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Barclays CBDC Hackathon 2022
Barclays CBDC Hackathon 2022
Barclays will host the "CBDC Hackathon 2022" on September 27 and 28, 2022. It will consist of a series of coding challenges that will simulate the use of central bank digital currency (CDBC) and commercial bank money. Teams of four will develop coding solutions to multiple challenges including connecting to Barclays simulation of central and commercial bank application programming interfaces (APIs). The tasks will be drawn from the Bank of England’s CBDC platform model.
#Fintech#CBDC#HackaThon#UnitedKingdom#DFC
·creativeservices.barclays·
Barclays CBDC Hackathon 2022
RBI working on phased implementation of digital currency
RBI working on phased implementation of digital currency
Reserve Bank of India (RBI) Executive Director Ajay Kumar reportedly said that the central bank is working on a phased implementation of both retail and wholesale CBDC. He also said that the necessary amendment to the relevant section of the RBI Act 1934 had been made enabling the RBI to conduct pilot and subsequent issuance of CBDC.
#Fintech#CBDC#Asia#wCBDC#DFC
·theprint.in·
RBI working on phased implementation of digital currency
Digital Rupiah Currency: Indonesia Plans Wholesale CBDC to Improve Transfers
Digital Rupiah Currency: Indonesia Plans Wholesale CBDC to Improve Transfers
Bank Indonesia Governor Perry Warjiyo reportedly said that the central bank will release the conceptual design of digital rupiah by the end of 2022. The central bank will distribute the CBDC to large banks and payment service companies to sell to smaller banks for various retail transactions. It is also considering ways to ensure it would be exchangeable across borders.
#Fintech#CBDC#Asia#wCBDC#DFC
·bloomberg.com·
Digital Rupiah Currency: Indonesia Plans Wholesale CBDC to Improve Transfers
IMF wants banks and payment service providers shielded in CBK digital shilling plan
IMF wants banks and payment service providers shielded in CBK digital shilling plan
The IMF published feedback on the Central Bank of Kenya central bank digital currency (CBDC) discussion paper published in February 2022. The IMF recommended that the paper emphasize that CBDC will “do no harm” to existing private-sector digital payment solutions. A poorly designed CBDC risks taking away customers of banks and other digital finance providers, increasing the cost of financing for banks, and depriving banks of valuable information they obtain through establishing customer relations.
#Fintech#CBDC#IMF#Africa#DFC
·imf.org·
IMF wants banks and payment service providers shielded in CBK digital shilling plan
Cash remains king in Germany
Cash remains king in Germany
Recently, Deutsche Bundesbank published a study on the payment behavior and habits in Germany (for 2021). The study is very, very detailed and provides data for all kinds of questions around payments. The main takeaway is that cash is still king in Germany
#Fintech#CBDC#Cash#Eurozone#DFC
·linkedin.com·
Cash remains king in Germany
Lenders Are Thwarting Digital Currency’s Adoption in Nigeria
Lenders Are Thwarting Digital Currency’s Adoption in Nigeria
Nigerian lenders are reportedly impeding the use of the nation’s central bank digital currency (CBDC) because they are concerned about losing revenue from traditional banking services, according to central bank Governor Godwin Emefiele. Only about 700,000 customers have created an e-naira wallets since its introduction in October last year. E-naira-based transactions have also failed to pick up. Currently, the e-naira wallet is available to only bank customers, but the central bank is close to concluding tests with MTN Group's Nigeria unit to provide a channel to enable Nigerians without bank accounts to open e-naira wallets.
