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Bank of Japan enters second phase of CBDC experiments
Bank of Japan enters second phase of CBDC experiments
The Bank of Japan (BoJ) completed the first phase of its central bank digital currency (CBDC) proof of concept (PoC) workplan. The initial stage that started in April 2021 explored issuance, distribution and redemption. The next phase will implement additional functions and test their feasibility. Based on the PoC, if the Bank judges it necessary to step things up further, it will also consider a pilot program that involves payment service providers and end users.
#Fintech#CBDC#Japan#DFC
·ledgerinsights.com·
Bank of Japan enters second phase of CBDC experiments
US Lawmakers Introduce 'ECASH' Bill in New Push to Create a Digital Dollar
US Lawmakers Introduce 'ECASH' Bill in New Push to Create a Digital Dollar
A group of U.S. lawmakers introduced the “Electronic Currency And Secure Hardware (ECASH) Act” to direct the Treasury Secretary to develop and issue an electronic version of the U.S. dollar, with an eye to preserving privacy and anonymity in transactions. The electronic dollar would be a bearer instrument that would be held on phones or cards, and be functionally identical to physical bank notes.
#Fintech#CBDC#GovCoins#UnitedStates#DFC
·coindesk.com·
US Lawmakers Introduce 'ECASH' Bill in New Push to Create a Digital Dollar
LIFT Challenge Real Digital selects 9 projects
LIFT Challenge Real Digital selects 9 projects
The Banco Central do Brasil (BCB) selected 9 of 47 firms that applied to its Laboratory of Financial and Technological Innovations (LIFT) central bank digital currency (CBDC) solution challenge. The initiative aims to identify the fundamental characteristics of Digital Real infrastructure. The 9 firms selected were AAVE, Banco Santander, Febraban, Giesecke + Devrient, Itaú Unibanco, Mercado Bitcoin, Tecban, Vert, Visa (in association with Consensys and Microsoft.
#Fintech#CBDC#SouthAmerica#DFC
·bcb.gov.br·
LIFT Challenge Real Digital selects 9 projects
ECB publishes report on payment preferences as part of digital euro investigation phase
ECB publishes report on payment preferences as part of digital euro investigation phase
The European Central Bank (ECB) published the findings of its research on citizens’ payment habits and their attitudes towards digital payments in order to gain a deeper understanding of user preferences as part of the digital euro project. It found that citizens want universally accepted payment methods in online and physical stores across Europe, instant and contactless person-to-person payments, and a one-stop-solution that would incorporate all the current payment options into one system. Respondents, also sought guarantees against fraud and hacking, as well as secure and reliable payment authentication methods. Biometric methods of payment verification were widely supported by participants, while flexible and adjustable privacy settings were seen as desirable.
#Fintech#CBDC#Eurozone#DFC
·ecb.europa.eu·
ECB publishes report on payment preferences as part of digital euro investigation phase
Malaysia to explore both wholesale, retail CBDC
Malaysia to explore both wholesale, retail CBDC
Bank Negara Malaysia laid out its central bank digital currency (CBDC) plans in its 2021 annual report. Beyond its current participation in the Bank for International Settlements (BIS) Innovation Hub's Project Dunbar for cross border payments, it is also planning to explore a domestic wholesale CBDC later this year and a retail digital currency in 2024. https://www.bnm.gov.my/-/ar2021_en_pr
#Fintech#CBDC#Asia#DFC
·ledgerinsights.com·
Malaysia to explore both wholesale, retail CBDC
The Future of Digital Cash Is Not on the Blockchain
The Future of Digital Cash Is Not on the Blockchain
"A bill introduced in Congress on Monday seeks to re-create the virtues of cash, privacy and all, in digital form. The ECASH Act would direct the US government to experiment with issuing digital dollars that are stored on hardware, not in bank accounts, and can be used without an internet connection. The idea of new, surveillance-proof currency will surely face skepticism within government. But with paper money on a slow path to extinction, the case for a real digital alternative will only grow stronger."
#Fintech#CBDC#UnitedStates#Offline#DFC
·wired.com·
The Future of Digital Cash Is Not on the Blockchain
If Money Is Speech, CBDCs Should Be Tools for Freedom
If Money Is Speech, CBDCs Should Be Tools for Freedom
"“I'm skeptical about using CBDC as a spending control instrument, not just because I think it might undermine its attractiveness, and may even create unintended opposition,” John Kiff, ​​a former senior financial sector expert at the International Monetary Fund, wrote in an email. He added that such restricted use of CBDCs would hamper fungibility, “and for me fungibility is a core CBDC characteristic.”"
