DFC

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About Vow
About Vow
"Vow itself is a tool; a tool through which communities can contribute to the creation of a parallel currency supply. Businesses and individuals which form any community can work together, cooperatively eliminating the risks inherent in centralized currency systems."
#Fintech#CBDC#DFC
·vowcurrency.com·
About Vow
Abaku Capital
Abaku Capital
Abaku SDR is 100% backed by the currencies underlying the IMF’s currency. Deposits are held by a major international bank with monthly audits conducted by a certified accounting firm to validate the presence of collateral
#Fintech#CBDC#SDR#DFC
·abaku.capital·
Abaku Capital
Possible Design Choices of CBDC
Possible Design Choices of CBDC
On April 13, 2022, UCHIDA Shinichi, Executive Director of the Bank of Japan, provided an update on the Bank of Japan's central bank digital currency (CBDC) work.
#Fintech#CBDC#Japan#DFC
·boj.or.jp·
Possible Design Choices of CBDC
UST Stablecoin Briefly Loses Peg, Luna Drops 10%
UST Stablecoin Briefly Loses Peg, Luna Drops 10%
TerraUSD (UST), the the third largest stablecoin by market capitalization and the largest algorithmic stablecoin, briefly lost its dollar peg on May 7, 2022, falling to .987 before bouncing back the next day. This wasn't UST's first depeg, nor its largest, but it marks the first time it has lost its peg since it started building out Bitcoin and Avalanche reserves. The depeg did not cause Terra to tap into its Bitcoin reserves, as the deployment of hundreds of millions of dollars of rescue capital appeared enough to buoy the token back to around $1.
#Fintech#CryptoAssets#Stablecoins#Terra#DFC
·coindesk.com·
UST Stablecoin Briefly Loses Peg, Luna Drops 10%
Gaining momentum – Results of the 2021 BIS survey on central bank digital currencies
Gaining momentum – Results of the 2021 BIS survey on central bank digital currencies

90% of the 81 central banks surveyed by the Bank for International Settlements (BIS) are exploring central bank digital currency (CBDC). Compared with last year's survey, the share of  central banks currently developing a CBDC or running a pilot almost doubled from 14% to 26%, and 62% are conducting experiments or proofs-of-concept. The results show that the work on retail CBDCs is at a more advanced stage than the work on wholesale CBDCs. Almost one fifth of central banks are developing or testing a retail CBDC, which is twice the share of central banks building or piloting a wholesale CBDC, which is increasingly driven by reasons related to cross-border payments efficiency. 68% of the surveyed central banks consider that they are likely to or might possibly issue a retail CBDC in either the short or medium term.

#Fintech#CBDC#BIS#DFC
·bis.org·
Gaining momentum – Results of the 2021 BIS survey on central bank digital currencies
Abaku Capital
Abaku Capital
The primary function of Abaku Capital is the maintenance and promotion of a family of tokens aimed at facilitating commerce. The flagship token is designed for monetary stability, and as a hedge against foreign-exchange risk, whereas the rest of the family comprises tethers to various currencies of interest. This token is, in essence, a cryptonisation of the International Monetary Fund’s proprietary currency, the SDR (special drawing rights). The SDR, and therefore its Abaku counterpart, is an asset-backed currency based on a basket of national currencies managed by the IMF.
#Fintech#CryptoAssets#Stablecoins#SDR#DFC
·abaku.capital·
Abaku Capital
Proposed digital euro designs lack privacy options, ECB presentation shows
Proposed digital euro designs lack privacy options, ECB presentation shows
"Next to the fears of government overreach that the European Union’s ambitious digital euro project stirred, the main concern of the public is the prospective currency’s privacy framework. It appears that this worry might not be overblown after all, as the European Central Bank’s (ECB) latest presentation hints that user anonymity is not a desirable design option."
#Fintech#CBDC#Eurozone#Privacy#DFC
·cointelegraph.com·
Proposed digital euro designs lack privacy options, ECB presentation shows
Zimdollar: RBZ seeks crypto solution
Zimdollar: RBZ seeks crypto solution
The Reserve Bank of Zimbabwe reportedly decided to issue central bank digital currency (CBDC). The central bank is currently still at the research stage, and will be moving to the design stage shortly, although they have yet to decide whether it would be retail or wholesale.