#Fintech#CBDC#Africa#DFC
·bloomberg.com·
Lenders Are Thwarting Digital Currency’s Adoption in Nigeria
The Macroeconomic Impact of Cryptocurrency and Stablecoins
The Macroeconomic Impact of Cryptocurrency and Stablecoins
In the absence of high-certainty macroeconomic models that project the macroeconomic impact of cryptocurrency and stablecoins, the World Economic Forum (WEF) has published a white paper that seeks to forecast the potential effects based on qualitative assessments from global macroeconomists and credible literature in this space. Based on projected macroeconomic outcomes, the majority of economists interviewed predict that allowing cryptocurrency to play a regulated role in the economy will bring the highest macroeconomic net benefit to society. This is contingent on the responsible design and enforcement of regulation. A separate workstream within the WEF’s Digital Currency Governance Consortium (DCGC) will deliver more detail regarding regulatory best practices at a later date. See also: https://cepr.org/voxeu/columns/macroeconomic-effects-introducing-central-bank-digital-currency
#Fintech#CryptoAssets#Stablecoins#Regulation#WEF#DFC
·weforum.org·
The Macroeconomic Impact of Cryptocurrency and Stablecoins
Whatever The Public Think About Digital Currency, It Is Coming
Whatever The Public Think About Digital Currency, It Is Coming
It will not be enough for central banks to develop an online digital currency transaction network while treating cash as the offline back-up. It should be offline digital cash that is the backup that continues to work when there is no internet, no mobile network and no electricity network. This is one of the aspects of central bank digital currency (CBDC) design that most interests me. Now, obviously, there must be limits on the amount that can be stored in wallets or transferred between them (for all sorts of reasons, ranging from security to consumer protection) but it is entirely feasible to implement schemes that allow for offline device-to-device transfer so that people can still buy a cup of tea when the internet is down or still buy food at the supermarket when the electricity is out. This is the smart way forward for digital currency.
#Fintech#CBDC#Offline#DFC
·forbes.com·
Whatever The Public Think About Digital Currency, It Is Coming
Stablecoins’ role in crypto and beyond: functions, risks and policy
Stablecoins’ role in crypto and beyond: functions, risks and policy
This European Central Bank (ECB) article analyses the role played by stablecoins for everyday payments. Transaction speeds differ by blockchain but are slow for stablecoins issued on the predominant blockchain. As an example, during testing for a central bank digital currency, the Federal Reserve Bank of Boston showed that a non-blockchain payment technology can perform ten times more transactions per second than a high-performance blockchain technology. Transaction costs of stablecoins vary depending on a number of factors, such as the complexity of a transaction or the congestion of the network, leading to higher fees. Analysis of stablecoin transaction fees by Mizrach (2022) shows that, for a large portion of stablecoins, the transaction costs are higher than those of ATM transactions or the average costs of Visa or Mastercard schemes in Europe.
#Fintech#CryptoAssets#Stablecoins#Regulation#Eurozone#DFC
·ecb.europa.eu·
Stablecoins’ role in crypto and beyond: functions, risks and policy
Consumer attitudes to CBDC: Considerations for policy-makers
Consumer attitudes to CBDC: Considerations for policy-makers
A survey conducted by Ipsos MORI on behalf of OMFIF and G+D which provides insights into consumers’ attitudes towards new digital forms of payments, including CBDC, in four countries: Germany, Indonesia, Nigeria and the US. The survey findings reveal a sharp difference in attitudes towards CBDCs between consumers in developed and developing countries. In Nigeria – where a pilot CBDC project was launched in October – 91% of respondents say they are likely to use CBDCs, with 60% of consumers saying so in Indonesia. However, these figures fall to just 24% in the US and 14% in Germany. This suggests CBDCs could offer a ‘leapfrog’ moment in payments in emerging markets, where systems are less developed, compared to countries such as the US and Germany, where consumers have many established payment options already.
