Fed Funds at Center of Myanmar Finance Plan
Exiles Put Crypto, Fed Funds at Center of Myanmar Finance Plan
Myanmar exiles ousted in a 2021 coup are pressing the US Federal Reserve to endorse their bid to use $1 billion in funds frozen by the US to back a digital currency and a plan to establish a new central bank. If the exiles can get US support, they would then seek to establish a new central bank that could issue the digital currency to help support the opposition’s “revolutionary efforts."
#Fintech#CryptoAssets#CBDC#GovCoins#DFC
·bloomberg.com·
Exiles Put Crypto, Fed Funds at Center of Myanmar Finance Plan
Russia's Finance Ministry is working on stablecoin platforms to avoid cross-border dollar settlement
Russia's Finance Ministry is working on stablecoin platforms to avoid cross-border dollar settlement
Russia's finance ministry is reportedly looking to stablecoins to avoid international payment rails denominated in the U.S. dollar and euro. "The stablecoins can be tied to some generally accepted instrument like, for example, gold, whose value is understood and appreciable for all parties... It will require additional regulation, and the ministry is only considering approaches to it, there are no ready-made solutions."
#Fintech#CryptoAssets#Stablecoins#Russia#CrossBorder#CBDC#DFC
·tass.ru·
Russia's Finance Ministry is working on stablecoin platforms to avoid cross-border dollar settlement
Binance Stablecoin Switch May Be Crypto Land Grab
Binance Stablecoin Switch May Be Crypto Land Grab
"At face value, it’s a vote of confidence for tokens like USDC and USDP, with Binance effectively stating that the value of those tokens are reliable enough to be allowed permanent 1-to-1 redemption with its own BUSD across withdrawals and deposits. Tether’s USDT, the largest stablecoin by market value, was notably left out of the party."
#Fintech#CryptoAssets#Stablecoins#Binance#Circle#USDC#BUSD#DFC
·bloomberg.com·
Binance Stablecoin Switch May Be Crypto Land Grab
Binance conversions will lead to more USDC flowing into the exchange: Circle CEO
Binance conversions will lead to more USDC flowing into the exchange: Circle CEO
"Binance's move to automatically convert USDC and two other stablecoins may lead to more USDC flowing into the exchange, according to the CEO of Circle, which issues the coin. "Binance is trying to consolidate dollar liquidity w cash equivalent stables. That’s good for liquidity and market depth," said Circle CEO Jeremy Allaire on Twitter."
#Fintech#CryptoAssets#Stablecoins#Binance#Circle#USDC#BUSD#DFC
·theblock.co·
Binance conversions will lead to more USDC flowing into the exchange: Circle CEO
Binance to Stop Supporting USD Coin (USDC) in Favor of Binance USD (BUSD)
Binance to Stop Supporting USD Coin (USDC) in Favor of Binance USD (BUSD)
Binance effectively banished USD Coin (USDC), the second-biggest stablecoin, from trading at its cryptocurrency exchange in favor of its own competing product. On Sept. 29, customers' holdings of USDC will be converted to Binance USD (BUSD). The same will happen with two smaller stablecoins: Pax Dollar (USDP) and TrueUSD (TUSD).  The action effectively removes USDC as a tradable asset on one of the most prominent perches in crypto, and creates a headache for Circle Internet Financial, USDC's issuer, as the company mulls an IPO.
#Fintech#CryptoAssets#Stablecoins#Binance#Circle#USDC#BUSD#DFC
·coindesk.com·
Binance to Stop Supporting USD Coin (USDC) in Favor of Binance USD (BUSD)
RBI in talks with 4 banks, fintechs for digital currency launch this financial year
RBI in talks with 4 banks, fintechs for digital currency launch this financial year
The Reserve Bank of India (RBI) is reportedly in talks with fintech companies and state-controlled banks about a trial run of a central bank digital currency (CBDC) with a possible rollout by the end of the fiscal year ending March 31, 2023. The list of fintechs that the RBI is consulting include US-based FIS, plus four state-run banks to run a pilot CBDC project (State Bank of India, Punjab National Bank, Union Bank of India and Bank of Baroda).
