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What will China’s central bank digital currency mean for Alipay and WeChat Pay?
What will China’s central bank digital currency mean for Alipay and WeChat Pay?
China’s digital currency will have two tiers, comprising the first level distributed by the central bank to commercial banks, and a second layer used by retail customers. The first-level design of the CBDC has been “basically completed” along with the formulation of technical standards and interoperability tests. The e-yuan will next be distributed to payment service providers and other private sector institutions, the central bank said in a July report published by the International Monetary Fund (IMF). To avoid such upsets, the Peoples Bank of China (PBOC) told the IMF that it is likely to limit e-yuan to small, retail transactions by setting maximum daily and yearly limits on payments and that it will only process large amounts by appointment. The PBOC said it may apply fees for large-sum or high-frequency transactions. It will also offer no interest on accounts.
#Fintech#CryptoAssets#CBDC#DFC
·amp-scmp-com.cdn.ampproject.org·
What will China’s central bank digital currency mean for Alipay and WeChat Pay?
Design choices for central bank digital currency
Design choices for central bank digital currency
This article provides a summary of a recent working paper on considerations for central bank digital currency (CBDC) design. Much like the recent IMF working paper that covers similar territory, it finds that the benefits and risks of CBDC are complex, encompassing financial, legal, and technical considerations and the interplay among them. And each country will have to take into account its specific circumstances and initial conditions before deciding whether the potential benefits of introducing a CBDC outweigh the possible costs. It concludes that a two-layer infrastructure with central bank management of the digital ledger and existing financial institutions providing customer service is a likely choice, because it would maintain existing financial sector business models and avoid disintermediation of the financial system.
#Fintech#CryptoAssets#CBDC#DFC
·voxeu.org·
Design choices for central bank digital currency
Hyperledger Capital Markets Special Interest Group
Hyperledger Capital Markets Special Interest Group
The Hyperledger Capital Markets Special Interest Group (CMSIG) represents industry professionals working together to study how Hyperledger DLTs interact with Capital Markets use cases. This covers issuance and trading of instruments to continued market-making, management of risk, program-trading, regulations, capital requirements, traceability, post trade settlement, custody including corporate actions and more. This group also explores architecture, identity and performance related considerations specific to Capital Markets and DLTs.
#Fintech#Blockchain#CBDC#Hyperledger#DFC
·lists.hyperledger.org·
Hyperledger Capital Markets Special Interest Group
Sistema de Dinero Electrónico (2014–2018) — Ecuador’s sort-of CBDC
Sistema de Dinero Electrónico (2014–2018) — Ecuador’s sort-of CBDC
Ecuador's Sistema de Dinero Electrónico (SDE) had a limited launch in late 2014, and a full public launch in 2015, but the system failed to take off and was shut down in March 2018. This was arguably a central bank digital currency, because it was issued by the Banco Central del Ecuador (BCE). However, the currency was the U.S. dollar, which has been the national currency since March 2000. Ecuadorians could get an account at the BCE with an identity card and a mobile phone, after which they could go to an authorized outlet and deposit cash into the account. Each dollar in SDE was backed by a dollar stored at BCE, so this was more like e-money or a central bank-backed stablecoin.
#Fintech#CryptoAssets#CBDC#DFC
·davidgerard.co.uk·
Sistema de Dinero Electrónico (2014–2018) — Ecuador’s sort-of CBDC
The Eastern Caribbean Central Bank DCash is coming soon!
The Eastern Caribbean Central Bank DCash is coming soon!
The Eastern Caribbean Central Bank (ECCB) will soon launch its DCash digital version of the EC Dollar. The central bank digital currency (CBDC) will be rolled out initially in Antigua and Barbuda, Grenada, Saint Kitts and Nevis, and Saint Lucia. With it, for example, folks who live in Grenada will be able to send DCash to family and friends in Saint Kitts and Nevis. Those who shop in Saint Lucia but live in Antigua or Barbuda will be able to send DCash from Antigua Barbuda to pay merchants for goods and services in Saint Lucia.
#Fintech#CryptoAssets#CBDC#DFC
·linkedin.com·
The Eastern Caribbean Central Bank DCash is coming soon!