#Fintech#CBDC#G+D#OMFIF#DFC
·omfif.org·
Consumer attitudes to CBDC: Considerations for policy-makers
The impact of a Digital Rupee on liquidity management and monetary policy transmission in Mauritius
The impact of a Digital Rupee on liquidity management and monetary policy transmission in Mauritius

The Bank of Mauritius is considering CBDC issuance, and as part of its recent Article IV consultation, the IMF published a paper that assesses the potential impact on liquidity management and monetary policy transmission of various designs of Mauritian Digital Rupee. It finds that issuing a CBDC, especially when remunerated, may not bring clear advantages for liquidity management and may lead to complications for the transmission of the policy rate to market rates. A simpler option of non-interest-bearing retail Digital Rupee could be a safer option as it would lead to a lower risk of interference with policy transmission.

#Fintech#CBDC#Africa#DFC
·imf.org·
The impact of a Digital Rupee on liquidity management and monetary policy transmission in Mauritius
Côte d’Ivoire exploring issuing CBDC
Côte d’Ivoire exploring issuing CBDC
Côte d’Ivoire authorities are "cautiously exploring the benefits of a CBDC and the IMF said it stands ready to offer capacity development support. [Read more] However, it's unclear how that would work because Côte d’Ivoire doesn't have it's own central bank. It's part of the West African Monetary Union whose currency is the CFA Franc, issued by the Banque Centrale des États de l'Afrique de l'Ouest.
#Fintech#CBDC#Africa#DFC
·imf.org·
Côte d’Ivoire exploring issuing CBDC
Haitian central bank has requested IMF CBDC technical assistance
Haitian central bank has requested IMF CBDC technical assistance
The Banque de la République d'Haïti has requested technical assistance from the IMF to help address the risks associated with CBDC deployment. Support has been received from specialized foreign firms and collaboration has been initiated with countries that have already launched a CBDC, particularly in the Caribbean.
#Fintech#CBDC#Caribbean#Haiti#DFC
·imf.org·
Haitian central bank has requested IMF CBDC technical assistance
Issuance of a digital currency of the Central Bank in Chile
Issuance of a digital currency of the Central Bank in Chile
The Central Bank of Chile has opened an online survey on its CBDC project. The poll is aimed at several audiences, including the financial sector and academics; specialists in payments and technological services; and the general public. [Read more] This initiative is expected to deepen the evaluation process started in May with the publication of a first report on CBDC issuance. A second report will be published at the end of this year or beginning of 2023.
#Fintech#CBDC#SouthAmerica#DFC#Chile
·bcentral.cl·
Issuance of a digital currency of the Central Bank in Chile
CBDC, Regulation and the Case for Stablecoins
CBDC, Regulation and the Case for Stablecoins
The Richmond Fed published an article that discusses the question of whether a regulatory framework for stablecoins — where regulated banks can issue stablecoins backed 100% by deposits at the central bank — could serve as an alternative to issuing central bank digital currencies (CBDCs). It concludes that appropriate regulation may offer a path whereby stablecoins become effectively equivalent to CBDCs — when they are issued by regulated institutions and backed by reserves.
#Fintech#CBDC#Stablecoins#CryptoAssets#UnitedStates#DFC
·richmondfed.org·
CBDC, Regulation and the Case for Stablecoins
Circle’s Detailed Reserve Report Shows Only Cash, Short-Term Treasurys Back USDC Stablecoin
Circle’s Detailed Reserve Report Shows Only Cash, Short-Term Treasurys Back USDC Stablecoin
Circle Internet Financial released a detailed – though unaudited – breakdown of its reserve assets for the firm’s USD coin (USDC) that showed $42.1 billion in short-term U.S. government bonds and $13.6 billion in cash. The breakdown also listed the bonds’ individual CUSIP number identifiers. The cash was comprised of deposits at Bank of New York Mellon, Citizens Trust Bank, Customers Bank, New York Community Bank, Signature Bank, Silicon Valley Bank, Silvergate Bank and US Bancorp.