#Fintech#CBDC#UnitedStates#Offline#DFC
·coindesk.com·
If Money Is Speech, CBDCs Should Be Tools for Freedom
The Treasury Option: How the US can achieve the financial inclusion benefits of a CBDC now
The Treasury Option: How the US can achieve the financial inclusion benefits of a CBDC now
"Our proposal for Treasury Accounts would provide low cost, no-frills payment services and encourage the accumulation of emergency savings reserves.  The breadth of the eligibility criteria would need to be determined, but they would be designed to meet the needs of low-income individuals and particularly the unbanked and underbanked, leveraging the experiences that the Department has gained working with fintech firms and non-profit groups during the Pandemic. "
#Fintech#CBDC#UnitedStates#GovCoins#DFC
·brookings.edu·
The Treasury Option: How the US can achieve the financial inclusion benefits of a CBDC now
Crunchfish makes Digital Cash quantum safe – Crunchfish
Crunchfish makes Digital Cash quantum safe – Crunchfish
"Crunchfish has applied for a Swedish patent protecting Digital Cash by combining two different data integrity schemes. First, payments are negotiated offline by short-range data communication between payer and payee communication devices using a quantum-secure cryptographic key as a shared secret. Successfully negotiated offline payments are stored locally and securely in the devices. Subsequently, payment settlement by broadband data communication is secured by signing the settlement request with another quantum secure cryptographic key."
#Fintech#CBDC#Offline#Quantum#DFC
·crunchfish.com·
Crunchfish makes Digital Cash quantum safe – Crunchfish
Small Digital Euro Payments Won’t Need Laundering Checks, ECB Official Says
Small Digital Euro Payments Won’t Need Laundering Checks, ECB Official Says
European Central Bank (ECB) Executive Board member Fabio Panetta said that, although a fully anonymous digital euro is not a viable option from a public policy perspective, "a greater degree of privacy could be considered for lower-value online and offline payments... which are usually low risk in terms of money laundering, terrorism financing and violations of relevant EU law". The ECB is "therefore exploring an offline functionality whereby holdings, balances and transaction amounts would not be known to anyone but the user [but] these balances and private offline payments would have an upper limit".
#Fintech#CBDC#Offline#Eurozone#DFC
·coindesk.com·
Small Digital Euro Payments Won’t Need Laundering Checks, ECB Official Says
Low smartphone penetration hits CBK’s digital shilling plan
Low smartphone penetration hits CBK’s digital shilling plan
Central Bank of Kenya Governor Patrick Njoroge has reportedly warned that lack of access to smartphones by more than half of mobile users in the country will hamper the rollout of its proposed central bank digital currency (CBDC) that requires access to the Internet. Of course readers of this blog know that the Governor has been misinformed, as there are a number of available CBDC platforms that do not require smartphones, including those of Celo, Roberto Giori and WhisperCash.
#Fintech#CBDC#Africa#DFC
·businessdailyafrica.com·
Low smartphone penetration hits CBK’s digital shilling plan
China Expands Digital Yuan Trials to More Cities
China Expands Digital Yuan Trials to More Cities
The People's Bank of China (PBOC) said it will expand its digital yuan trial to more areas from the current 11 cities and regions, and conduct “deep research” of the impact on the country’s financial system. Trials have taken place in Shenzhen, Suzhou, Xiong’an, Chengdu, Shanghai, Hainan, Changsha, Xi’an, Qingdao, Dalian and at the 2022 Winter Olympic Games in Beijing and Zhangjiakou. Tianjin, Chongqing, Guangzhou, Fuzhou, Xiamen, Hangzhou, Ningbo, Wenzhou, Huzhou, Shaoxing and Jinhua will be added to the list of trial cities.
#Fintech#CBDC#China#DFC
·bloomberg.com·
China Expands Digital Yuan Trials to More Cities
Blueprint for a digital wallet
Blueprint for a digital wallet
Rosa Giovanna Barresi provides a comprehensive analysis of the latest digital euro news from the European Central Bank based on recent speeches by Fabio Panetta, Chair of the Eurosystem High-Level Task Force on Central Bank Digital Currency. The investigation phase of the project started on July 14, 2021, and was intended to run until Q3 2023. Design-related decisions will be finalized by the beginning of 2023 and the following months will be spent in developing a basic prototype.