#Fintech#CBDC#Africa#DFC
·newsday.co.zw·
Zimdollar: RBZ seeks crypto solution
About Input Output - IOHK
About Input Output - IOHK
"Founded in 2015 by Charles Hoskinson and Jeremy Wood, IOHK is one of the world's pre-eminent blockchain infrastructure research and engineering companies. We are a fully decentralised remote working organisation committed to the highest principles of academic rigour and evidence-based software development. The company builds high-assurance blockchain infrastructure solutions for public, private sector and government clients. It is also the driving force behind the decentralised and smart contract platform, Cardano."
#Fintech#CryptoAssets#CBDC#Blockchain#DFC
·iohk.io·
About Input Output - IOHK
Cash and COVID-19 in Canada: What happened in 2021
Cash and COVID-19 in Canada: What happened in 2021
The Bank of Canada provided an update on the impact the COVID-19 pandemic on the demand for cash and the use of methods of payment based on data from the Bank Note Distribution System and from consumer surveys conducted in April and August 2021. Cash in circulation remained high throughout 2021, driven mainly by demand for large-denomination notes. Canadians’ holdings of cash on hand in April (median $70) and August (median $80) were comparable to results seen in 2020. Other cash holdings reported by Canadians remained elevated, with a median value of $260 in August. In August 2021, 62% of Canadians used cash for payments, and indicators of merchant acceptance of cash improved in both the April and August surveys. A large majority of Canadians (around 80%) in 2021 continued reporting that they have no plans to go cashless in the next five years.
#Fintech#CBDC#Cash#Canada#DFC
·bankofcanada.ca·
Cash and COVID-19 in Canada: What happened in 2021
How central banks are moving into e-money
How central banks are moving into e-money
"Central banks must ensure that the currencies are successful, but not too successful. In a report to the European Parliament Mr Brunnermeier and Jean-Pierre Landau of Sciences Po in Paris suggest that a central bank “will have to ensure that the cbdc is present everywhere but important nowhere”."
#Fintech#CBDC#DFC
·economist.com·
How central banks are moving into e-money
Towards the holy grail of cross-border payments
Towards the holy grail of cross-border payments
This paper, co-authored by the European Central Bank's Ulrich Bindseil, describes current potential "holy grail" ways to cheap cross-border payments that settle immediately in a secure settlement medium. It concludes that several solutions are suitable and some may even be the holy grail.
#Fintech#CBDC#CrossBorder#Stablecoins#DFC
·papers.ssrn.com·
Towards the holy grail of cross-border payments
Argentine Central Bank Explores Central Bank Digital Currency
Argentine Central Bank Explores Central Bank Digital Currency
Banco Central de la República Argentina published a paper that summarizes the design and architecture alternatives under study to minimize some of the risks of issuing a retail CBDC. There are no indications in the paper that the central bank has plans for deeper exploration.
#Fintech#CBDC#LATAM#DFC
·bcra.gob.ar·
Argentine Central Bank Explores Central Bank Digital Currency
Reserve Bank pleased with strong public interest in the Future of Money
Reserve Bank pleased with strong public interest in the Future of Money
The New Zealand Reserve Bank published a summary of responses to three 2021 "future of money" issues papers, one of which canvassed issues and options for a potential central bank digital currency (CBDC). Feedback reinforced the need for privacy to be a critical feature of any potential CBDC.
#Fintech#CBDC#Asia#DFC
·rbnz.govt.nz·
Reserve Bank pleased with strong public interest in the Future of Money
ECB issues expression of interest for CBDC prototype user interfaces
ECB issues expression of interest for CBDC prototype user interfaces
The European Central Bank (ECB) has launched a call for expression of interest for payment service providers, banks and technology companies to join an exercise to develop prototype user interfaces for a digital euro. The ECB specifies 28 separate possible use cases, covering all aspects of the design process, from QR codes to user authentication, electronic ID (EID) and know-your-customer (KYC), among others.
#Fintech#CBDC#Eurozone#DFC
·ecb.europa.eu·
ECB issues expression of interest for CBDC prototype user interfaces
Retail CBDC purposes and risk transfers to the central bank
Retail CBDC purposes and risk transfers to the central bank
"The issuance of retail central bank digital currency (CBDC) entails a transfer of risk from commercial banks to the central bank. While this paper does not provide an overall assessment on whether or not to issue a retail CBDC, it analyzes how different mechanisms to limit the risk transfer, such as an unattractive interest rate on retail CBDC, a quantity ceiling or preventing convertibility of cash and reserves into CBDC, have different effects on the ability of retail CBDC to fulfil its intended purposes. In particular, these mechanisms hinder the use of CBDC as a medium of exchange. Specific aspects of demand and challenges related to a potential retail CBDC in Switzerland, namely, a small open economy with a safe-haven currency and a low level of government debt, are discussed."