#Fintech#CryptoAssets#Stablecoins#Circle#USDC#DFC
·coindesk.com·
Circle’s Detailed Reserve Report Shows Only Cash, Short-Term Treasurys Back USDC Stablecoin
South Africa completes CBDC DLT security token trials
South Africa completes CBDC DLT security token trials
In April the South African Reserve Bank (SARB) announced the results of the second phase of its Project Khoka 2 (PK2) wholesale central bank digital currency (CBDC) trial, Project Khokha 2, which commenced in February 2021. PK2 explored the impact of distributed ledger technology (DLT) on trading, clearing and settlement by issuing a SARB debenture on a DLT network and enabling two DLT-based payment options in the form of a wholesale CBDC (wCBDC) token and a wholesale digital settlement token (wToken). There was one network where the wCBDC was issued and a second one – the Khokha Hub, where the wToken and tokenized bond were issued and traded. A bridge was used to port the wCBDC to the second network to settle the primary bond issuance transaction.
#Fintech#CBDC#wCBDC#Africa#Settlement#DFC
·resbank.co.za·
South Africa completes CBDC DLT security token trials
Environmental Implications of a Central Bank Digital Currency (CBDC)
Environmental Implications of a Central Bank Digital Currency (CBDC)
The World Bank has published a paper that explores the environmental implications of central bank digital currency (CBDC) and highlights ecological footprint differences between CBDC and other payment methods. As the legitimacy of CBDC is backed by the trust of central banks, it does not need to prove its legitimacy through energy-intensive consensus or mining mechanisms, so its energy consumption is low. CBDC can also be designed to use various systems, such as real time gross settlement systems, distributed ledger technology, or a mixture of both.
#Fintech#CBDC#Environment#DFC
·openknowledge.worldbank.org·
Environmental Implications of a Central Bank Digital Currency (CBDC)
CBDC Role in Strengthening Implementation of Central Bank Mandate
CBDC Role in Strengthening Implementation of Central Bank Mandate
Bank Indonesia continues to research central bank digital currency (CBDC) and plans to issue a white paper at the end of this year concerning the development of a Digital Rupiah. The central bank's CBDC exploration has six salient objectives: (i) providing a risk-free means of digital payment using central bank money, (ii) mitigating the risk of non-sovereign digital currency, (iii) expanding payment system coverage and efficiency, including cross-border transactions, (iv) expanding and accelerating financial inclusion, (v) providing new monetary policy instruments, and (vi) facilitating the distribution of fiscal subsidies.
#Fintech#CBDC#Asia#DFC
·bi.go.id·
CBDC Role in Strengthening Implementation of Central Bank Mandate
Application of the Principles for Financial Market Infrastructures to stablecoin arrangements
Application of the Principles for Financial Market Infrastructures to stablecoin arrangements
The Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO) published their final “same risk, same regulation” guidance on regulating stablecoin arrangements (SAs). The guidance highlights that the transfer function of an SA is comparable to the transfer function performed by other types of financial market infrastructure (FMI). As a result, an SA that performs this transfer function is considered an FMI for the purpose of applying the Principles for Financial Market Infrastructures (PFMI) and, if determined by relevant authorities to be systemically important, the SA as a whole would be expected to observe all relevant principles in the PFMI.
#CryptoAssets#Stablecoins#Regulation#CPMI#IOSCO#Fintech#DFC
·bis.org·
Application of the Principles for Financial Market Infrastructures to stablecoin arrangements
Central Bank Digital Currency: Stability and Information
Central Bank Digital Currency: Stability and Information
The U.S. Office of Financial published a paper that studies how introducing a central bank digital currency (CBDC) would affect the stability of the banking system. It presents a model that captures concerns that the option to hold CBDC can increase the incentive for depositors to run on weak banks. It highlights two countervailing effects. First, banks do less maturity transformation when depositors have access to CBDC, which leaves them less exposed to runs. Second, monitoring the flow of funds into CBDC allows policymakers to identify and resolve weak banks sooner, which also decreases depositors’ incentive to run. The paper's results suggest that a well-designed CBDC may decrease rather than increase financial fragility.
