DFC

5259 bookmarks
Newest
Fake News: Kaj Labs to Partner with Central Bank of Brazil to Launch Digital Real CBDC Trial
Fake News: Kaj Labs to Partner with Central Bank of Brazil to Launch Digital Real CBDC Trial
Banco Central do Brasil (BCB) is reportedly partnering with Seattle-based KaJ Labs, to launch the trail of its central bank digital currency (CBDC). However, there's no mention of it on the BCB website, and the Kaj Labs press release makes it sound more like the firm has merely initiated discussions with the BCB. Also, it's unclear whether they're discussing retail of wholesale CBDC. It sounds more like the latter, with a focus on using DLT to tokenize and settle bonds.
#Fintech#CBDC#SouthAmerica#wCBDC#Tokenization#Settlement#DFC
·prnewswire.com·
Fake News: Kaj Labs to Partner with Central Bank of Brazil to Launch Digital Real CBDC Trial
NYC Coin: Municipal Finance's Next Frontier
NYC Coin: Municipal Finance's Next Frontier
This paper by Satoshi Capital Advisor's Josiah Hernandez explores the financial and technical feasibility of a New York City coin (NYC Coin) to be issued by the New York City government. New York City mayor elect Eric Adams introduced the NYC Coin concept during a radio interview on November 3. He said he wanted to turn New York into a crypto-friendly city and wagered a “friendly competition” with Miami and its Miami Coin cryptocurrency.
#Fintech#CryptoAssets#CBDC#DFC
·researchgate.net·
NYC Coin: Municipal Finance's Next Frontier
EU central banks working on DLT-based asset settlement
EU central banks working on DLT-based asset settlement
Banca d’Italia and Deutsche Bundesbank have been ramping up their efforts to utilize distributed ledger technology (DLT) in central bank money settlements. The initiatives aim to complement current central bank money settlement practices with programmable trigger mechanisms that connect DLT-based assets, like tokenized securities, and cash to be settled via conventional payments systems. This could be seen as complementary to the Digital Euro, which is currently under consideration.
#Fintech#Blockchain#Payments#Settlement#Tokenization#CBDC#wCBDC#DFC
·cointelegraph.com·
EU central banks working on DLT-based asset settlement
mBridge - Building a multi CBDC platform for international payments
mBridge - Building a multi CBDC platform for international payments
The BIS Innovation Hub published a brochure for its mBridge project with a comprehensive list of use cases contributed by 22 commercial banks across four different jurisdictions (China, Hong Kong, Thailand and the United Arab Emirates). The mBridge trial platform has shown that CBDCs can substantially increase the speed of cross-border payments from multiple days to near real-time, while also reducing cost. The project is using an agile and iterative development approach, plus a modular bricks design.
#Fintech#CBDC#mCBDC#wCBDC#CrossBorder#DFC
·hkma.gov.hk·
mBridge - Building a multi CBDC platform for international payments
Central bank digital currencies: motives, economic implications and the research frontier
Central bank digital currencies: motives, economic implications and the research frontier
The Bank for International Settlements (BIS) published a paper that gives a guided tour of the growing literature on central bank digital currency (CBDC) on the microeconomic considerations related to operational architectures, technologies and privacy, and the macroeconomic implications for the financial system, financial stability and monetary policy. A set of questions, particularly on the cross-border dimensions of CBDCs, remains unresolved, and calls for further work to expand the research frontier.
#Fintech#CBDC#DFC
·bis.org·
Central bank digital currencies: motives, economic implications and the research frontier
Digital yuan pilot surges to 140 million, 10% of population
Digital yuan pilot surges to 140 million, 10% of population
The People's Bank of China (PBOC) shared the latest statistics on their digital yuan (eCNY) pilot. The number of wallets opened has increased almost sevenfold since June to 140 million, and the number of merchants capable of accepting the digital renminbi is 1.55 million (see table). However, before launch, more work is needed on capacity expansion, security and risk management, and the legal/regulatory framework. For example, the digital forms of the renminbi have to be added to the People's Bank of China Law, and regulatory measures for eCNY need to be tailormade. [Read more]
#Fintech#CBDC#China#DFC
·ledgerinsights.com·
Digital yuan pilot surges to 140 million, 10% of population
JP Morgan, Oliver Wyman predict CBDC to save $100 billion cross border payment costs
JP Morgan, Oliver Wyman predict CBDC to save $100 billion cross border payment costs
Oliver Wyman and JP Morgan published a joint report exploring how a multiple central bank digital currency (mCBDC) network could save corporates money. They estimate that corporate wholesale payments amount to $24 trillion a year and cost $120 billion, which could fall by $100 billion using an mCBDC network. The savings will come at the expense of banks, via the loss of correspondent banking fees and the reduction of corporate overnight balances by up to $10 billion. Plus, banks will have to pay to operate two sets of cross-border payment systems in parallel during this transition.