#Fintech#CBDC#Asia#DFC
·moneycontrol.com·
RBI in talks with 4 banks, fintechs for digital currency launch this financial year
"Real SDR Currency Board" by Warren Coats
"Real SDR Currency Board" by Warren Coats
"An enhanced special drawing right (SDR), valued by a basket of goods, would provide the global currency and reserve asset the global economy craves. This paper proposes linking the value of the International Monetary Fund’s SDR and national currencies that fix their exchange rates to the SDR to a representative basket of widely traded goods. The new “real SDR” would be issued and redeemed passively according to “Currency Board” rules in exchange for financial assets with the same market value as the basket. National currencies and/or an international reserve currency with the same value (i.e. fixed to a common unit of account) would lower the cost of trading by reducing transaction and information costs and exchange rate risk and would thus increase world trade and improve the efficiency of international resource allocation. A system anchored to a goods basket would not have the shortcomings that afflict the gold standard-gold's fluctuating relative value. The indirect redeemability rule, issuing and redeeming real SDRs for financial assets of equivalent value would avoid the shortcoming that makes multi-good commodity standards very costly—¬the need to maintain large reserves of all of the commodities in the basket. The innovative idea of indirect redeemability, discussed by Yeager, Greenfield, and others, keeps the quantity of SDRs equal to the amount demanded when its value is given by the valuation basket, without the need for the monetary authority to warehouse the goods in the basket."
#Fintech#SDR#CBDC#IMF#DFC
·works.bepress.com·
"Real SDR Currency Board" by Warren Coats
Moneyness: Some thoughts about the resilience of decentralized stablecoins
Moneyness: Some thoughts about the resilience of decentralized stablecoins
"If a decentralized blockchain protocol is worried about being shut down by the authorities, how can it defend itself? A recent discussion surrounding MakerDAO explores this question. MakerDAO (or just Maker) issues the Dai stablecoin, of which there are around $7 billion in circulation. Rune Christensen, the founder of Maker, sees a precedent for a clampdown on Maker in the US Treasury's recent sanctions on Tornado Cash, a mixer. He worries that the authorities may try to shut down Maker by seizing its assets, specifically its real-world assets, or "RWA." To counter this threat, Christensen suggests that Maker turtle into what he calls phoenix stance:"
#Stablecoins#DAI#MakerDAO#Derivatives#Futures#Fintech#DFC
·jpkoning.blogspot.com·
Moneyness: Some thoughts about the resilience of decentralized stablecoins
Central Bank Digital Currency - nChain
Central Bank Digital Currency - nChain
nChain works with central banks to explore the drivers behind Central Bank Digital Currency (CBDC) and the role blockchain plays in delivering an optimal design. Our approach to CDBC delivers the purest form of digital cash and, by using a highly scalable public ledger, we can offer new economic tools to support central banks even further.
#Fintech#CBDC#nChain#DFC
·nchain.com·
Central Bank Digital Currency - nChain
Central Bank Of Nigeria Announces ENaira's Integration With NIBSS
Central Bank Of Nigeria Announces ENaira's Integration With NIBSS
The Nigerian Central Bank (CBN) has declared the eNaira to be completely implemented into the Nigeria Inter-Bank Settlement System (NIBSS) Customers can now transfer money from their eNaira wallet to any Nigerian bank account of their choice thanks to the integration with NIBBS Instant Payments (NIP), the country's main payment system. NIP is a virtual real-time Inter-Bank payment method based on account numbers. https://twitter.com/cenbank/status/1564226139761131523
#Fintech#CBDC#Africa#DFC
·blockbuild.africa·
Central Bank Of Nigeria Announces ENaira's Integration With NIBSS
A Conversation On CBDCs, With Jamiel Sheikh, Of CBDC Think Tank
A Conversation On CBDCs, With Jamiel Sheikh, Of CBDC Think Tank
Forbes published an interview focused on central bank digital currency (CBDC) with Jamiel Sheikh , CEO of the CBDC Think Tank (CBDCTT). The CBDCTT delivers education, the CBDC Summit in Washington D.C in collaboration with the IMF,  and is expanding into advisory with a number of key clients and central banks.  A key interview takeaway for me was the stressing of the importance of central banks building internal CBDC competencies instead of relying on vendors.