#Fintech#CBDC#Eurozone#DFC
·linkedin.com·
Blueprint for a digital wallet
Agent-Based Simulation of Central Bank Digital Currencies
Agent-Based Simulation of Central Bank Digital Currencies
"This paper presents a multi-period agent-based model for the study of macro-financial effects related to the introduction of a retail Central Bank Digital Currency (CBDC). Calibrating it with aggregate statistics of the German retail payment market, we exemplify how the model can be used to quantify the impact of a CBDC on i) the usage of alternative means of payments, ii) the composition of consumer's wealth, and iii) the banking sector disintermediation. "
#Fintech#CBDC#FinancialStability#DFC
·papers.ssrn.com·
Agent-Based Simulation of Central Bank Digital Currencies
European Commission targeted consultation on a digital euro
European Commission targeted consultation on a digital euro
The European Commission (EC) is laying the groundwork for the possible introduction of a digital euro, issuing a targeted consultation aimed at collecting information on expected impacts on key industries (financial intermediation, payment services, merchants), users (consumer associations, retailers’ associations), chambers of commerce and other stakeholders in international trade. This is part of a digital euro impact assessment that will inform the development of supporting legislation and regulations.
#Fintech#CBDC#Eurozone#DFC
·ec.europa.eu·
European Commission targeted consultation on a digital euro
New report from the e-krona pilot project
New report from the e-krona pilot project
Phase 2 of the Riksbank's e-krona central bank digital currency (CBDC) project is now complete. Proof of concept work included investigating how banks and other payment service providers could be integrated into an e-krona network (in collaboration with Handelsbanken and Tietoevry) and whether and how an e-krona might function off-line.  The tests have shown, for instance, that it is possible to integrate a potential e-krona into the internal systems the banks have today, and this would make it possible for their customers to exchange money in their bank account for e-kronor, and vice versa. The tests of the R3 Corda-based technical solution have also shown that it would be possible to transact in e-krona when temporarily offline.
#Fintech#CBDC#Sweden#DFC
·riksbank.se·
New report from the e-krona pilot project
e-CNY now a payment option on WeChat Pay in all pilot areas
e-CNY now a payment option on WeChat Pay in all pilot areas
WeChat can now open digital yuan wallets by registering through Tencent-backed WeBank, so they can make payments and transfer money digital yuan directly within WeChat. The expanded feature comes after the People’s Bank of China (PBoC) recently expanded the e-CNY pilot areas to 23 cities and special zones.
#Fintech#CBDC#China#DFC
·forkast.news·
e-CNY now a payment option on WeChat Pay in all pilot areas
Namibia's central bank plans to introduce digital currency
Namibia's central bank plans to introduce digital currency
Namibia's central bank will be publishing a central bank digital currency (CBDC) consultation paper in order to elicit feedback from interested parties. Bank of Namibia Governor Johannes Gawaxab reportedly said at the launch's Q&A session that surging cryptocurrencies "raised the possibility of a financial world operating outside the control of governments and central banks. There is thus a need for central banks to have a clear digital currency agenda to reinforce central bank  authority over money and maintain control over the payment system."
#Fintech#CBDC#Africa#DFC
·bon.com.na·
Namibia's central bank plans to introduce digital currency
CLabs to Work With eCurrency to Integrate CBDCs With DeFi
CLabs to Work With eCurrency to Integrate CBDCs With DeFi
CLabs, the organization behind the Celo ecosystem will be working with central bank digital currency (CBDC) platform vendor eCurrency. Through the partnership, central banks that are trialing or launching CBDCs will be able to use the Celo blockchain to allow end users access to decentralized finance (DeFi) products.
#Fintech#CBDC#eCurrency#Celo#DFC
·coindesk.com·
CLabs to Work With eCurrency to Integrate CBDCs With DeFi
BSP continues to focus on wholesale digital currency
BSP continues to focus on wholesale digital currency
Bangko Sentral ng Pilipinas (BSP), in its 2021 Annual Report, reiterated its assessment that a wholesale central bank digital currency (CBDC) may be more helpful in addressing frictions that affect the efficiency and safety of wholesale payments involving cross-border fund transfers, equity securities transactions settlement and intraday liquidity facilities.
#Fintech#CBDC#wCBDC#Asia-Pacific#DFC
·bsp.gov.ph·
BSP continues to focus on wholesale digital currency
Central Bank of Iran Shares Details About Digital Rial Project
Central Bank of Iran Shares Details About Digital Rial Project
The Central Bank of Iran (CBI) reportedly informed banks and other credit institutions about regulations related to the minting and distribution of the crypto riyal central bank digital currency (CBDC). The distributed ledger technology based system will be maintained by authorized financial institutions and capable of implementing smart contracts.