#Fintech#CBDC#mCBDC#wCBDC#CrossBorder#Payments#DFC
·ledgerinsights.com·
JP Morgan, Oliver Wyman predict CBDC to save $100 billion cross border payment costs
Central Bank estimates ‘north of $300K’ Sand Dollars in circulation
Central Bank estimates ‘north of $300K’ Sand Dollars in circulation
The Bank of Jamaica estimates that in excess of 20,000 individuals are currently utilizing Sand Dollars, with “north of $300,000” of the central bank digital currency (CBDC) currently in circulation. The central bank is nearing the end of ensuring there is interoperability with the automated clearing house (ACH) so there can be a pass-through link between Sand Dollar wallets and deposit accounts. Once that exercise is completed, the central bank along with the financial institutions, is going to be focusing on making an aggressive push to get more businesses enrolled in the infrastructure.
#Fintech#CBDC#Caribbean#DFC
·ewnews.com·
Central Bank estimates ‘north of $300K’ Sand Dollars in circulation
The Case for CBDCs on Stellar
The Case for CBDCs on Stellar
"Stellar is an open-source, decentralized blockchain network that was designed with asset issuance in mind. It offers the interoperability and flexibility of a permissionless ledger while possessing built-in capabilities to ensure security, certainty, and control – as with a centralized or permissioned ledger. That combination makes it particularly well-suited for issuance of CBDCs. "
#Fintech#CBDC#Blockchain#Stellar#DFC
·stellar.org·
The Case for CBDCs on Stellar
The eNaira’s time has come
The eNaira’s time has come
"The really important question that needs to be addressed, and we plan to do so in a follow up post, is what does Nigeria get out of the eNaira system? Africa’s largest economy is frequently been ravaged by fuel and consumer goods shortages. It is used to double-digit inflation levels. Will eNaira help tackle these issues? In that context what problem does the eNaira really solve? And what are the potential unappreciated blind spots in its design? Are emerging markets particularly likely to benefit from these new structures or the opposite?"
#Fintech#CBDC#Africa#DFC
·ft.com·
The eNaira’s time has come
Digital Fiat Works (NZIA)
Digital Fiat Works (NZIA)
DFW's founding team developed the world's first retail CBDC in production (when the firm was called NZIA). It pioneered numerous groundbreaking innovations that have shaped the evolution of CBDC design; inclusive access, interoperability with legacy systems, policy and regulatory reform, KYC/AML compliance, and systems to guarantee privacy, integrity, governance and trust.
#Fintech#CBDC#Caribbean#DFC
·digitalfiatworks.io·
Digital Fiat Works (NZIA)
President’s Working Group on Financial Markets Releases Stablecoin Report
President’s Working Group on Financial Markets Releases Stablecoin Report
The US President’s Working Group on Financial Markets (PWG) released a report on stablecoins. It concluded that “the absence of appropriate [stablecoin] oversight presents risks to users and the broader system... and current oversight is inconsistent and fragmented, with some stablecoins effectively falling outside the regulatory perimeter. It called on Congress to create legislation to “require stablecoin issuers to be insured depository institutions, which are subject to appropriate supervision and regulation, at the depository institution and the holding company level.”
#Fintech#CryptoAssets#Stablecoins#Regulation#DFC
·home.treasury.gov·
President’s Working Group on Financial Markets Releases Stablecoin Report
Questions remain on USDC's reserves
Questions remain on USDC's reserves
In August, Circle announced it would shift the assets backing its USDC stablecoin out of commercial paper and only invest in "cash and short US Treasuries." However, although its latest attestation shows this transition is complete, it is not classifying anything that matures in 90 days or less as CP (see below). Tether is already reporting at this level of granularity, disaggregating "cash and cash equivalents" into its component parts, so why can't Circle do the same?