Mastercard Launches Central Bank Digital Currencies Testing Platform
Mastercard Launches Central Bank Digital Currencies Testing Platform
Mastercard announced a proprietary virtual testing environment for central banks to evaluate central bank digital currency (CBDC) use cases. The platform enables the simulation of issuance, distribution and exchange of CBDCs between banks, financial service providers and consumers. Central banks, commercial banks, and tech and advisory firms are invited to partner with Mastercard to assess CBDC tech designs, validate use cases and evaluate interoperability with existing payment rails available for consumers and businesses today.
#Fintech#CryptoAssets#CBDC#MasterCard#DFC
·investor.mastercard.com·
Mastercard Launches Central Bank Digital Currencies Testing Platform
China’s DC/EP central bank digital currency — what we know
China’s DC/EP central bank digital currency — what we know
The People’s Bank of China (PBOC) says it’s been working on a central bank digital currency (CBDC) since 2014, and they announced in July 2019 that they were moving the CBDC project to active status — to turn it into something releasable to the public. But there have been no official source hard details from the PBOC about the project. The PBOC seems reluctant to promote DC/EP. In this post David Gerard provides a nice summary of what we do and don't know.
#Fintech#CryptoAssets#CBDC#DFC
·davidgerard.co.uk·
China’s DC/EP central bank digital currency — what we know
CBDCs: Geopolitical Ramifications of a Major Digital Currency
CBDCs: Geopolitical Ramifications of a Major Digital Currency
With most reports focused on technical aspects, it’s time to look at how digital currencies will impact the prominence of the Euro. A widely adopted digital currency could force the Euro out of its position in second, especially with the US Dollar showing no signs of budging from the top position. Based on this, we explore the necessary steps to protect its current position and how a digital Euro might lend to this goal.
#Fintech#CryptoAssets#CBDC#DFC
·dgen.org·
CBDCs: Geopolitical Ramifications of a Major Digital Currency
No one can refuse China’s digital currency, says central bank exec
No one can refuse China’s digital currency, says central bank exec
Fan Yifei, a deputy governor of the People's Bank of China (PBoC), outlined the major regulatory principles for the operation of the digital yuan. According to the renminbi's indemnity provisions, the digital renminbi could be used to pay all public and private debts within the territory of our country, and it should be accepted everywhere in the country, and “no unit or individual may refuse to accept it if the conditions are met.” https://www.financialnews.com.cn/ll/gdsj/202009/t20200914_200849.html
#Fintech#CryptoAssets#CBDC#DFC
·cointelegraph.com·
No one can refuse China’s digital currency, says central bank exec
A Primitive Smart Contract-Embedded Physical Currency
A Primitive Smart Contract-Embedded Physical Currency
From 1942 to 1944, the US issued what collectors call Hawaiian Overprints. As can be seen in the image, certain notes had "Hawaii" overprinted on their faces and backs. The notes were $1 Silver Certificates and $5, $10, and $20 Federal Reserve Notes. They were issued only in Hawaii with some circulating in US military theaters in the far East. The notes were issued after the start of World War II in the Pacific. And, the smart contract part of the notes was the "Hawaii" overprint. If the notes ever fell into enemy hands they would become worthless, not being recognized as legitimate US currency. Thus, like a smart contract, when certain conditions were met, the value of the note changed. In this case, it went to zero.
#Fintech#CryptoAssets#CBDC#SmartContracts#DFC
·linkedin.com·
A Primitive Smart Contract-Embedded Physical Currency
Lessons learned from the world’s first CBDC
Lessons learned from the world’s first CBDC
The Avant smart card system created by the Bank of Finland in the 1990’s can be considered the world’s first CBDC and the only one so far that has gone into production. Avant cards were based on smart card technology similar to that used in debit and credit cards today. Even though the system was initiated, developed, and for the first few years operated by the central bank, it was eventually spun off and sold to commercial banks. Once debit cards became less expensive and were upgraded to use smart card technology, Avant became obsolete and was shut down.