#Fintech#CBDC#CBDCTT#DFC
·forbes.com·
A Conversation On CBDCs, With Jamiel Sheikh, Of CBDC Think Tank
CBDC Services — Chavanette Advisors
CBDC Services — Chavanette Advisors
"Chavanette has teamed up with GFT to provide banks with a full service offering covering CBDC preparedness and integration. Chavanette will support you at every stage. We take inputs from central banks and upstream CBDC service providers, so we can advise our clients on how to integrate the latest developments. Chavanette and GFT can manage your CBDC integration projects and provide full support during and after launch."
#Fintech#CBDC#DFC
·chavanette.com·
CBDC Services — Chavanette Advisors
G.R.E.E.N CBDC Powered By EMTECH
G.R.E.E.N CBDC Powered By EMTECH
EMTECH announced today the G.R.E.E.N. CBDC Framework to assist central banks in unlocking unprecedented value when deploying a Central Bank Digital Currency (CBDC).
#Fintech#CBDC#Emtech#DFC
·greencbdc.com·
G.R.E.E.N CBDC Powered By EMTECH
The Digital Dollar Project Launches CBDC Technical Sandbox Program
The Digital Dollar Project Launches CBDC Technical Sandbox Program
The Digital Dollar Project (DPP) announced today the launch of its central bank digital currency (CBDC) Technical Sandbox Program. It will serve as a collaborative space for the DDP participants and financial service providers, offering a neutral environment for the evaluation of technological, business, and policy approaches to CBDCs. Program participants will examine real-world technology, explore potential implications to business strategies and operations, and experiment to uncover possible use-case specific solutions. It is is slated to begin in early October with the inaugural cohort focused on cross-border payments.
#Fintech#CBDC#UnitedStates#DFC
·prnewswire.com·
The Digital Dollar Project Launches CBDC Technical Sandbox Program
Central Bank Digital Currency Competition and the Impossible Trinity
Central Bank Digital Currency Competition and the Impossible Trinity
"In the two-country model in Benigno, Schilling & Uhlig (2022), the usage of a privately-issued crypto-asset as a global means of payment leads to the enforced synchronization of nominal interest rates, and hence to a loss of monetary policy autonomy. This paper shows that the same result obtains in a world in which central banks issue digital currencies (CBDC) to be used abroad. In that case, shock transmission is symmetric, whereas it is asymmetric if only one country issues international CBDC or crypto-assets are tied to one currency (stablecoin)."
#Fintech#CBDC#Stablecoins#MonetaryPolicy#DFC
·papers.ssrn.com·
Central Bank Digital Currency Competition and the Impossible Trinity
Banco Central do Brasil publishes list of projects selected for LIFT 2022
Banco Central do Brasil publishes list of projects selected for LIFT 2022
The Banco Central do Brasil (BCB) announced the short list of eight projects selected in the 2022 Laboratory of Financial and Technological (LIFT). One of them is a proposal to convert a stablecoin on the Celo blockchain into Real Digital, studying the interoperability between the public blockchain that runs on the EVM (Ethereum Virtual Machine) and the central bank digital currency (CBDC), in addition to the possible interoperability with Pix.
#Fintech#CBDC#LATAM#DFC
·bcb.gov.br·
Banco Central do Brasil publishes list of projects selected for LIFT 2022
CBN approves rewards scheme for merchants, users of eNaira
CBN approves rewards scheme for merchants, users of eNaira
The Central Bank of Nigeria (CBN) has reportedly approved a reward scheme for users of the eNaira, including merchants. This includes providing merchants with the required promotional materials, subsidising the current Merchant Service Charge by 50% and activation of a nationwide sensitization which early business adopters of eNaira can leverage on to market its wider adoption.
#Fintech#CBDC#Africa#DFC
·businessday.ng·
CBN approves rewards scheme for merchants, users of eNaira