#Fintech#CryptoAssets#Stablecoins#Circle#USDC#DFC
·twitter.com·
Questions remain on USDC's reserves
Tether’s bad month: CFTC, Bloomberg, Reggie Fowler
Tether’s bad month: CFTC, Bloomberg, Reggie Fowler
"As well as the settlement with the CFTC and a $41 million fine this month (covered here two days ago), everyone’s favourite stablecoin issuer, Tether Inc., had a front-cover story in Bloomberg Businessweek — confirming quite a few things that people like me have been saying over the past few years."
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·davidgerard.co.uk·
Tether’s bad month: CFTC, Bloomberg, Reggie Fowler
Interoperability of stablecoins
Interoperability of stablecoins
"Without access to central bank payment rails, non-bank stablecoins will be perceived (however large the HQLA buffers they may propose) to be less safe than bank stablecoins. As most stablecoins are in US dollars, the US has an opportunity to exploit its (relatively) late entry into the stablecoins discussion. Allowing stablecoins from banks and non-banks chartered as banks to interoperate – not just by enabling both to have access to central bank payment systems, but also by enabling the use of public, open-source technology protocols that already interoperate with each other – will make a difference in the payments/settlements landscape."
#Fintech#CryptoAssets#Stablecoins#CBDC#Interoperability#DFC
·centralbanking.com·
Interoperability of stablecoins
Moneyness: Does it make a difference if Tether lends out new USDt?
Moneyness: Does it make a difference if Tether lends out new USDt?
"Tether says in its terms of service that it only creates new stablecoin tokens, USDt, in acceptance for money. That is, to get $1 worth of USDt from Tether, you need to send it $1 in actual U.S. dollars. But in reality, Tether does not seem to be waiting for deposits to roll in before issuing new USDt. As the FT's Kadhim Shubber reports, it is directly lending new USDt out, much like how a bank puts new dollar IOUs into circulation by lending them out."
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·jpkoning.blogspot.com·
Moneyness: Does it make a difference if Tether lends out new USDt?
OFS and AUGENTIC GmbH reveal the design of the offline "Smart Banknote CBDC" prototype OFS
OFS and AUGENTIC GmbH reveal the design of the offline "Smart Banknote CBDC" prototype OFS
"Orell Füssli Ltd. Security Printing and AUGENTIC GmbH announced their partnership on a “Smart Banknote CBDC” solution including trustwise.io´s Distributed Ledger Technology (DLT) a week ago. A smart banknote is a physical banknote that interacts with a CBDC solution and acts as a transitional device between traditional and CBDC based payment systems. A smart banknote can be used like a classic banknote; however, the owner can redeem his cold wallet (physical banknote) and transfer the note’s value to a digital wallet by scanning the QR code with the private key. Our smart banknote includes a public and a private key represented by QR codes of which the private one is sealed. When the cover of the private key is removed, the QR code scanned, the value of the banknote can be transferred to a digital wallet. Conceptually after this procedure, the smart banknote cannot be transferred anymore."
#Fintech#CBDC#Offline#SmartNotes#DFC
·ofs.ch·
OFS and AUGENTIC GmbH reveal the design of the offline "Smart Banknote CBDC" prototype OFS
AgAu.io: The Peer-To-Peer Electronic Money System
AgAu.io: The Peer-To-Peer Electronic Money System
"The company AgAu AG was founded in 2018 and borrowed its name from the merger of the two atomic symbols “Ag” (for Silver) and “Au” (for Gold). As AgAu we plan to issue digital tokens corresponding to the direct ownership of allocated silver and gold bullions in Switzerland. We aim to be the easiest way to transact the direct ownership of allocated and redeemable physical LBMA quality gold and silver. The precious metals are audited and secured in regulated private vaults outside the banking system."
#Fintech#CryptoAssets#Stablecoins#DFC
·agau.io·
AgAu.io: The Peer-To-Peer Electronic Money System
Central bank digital currencies as superheroes?
Central bank digital currencies as superheroes?
This speech by Tara Rice, Head of Secretariat, Committee on Payments and Market Infrastructures, focuses on three topics related to how CBDCs can help on the international dimension of payments: (i) a taxonomy to describe the different forms and elements of cross-border interoperability; (ii) the conceptual trade-off between cost and complexity on the one hand and benefits on the other (which in this case would be mainly in reducing the frictions of cross-border payments); and (iii) some thoughts on lessons learned and the way forward.
#CBDC#CrossBorder#Interoperability#Fintech#DFC
·bis.org·
Central bank digital currencies as superheroes?