#Fintech#CryptoAssets#CBDC#DFC
·helda.helsinki.fi·
Lessons learned from the world’s first CBDC
French Multinational Bank to Launch a Digital Euro Pilot Using Tezos Blockchain
French Multinational Bank to Launch a Digital Euro Pilot Using Tezos Blockchain
Blockchain firm Tezos has been selected by Societe Generale to spearhead the Banque de France's digital currency pilot program. The French central bank selected Societe Generale in July after a successful review of applicants in development of a wholesale central bank digital currency (CBDC) to ease interbank settlements. https://www.nomadic-labs.com/download/cp.pdf
#Fintech#CryptoAssets#CBDC#Tezos#DFC
·bitcoinexchangeguide.com·
French Multinational Bank to Launch a Digital Euro Pilot Using Tezos Blockchain
Central Bank Digital Currencies: Money Reinvented
Central Bank Digital Currencies: Money Reinvented
CBDC are currently being investigated by several central banks, with China and Sweden having undertaken trials. Major uncertainties remain about how full-scale CBDC would operate and about their implications for capital markets. Further, there are important concerns about potential threats to individuals’ privacy. But, as this Deutsche Bank report points out, CBDC may soon become part of our lives, so societies need to learn how to use them best.
#Fintech#CryptoAssets#CBDC#DFC
·db.com·
Central Bank Digital Currencies: Money Reinvented
Bahamas Plans E-Currency to Connect Far-Flung Island Beaches
Bahamas Plans E-Currency to Connect Far-Flung Island Beaches
According to Bloomberg, the Central Bank of the Bahamas will roll out its Sand Dollar digital currency nationwide in October, after piloting the islands of Exuma and Abaco since December. The central bank will mint more Sand Dollars as demanded, at the same time removing physical currency out of circulation to prevent inflating the monetary supply. Once the system is up and running, holders will be able to use their mobile phones to make person-to-person or business transactions -- even when they’re offline.
#Fintech#CryptoAssets#CBDC#DFC
·bloomberg.com·
Bahamas Plans E-Currency to Connect Far-Flung Island Beaches
China needs first mover advantage in digital currency race: PBOC magazine
China needs first mover advantage in digital currency race: PBOC magazine
China needs to become the first nation to issue a digital currency in its push to internationalise the yuan and reduce its dependence on the global dollar payment system, a commentary published in the People’s Bank of China's China Finance magazine. It said the rights to issue and control a digital currency would become a “new battlefield” of competition between sovereign countries. The article also argued that the improved data feedback from a digital currency would help enhance monetary policy transmission. https://finance.sina.com.cn/blockchain/roll/2020-09-21/doc-iivhuipp5312351.shtml
#Fintech#CryptoAssets#CBDC#DFC
·reuters.com·
China needs first mover advantage in digital currency race: PBOC magazine
China Finance Magazine: New Opportunities for the Development of China's Legal Digital Currency
China Finance Magazine: New Opportunities for the Development of China's Legal Digital Currency
The People's Bank of China started research on legal digital currency as early as 2014 and has been in a leading position. China's legal digital currency (DC/EP) has five advantages: solid credit endorsement, huge user base, strong user habits, leading theoretical framework, and RMB internationalization. In 2019, the People's Bank of China basically completed the top-level design, standard formulation, function research and development, and joint debugging and testing of legal digital currency. In 2020, starting from April when the new crown pneumonia epidemic was brought under control in China, DC/EP began a small-scale pilot work.
#Fintech#CryptoAssets#CBDC#DFC
·finance.sina.com.cn·
China Finance Magazine: New Opportunities for the Development of China's Legal Digital Currency
Retail Central Bank Digital Currency: Design Considerations, Rationales and Implications
Retail Central Bank Digital Currency: Design Considerations, Rationales and Implications
While CBDC technical feasibility is not yet established, this Reserve Bank of Australia paper considers some issues around its possible design, the possible rationales for issuance, and the implications of issuance. It concludes that, given the likely benefits and risks, at present there does not seem to be a strong public policy case for issuance in Australia. Nonetheless, it will be important to closely watch the experience of other jurisdictions that are considering implementing CBDC projects.
#Fintech#CryptoAssets#CBDC#DFC
·rba.gov.au·
Retail Central Bank Digital Currency: Design Considerations, Rationales and Implications
Mastercard Launches Central Bank Digital Currency Testing Platform
Mastercard Launches Central Bank Digital Currency Testing Platform
Mastercard launched a virtual testing environment for central banks to evaluate CBDC use cases. The testing platform will enable central banks to simulate the digital currency’s behavior prior to deployment. It invites collaboration from other stakeholders on the project such as central banks, commercial banks, and tech and advisory firms, to assess CBDC tech designs, validate use cases and evaluate interoperability with existing payment rails available for consumers and businesses.