#Fintech#CBDC#Switzerland#DFC
·snb.ch·
Retail CBDC purposes and risk transfers to the central bank
Bangko Sentral ng Pilipinas pursues digital currency pilot project
Bangko Sentral ng Pilipinas pursues digital currency pilot project
The Bangko Sentral ng Pilipinas (BSP) has decided to pursue a wholesale CBDC pilot project as part of its efforts to promote the stability of the country’s payment system. Dubbed CBDCPh, it will test the use of CBDCs for large-value financial transactions on a 24/7 basis across a limited number of financial institutions.
#Fintech#CBDC#wCBDC#Asia#Philippines#DFC
·bsp.gov.ph·
Bangko Sentral ng Pilipinas pursues digital currency pilot project
HKMA discussion paper on e-HKD from policy and design perspective
HKMA discussion paper on e-HKD from policy and design perspective
The Hong Kong Monetary Authority (HKMA) has published a discussion paper inviting views on the key issues around a retail central bank digital currency (CBDC). This is a followup to the paper published in October 2021 on potential architectures and design options for distributing e-HKD, and this new one focuses on use cases, the issuance mechanism, interoperability with other payment systems, privacy and data protection. Members of the public and the industry have until May 27, 2022 to submit comments.
#Fintech#CBDC#Asia#DFC
·hkma.gov.hk·
HKMA discussion paper on e-HKD from policy and design perspective
Visa, Mastercard are upping merchant fees
Visa, Mastercard are upping merchant fees
"Most credit card companies don’t impose swipe fees on consumers, charging vendors instead. But shoppers end up bearing those costs, as vendors hike prices to cover the fees. The National Retail Federation (NRF), the country’s largest retail association, estimates credit cards cost the average American family $700 a year, an amount that will only grow with the new fees."
#Fintech#CBDC#MasterCard#VISA#DFC
·qz.com·
Visa, Mastercard are upping merchant fees
Deciding on a Digital Dollar: The Necessary Steps for Canada
Deciding on a Digital Dollar: The Necessary Steps for Canada
I spoke at a workshop hosted by the Centre for International Governance Innovation (CIGI) and Bennett Jones on the need for, and design of, a digital Canadian central bank digital currency (CBDC) or "digital loonie". It focused on three areas: what can Canada learn from CBDC first movers (that was the session I participated in), what are the early steps necessary to prepare and design a digital loonie, and what will be required legally for a CBDC and what are the legal pillars on which that system could be based. It was run under Chatham House Rule but a summary report will be published within the next few months.
#Fintech#CBDC#Canada#DFC
·cigionline.org·
Deciding on a Digital Dollar: The Necessary Steps for Canada
Mexico plans a retail CBDC by 2025
Mexico plans a retail CBDC by 2025
The new Governor of the Bank of Mexico, Victoria Rodríguez Ceja, confirmed plans to release a retail central bank digital currency (CBDC) during 2025. During a presentation to the Mexican Senate, the Governor said the first goal of its CBDC will be financial inclusion. It also wants to provide more fast payments options and ensure the economy is efficient and interoperable. The Governor said she’s also keen to enable programmable money and promote innovation. https://www.banxico.org.mx/publications-and-press/speeches/%7BD7EB1919-DE55-95ED-B0F7-0887AE4C6843%7D.pdf
#Fintech#CBDC#LATAM#DFC
·ledgerinsights.com·
Mexico plans a retail CBDC by 2025
Cash Is An Offline Thing
Cash Is An Offline Thing
"In fact, the ability to transact between devices that are not connected to a network at all either because the cloud is down, or there is no mobile network or there is no power because of a natural disaster is a key design requirement for the Chinese digital currency and it should be one for any other digital currency that intends to replace, or even complement, cash."
#Fintech#CBDC#Offline#DFC
·forbes.com·
Cash Is An Offline Thing
You Lost Your Electronic Cash? Tough Luck.
You Lost Your Electronic Cash? Tough Luck.
"If you want to have a central bank digital currency that is a form of electronic cash, that is value that can be transferred from person to person (or, more accurately, from device to device) without online access to some central database or blockchain or whatever else, then you have the obvious problem that if the device containing the electronic cash is lost or destroyed then the value is lost or destroyed with it. But is this actually a problem? I mean, should we try to design a digital currency so that it can be recovered? Maybe it is better if it can be lost."