Tether Trials Solution to Comply With FATF Travel Rule
Tether Trials Solution to Comply With FATF Travel Rule
Tether, will test trial a solution that will allow it to comply with the travel rule proposed by the Financial Action Task Force (FATF). The solution that will be tested, provided by Notabene, a software company that offers compliance solutions, will allow this information to be relayed between virtual asset service providers (VASPs). This solution aims to make tether (USDT) more friendly to law enforcement agencies all around the world.
#Stablecoins#Tether#Regulation#CryptoAssets#Fintech#DFC
·news.bitcoin.com·
Tether Trials Solution to Comply With FATF Travel Rule
At the dawn of a new age – Money in the 21st century
At the dawn of a new age – Money in the 21st century
The Central Bank of Hungary (MNB) has published a book that summarizes the theoretical considerations, the most important practical issues, the motives behind the potential creation of this new instrument and the opportunities offered by central bank digital currency (CBDC). It also covers CBDC monetary policy, financial stability, and cash flow impacts, as well as the issues of infrastructural implementation.
#Fintech#CBDC#DFC
·mnb.hu·
At the dawn of a new age – Money in the 21st century
ECB announces members of Digital Euro Market Advisory Group
ECB announces members of Digital Euro Market Advisory Group
The European Central Bank (ECB) announced the members of the Market Advisory Group for the digital euro project. The Eurosystem’s High-Level Task Force on Central Bank Digital Currency called for expressions of interest on 14 July, following the Governing Council’s approval of the digital euro project investigation phase. After assessing applications, the selection committee appointed 30 senior business professionals with proven experience and a broad understanding of the euro area retail payments market. Meetings are to be held at least quarterly, starting in November 2021, and written consultations will be organised between meetings. The issues identified will also be considered in the Eurosystem’s established forum for institutional dialogue on retail payments, the Euro Retail Payments Board (ERPB).
#Fintech#CBDC#Eurozone#DFC
·ecb.europa.eu·
ECB announces members of Digital Euro Market Advisory Group
Nigeria to launch digital currency on Monday
Nigeria to launch digital currency on Monday
The Central Bank of Nigeria (CBN) will launch its eNaira central bank digital currency (CBDC) on Monday, October 24. The launch had been originally scheduled for October 1, but it was delayed in deference to other key activities lined up to commemorate the country’s 61st Independence Anniversary. However, Nigerians have been able to download the eNaira app from either the Google Play or Apple App stores since lte September. The CBN also published a white paper that provides detail on the eNaira's critical dimensions.
#Fintech#CBDC#Africa#DFC
·cbn.gov.ng·
Nigeria to launch digital currency on Monday
RBA is exploring wholesale CBDC applications to securities DVP settlement
RBA is exploring wholesale CBDC applications to securities DVP settlement
The Reserve Bank of Australia (RBA) revealed, in its submission to the Australian Senate Select Committee on Financial Technology and Regulatory Technology, that it has been conducting research on wholesale CBDC, in its in-house Innovation Lab. This included the development in 2019 of a limited proof-of-concept of a distributed ledger technology (DLT) based interbank payment system using a tokenized form of CBDC backed by exchange settlement account (ESA) balances held at the RBA. Currently, the RBA is close to finalising a project with a number of external parties that extends the earlier proof-of-concept in a number of ways, including to incorporate tokenized financial assets. The project explores the implications of delivery-versus-payment (DVP) settlement on a DLT platform as well as other programmability features of tokenized CBDC and financial assets.
#Fintech#CBDC#wCBDC#Tokenization#SettlementSystems#PaymentSystems#DFC
·parlinfo.aph.gov.au·
RBA is exploring wholesale CBDC applications to securities DVP settlement
Central bank targets large merchants for digital wallets
Central bank targets large merchants for digital wallets
The Bank of Jamaica's push to deepen the mobile money market forms part of the central bank's CBDC drive to reduce cash usage. Governor Byles reportedly appealed to banks and other deposit-taking institutions to encourage their merchant customers to set up CBDC wallets. In particular, he wants to see cash-intensive industries to set up digital wallets to pay pensioners, enable toll road payments, and facilitate remittance flows. The test phase of the Jamaica CBDC, to assess the smoothness of transactions and get a read on the potential market receptivity to a digital currency, is under way and should wrap up by year end, with a public roll-out scheduled soon after.
#Fintech#CBDC#DFC
·jamaica-gleaner.com·
Central bank targets large merchants for digital wallets