#Fintech#CryptoAssets#CBDC#MasterCard#DFC
·mastercardcontentexchange.com·
Mastercard Launches Central Bank Digital Currency Testing Platform
European central bank execs explain why CBDCs don’t need blockchain
European central bank execs explain why CBDCs don’t need blockchain
Thomas Moser, an alternate member of the governing board at Swiss National Bank, is working on a research paper that proposes a retail CBDC without blockchain. The upcoming CBDC project will preserve transaction privacy — a key feature of cash — by utilizing the technology of blind signatures instead of blockchain. The paper is co-authored with cryptographer and technology expert David Chaum and Christian Grothoff.
#Fintech#CryptoAssets#CBDC#DFC
·cointelegraph.com·
European central bank execs explain why CBDCs don’t need blockchain
Eastern Caribbean Central Bank official says CBDC is ‘foolproof’
Eastern Caribbean Central Bank official says CBDC is ‘foolproof’
The Eastern Caribbean Central Bank is inviting members of the public to register for access to its central bank digital currency (CBDC), in preparation for the second phase of its pilot. Following the first phase of the pilot, the central bank now plans to roll out the CBDC to Antigua and Barbuda, Grenada, Saint Lucia and St Kitts and Nevis. The ECCB is yet to announce the exact date of the launch.
#Fintech#CryptoAssets#CBDC#DFC
·centralbanking.com·
Eastern Caribbean Central Bank official says CBDC is ‘foolproof’
Malaysian Central Bank Exploring Digital Currency
Malaysian Central Bank Exploring Digital Currency
Bank Negara Malaysia, in its 2020 annual report, evaluates whether issuing a central bank digital currency (CBDC) is warranted in light of rising digital payments and privately issued digital assets. The text distinguishes CBDC from volatile, non‑scalable, non‑legal tender digital assets and from stablecoins whose stability and backing are uncertain, framing CBDC instead as a direct central bank liability potentially supporting faster, more resilient payments. It stresses that CBDC is an instrument, not an end, with country‑specific motivations spanning financial inclusion, payment system modernization, cross‑border efficiency, and preserving access to sovereign money. For Malaysia, robust monetary transmission, effective financial stability tools, and already efficient real‑time payments reduce immediate need, shifting focus to monitoring triggers such as cash usage, payment use of digital assets, and cross‑border CBDC developments. Open questions center on design choices that avoid disintermediation, preserve stability, and manage cyber and operational risks.
#Fintech#CryptoAssets#CBDC#DFC
·bnm.gov.my·
Malaysian Central Bank Exploring Digital Currency
ConsenSys Selected by Hong Kong Monetary Authority to Lead Phase Two of Project Inthanon-LionRock | ConsenSys
ConsenSys Selected by Hong Kong Monetary Authority to Lead Phase Two of Project Inthanon-LionRock | ConsenSys
ConsenSys has been awarded a cross-border payment network study project by the Hong Kong Monetary Authority (HKMA). The HKMA and the Bank of Thailand (BOT) signed a Memorandum of Understanding in May 2019, initiating Project Inthanon-LionRock to study the application of a wholesale central bank digital currency (CBDC) for cross-border payments. ConsenSys will work on the second implementation phase of the project, that is aimed at circumventing the correspondent banking network, allowing direct payments between banks.