#Fintech#CBDC#UnitedStates#DFC
·financialresearch.gov·
Central Bank Digital Currency: Stability and Information
Issuing Central Bank Digital Currency on Algorand
Issuing Central Bank Digital Currency on Algorand

Issuing Central Bank Digital Currency on Algorand

The Algorand Foundation published a paper that describes its approach to issuing retail central bank digital currency (CBDC), including a detailed overview of relevant design considerations and examples of use cases facilitated by the Algorand platform.

#Fintech#CBDC#Algorand#DFC
·info.algorand.com·
Issuing Central Bank Digital Currency on Algorand
BIS Innovation Hub and Bank Indonesia announce finalists of G20 TechSprint CBDC challenge
BIS Innovation Hub and Bank Indonesia announce finalists of G20 TechSprint CBDC challenge
The Bank for International Settlements (BIS) and Bank Indonesia announced the 21 shortlisted finalists for the G20 TechSprint CBDC challenge. The shortlisted teams now have until the end of August to complete their prototypes, which will then be judged by an independent expert panel convened by Bank Indonesia. Winners for each of the three categories will be announced in October ahead of the G20 Summit. Among the shortlisted were BitMint, R3, Ripple, S.e.A. (Stellar, eCurrency and ANZ), Bitt-IDEMIA, Crunchfish, and Giesecke+Devrient (G+D) Filia.
#Fintech#CBDC#BIS#DFC
·bis.org·
BIS Innovation Hub and Bank Indonesia announce finalists of G20 TechSprint CBDC challenge
France Starts Second Stage of Wholesale CBDC Experiments
France Starts Second Stage of Wholesale CBDC Experiments
The Banque de France (BdF) has kicked off the second phase of experimentation into a wholesale CBDC, with an eyer towards being ready to introduce central bank money as a settlement asset as early as 2023, with the implementation of the European pilot regime. Over the past year, the central bank has successfully completed the first phase of its experimentation program, comprising nine experiments with the private sector and with other public actors, with a focus on cross-borer payments and tokenized securities settlement. Now the BdF wants to get closer to a viable prototype, testing it in practice with more private actors and more foreign central banks in the second half of 2022 and in 2023.
#Fintech#CBDC#Eurozone#wCBDC#CrossBorder#Settlement#France#DFC
·banque-france.fr·
France Starts Second Stage of Wholesale CBDC Experiments
South Korea Ready to Test its CBDC with Commercial Banks
South Korea Ready to Test its CBDC with Commercial Banks
The Bank of Korea (BOK) wants to commence real-world testing for its prototype central bank digital currency (CBDC) with 10 domestic commercial banks in the second half of the year. Until now, the BOK CBDC work has been limited to proof-of-concept experiments, starting with basic functions such as minting, issuance, distribution, and redemption from August to December last year, and payment, digital asset transactions, and cross-border remittances from January to June this year. Now the central bank wants to know whether the prototype is compatible with various banks’ IT platforms and wants to investigate possible interoperability-related issues
#Fintech#CBDC#Asia#DFC
·bok.or.kr·
South Korea Ready to Test its CBDC with Commercial Banks
Options for access to and interoperability of CBDCs for cross-border payments
Options for access to and interoperability of CBDCs for cross-border payments
The Bank for International Settlements Innovation Hub, Committee on Payments and Market Infrastructures, International Monetary Fund and the World Bank assessed different options for cross-border access and interoperability of central bank digital currencies (CBDCs). They highlight that CBDCs currently have a key benefit in being able to consider cross-border functionality already during the initial development phase, but this "clean slate" advantage has an expiry date. International cooperation and coordination are needed in the early stages of CBDC design. In addition, any system must be built with the flexibility to adapt both to a changing world and the different CBDC designs likely to be chosen by central banks.
#Fintech#CBDC#BIS#IMF#CPMI#WorldBank#CrossBorder#Interoperability#DFC
·bis.org·
Options for access to and interoperability of CBDCs for cross-border payments