#Fintech#CBDC#Offline#DFC
·forbes.com·
You Lost Your Electronic Cash? Tough Luck.
G20 and FATF should not infringe on the human right to privacy
G20 and FATF should not infringe on the human right to privacy
"It is important to note that there has not been a sufficient and proper political debate on the balance between human rights and anti-terrorism measures. And as we already have Human Right Treaties in place outlining that mass surveillance and retaining of data of innocent people are a human right infringement, we can only conclude that our Ministries of Finance and Governments are about to make a historical and major mistake that violate their own commitments to privacy. "
#Fintech#CryptoAssets#CBDC#Privacy#DFC
·moneyandpayments.simonl.org·
G20 and FATF should not infringe on the human right to privacy
Will the digital euro respect citizens’ privacy?
Will the digital euro respect citizens’ privacy?
"Physical cash should be the standard for evaluating how to strike a balance between ensuring privacy and adhering to anti-money laundering (AML) and countering the financing of terrorism (CTF) rules. At a minimum, this implies allowing real anonymity and transaction privacy for daily life transactions up to limits that are similar to the current limits for cash. In addition to full anonymity for low-value transactions, a high level of pseudo-anonymity should be provided for all larger transactions to ensure a high level of identity protection."
#Fintech#CBDC#Privacy#AMLCFT#FinancialIntegrity#DFC
·positivemoney.eu·
Will the digital euro respect citizens’ privacy?
‘Built to Fail’? Why TerraUSD’s Growth Is Giving Finance Experts Nightmares
‘Built to Fail’? Why TerraUSD’s Growth Is Giving Finance Experts Nightmares
"UST, by contrast, began life as what’s known as an “algorithmic” stablecoin. These could also be referred to as “decentralized” stablecoins because decentralization is their primary reason for existing. A collateralized stablecoin like USDT or USDC is reliant on banks and traditional markets. That makes them in turn subject to regulation, enforcement and ultimately, censorship of transactions. Circle and Tether are run by centralized corporate entities with the ability to blacklist users and even seize their funds. Both systems have done this, sometimes at government behest."
#Fintech#CryptoAssets#Stablecoins#Terra#DFC
·coindesk.com·
‘Built to Fail’? Why TerraUSD’s Growth Is Giving Finance Experts Nightmares
Russia makes 'digital' rouble, home-grown credit card push
Russia makes 'digital' rouble, home-grown credit card push
Russia reportedly plans to have a digital ruble capable of making international payments ready by next year and also wants to expand the number of countries that accept its Visa- and Mastercard-style banking cards that are administrated by the central bank. Central Bank Governor Elvira Nabiullina also said Russia aims to extend the number of countries that accept the central bank’s MIR banking cards, an alternative to Visa and MasterCard which have joined other Western firms and suspended operations in Russia.
#Fintech#CBDC#Russia#DFC
·reuters.com·
Russia makes 'digital' rouble, home-grown credit card push
The Stability of Algorithmic Stablecoins
The Stability of Algorithmic Stablecoins
Here is how an algorithmic stablecoin works. You invent two tokens, call them Dollarcoin and Sharecoin. You list them on the crypto exchanges. Sharecoin trades for whatever price is determined by supply and demand. It might be $0.01 per Sharecoin, or $1, or $100, who knows. But Dollarcoin is supposed to trade at $1. If it trades at $0.99, you have some automatic process in which you print more Sharecoins and use them to buy Dollarcoins until it is back to $1. If it trades at $1.01, you have some automatic process in which you print some more Dollarcoins and use them to buy Sharecoins until it is back to $1. The result is that Dollarcoin is firmly pegged to the dollar. The process is sometimes compared to algorithmic central banking, where the central bank maintains the value of the currency (Dollarcoin) by adjusting its supply.
#Fintech#CryptoAssets#Stablecoins#Terra#DFC
·bloomberg.com·
The Stability of Algorithmic Stablecoins
Japan to model digital yen tests on Sweden’s approach, not China’s
Japan to model digital yen tests on Sweden’s approach, not China’s
The Bank of Japan will reportedly explore central bank digital currency (CBDC) design issues in measured steps like Sweden rather than pressing ahead with large-scale pilot tests like China, according to Kazushige Kamiyama, the head of the BOJ’s payment system department.
#Fintech#CBDC#Japan#DFC
·japantimes.co.jp·
Japan to model digital yen tests on Sweden’s approach, not China’s