#Fintech#Blockchain#CBDC#CrossBorder#ConsenSys#DFC
·consensys.net·
ConsenSys Selected by Hong Kong Monetary Authority to Lead Phase Two of Project Inthanon-LionRock | ConsenSys
The Bahamas Reveal Details, October Date of Landmark Central Bank Digital Currency Debut
The Bahamas Reveal Details, October Date of Landmark Central Bank Digital Currency Debut
The "gradual national release of Central Bank of the Bahamas (CBOB) Sand Dollar central bank digital currency (CBDC) will begin on October 20, 2020. In the first phase, authorised financial institutions (AFIs) will ready their systems with know-your-customer (KYC) and other compliance checks across low-value, personal and enterprise wallets. The CBOB said it has subjected the Sand Dollar to a "rigorous cybersecurity assessment" to overcome public fears of paying with a digital currency. Regulations surrounding the Sand Dollar will be "crystalized" in the public space over the month of October. Sand Dollar's second phase, slated for early- through mid-2021, will focus on preparing essential infrastructure services in the government and private sectors, such as utility companies, for the CBDC. https://www.centralbankbahamas.com/news/public-notices/the-sand-dollar-is-on-schedule-for-gradual-national-release-to-the-bahamas-in-mid-october-2020
#Fintech#CryptoAssets#CBDC#DFC
·coindesk.com·
The Bahamas Reveal Details, October Date of Landmark Central Bank Digital Currency Debut
ECB Applies for ‘Digital Euro’ Trademark Amid Feasibility Study
ECB Applies for ‘Digital Euro’ Trademark Amid Feasibility Study
The European Central Bank (ECB) has applied to trademark the term “digital euro” as officials prepare to release an assessment of the benefits and drawbacks of creating a digital version of the currency. The application was filed on September 22 by the ECB’s legal representatives Bock Legal, according to the website of the European Union Intellectual Property Office. An ECB spokesman confirmed the filing. https://euipo.europa.eu/eSearch/#details/trademarks/018311625
#Fintech#CryptoAssets#CBDC#DFC
·bloomberg.com·
ECB Applies for ‘Digital Euro’ Trademark Amid Feasibility Study
ECB intensifies its work on a digital euro
ECB intensifies its work on a digital euro
The European Central Bank (ECB) published a report on the possible issuance of a digital euro, prepared by the Eurosystem High-Level Task Force on central bank digital currency (CBDC) and approved by the Governing Council. A public consultation will be launched on 12 October to assess the needs of all stakeholders, as well as the benefits and challenges they expect from the issuance of a digital euro, in detail. Experimentation will start in parallel, without prejudice to the final decision. Fabio Panetta, member of the ECB’s Executive Board and Chair of the task force said “a digital euro would support Europe’s drive towards continued innovation, contribute to its financial sovereignty and strengthen the international role of the euro.”
#Fintech#CryptoAssets#CBDC#DFC
·ecb.europa.eu·
ECB intensifies its work on a digital euro
Eesti Pank is launching a research project into central bank digital currency
Eesti Pank is launching a research project into central bank digital currency
Estonia's central bank, Eesti Pank, has launched a multi-year project with Guardtime and The SW7 Group to research how technologically suitable the Estonian e-government core technology is for operating a central bank digital currency (CBDC). The aim of the two-year multi-phase project is to investigate how suitable a solution based on the KSI Blockchain, a core technology of e-government in Estonia, could be for operating central bank digital money infrastructure. It will also examine new payment solutions that could be made possible by using electronic identity and other Estonian e-government solutions.
#Fintech#CryptoAssets#CBDC#DFC
·eestipank.ee·
Eesti Pank is launching a research project into central bank digital currency
ECB Digital Euro Hub
ECB Digital Euro Hub
"Digitalisation has spread to every corner of our lives and transformed how we pay. In this new era, a digital euro would guarantee that citizens in the euro area can maintain free access to a simple, universally accepted, safe and trusted means of payment. A digital euro is not meant to replace cash, but rather to complement it. Together, they give people more choices about how to pay, and make it easier for them to do so, increasing financial inclusion."
#Fintech#CryptoAssets#CBDC#DFC
·ecb.europa.eu·
ECB Digital Euro Hub
The ECB's digital euro: anonymous or not?
The ECB's digital euro: anonymous or not?
The European Central Bank's recent report exploring the idea of issuing a retail central bank digital currency (CBDC) claims that "regulations do not allow anonymity in electronic payments and the digital euro must in principle comply with such regulations". In fact, the Fifth EU Anti-Money Laundering Directive (AML5) exempts issuers of e-money/prepaid cards from collecting customer information if user holdings do not exceed EUR50 (EUR150 for non-rechargeable stored value cards). Why did the EU build an anonymity exemption into payments law but now chooses to avoid exploiting it in potential CBDC designs?
#Fintech#CryptoAssets#CBDC#FinancialIntegrity#AMLCFT#Privacy#DFC
·jpkoning.blogspot.com·
The ECB's digital euro: anonymous or not?