#Fintech#CBDC#MiddleEast#DFC
·news.bitcoin.com·
Central Bank of Iran Shares Details About Digital Rial Project
Central bank digital currencies: a new tool in the financial inclusion toolkit?
Central bank digital currencies: a new tool in the financial inclusion toolkit?
The Bank for International Settlements and World Bank published a paper on potential central bank digital currency (CBDC) impacts on financial inclusion. It concludes that a CBDC alone may not address financial inclusion challenges, but it could play a role as part of a broader suite of tools. The development of an acceptance ecosystem will be required, which will allow for the seamless exchange between digital and physical forms of currency. Significant and wide-reaching financial and digital literacy activities will also be required if a CBDC is to be afforded the same levels of trust currently enjoyed by other forms of central bank money. Also relevant are including the entry of non-banks and new business models, and applying tiered user onboarding approaches, introducing fast payment services, the use of open banking and APIs to enable efficient interfaces, and ensuring fair, transparent and risk-based access criteria for access to payment systems and financial infrastructures.
#Fintech#CBDC#BIS#DFC
·bis.org·
Central bank digital currencies: a new tool in the financial inclusion toolkit?
DTCC's Project Lithium to assess implications of CBDC on market infrastructure
DTCC's Project Lithium to assess implications of CBDC on market infrastructure
The Depository Trust and Clearing Corporation (DTCC) is developing a prototype to test the ability of US clearing and settlement infrastructure to support a Fed-issued CBDC using a distributed ledger technology (DLT) platform. Project Lithium will measure the benefits of a CBDC and inform the future design of the Depository's clearing and settlement offerings. It will also explore how a CBDC could enable atomic settlement, a conditional settlement that occurs if delivery and payment are both received at the same time.
#Fintech#CBDC#wCBDC#DTCC#UnitedStates#DFC
·finextra.com·
DTCC's Project Lithium to assess implications of CBDC on market infrastructure
TON Foundation In Talks With Three African Countries To Launch Stablecoins
TON Foundation In Talks With Three African Countries To Launch Stablecoins
Three African country governments are working on a cross-border stablecoin-based payment system with The Open Network (TON), a blockchain designed by the founders of the Telegram messaging platform. The three countries are Republic of Congo (Ministry of Posts, Telecommunications and Digital Economy) Cameroon (Ministry of Posts and Telecommunications), and the Democratic Republic of Congo (Ministry of Digital Economy). Cameroon and the Republic of Congo are part of the Central African Economic and Monetary Community (CAEMC), a six-nation union that shares a common currency (CFA franc) and central bank
#Fintech#CBDC#GovCoins#Africa#Telegram#DFC
·forbes.com·
TON Foundation In Talks With Three African Countries To Launch Stablecoins
Central Bank Digital Currencies Are About Control – They Should Be Stopped
Central Bank Digital Currencies Are About Control – They Should Be Stopped
"This feature–making electronic transactions using a liability of the Federal Reserve–is central to why Congress should make sure that the Fed never issues a retail CBDC. The problem is that the federal government, not privately owned commercial banks, would be responsible for issuing deposits. And while this fact might seem like a feature instead of bug, it’s a major problem for anything that resembles a free society. (Paper currency is also a liability of the Fed, but that fact means very little with freely circulating fiat money, especially when private banks issue deposits.)"
#Fintech#CBDC#UnitedStates#DFC
·forbes.com·
Central Bank Digital Currencies Are About Control – They Should Be Stopped
Central Bank Digital Loonie: Canadian Cash for a New Global Economy
Central Bank Digital Loonie: Canadian Cash for a New Global Economy
"We propose a two-phased approach. In the first phase, the BoC introduces a centralized platform as a public-good infrastructure that establishes digital cash and ensures global/domestic interoperability. In this phase, e-KYC-based authentication leverages existing private/public sector solutions but also safeguards users' privacy/data against third-party commercial interests while complying with AML/CFT. In the second phase, the BoC will expand the platform to an enterprise-level permissioned blockchain. This shared resource will transform CBDLs into "programmable e-money" within a “social operating system” that will enable Canadians to operate, innovate, compete, and thrive in this new global digital economy."
#Fintech#CBDC#Canada#DFC
·papers.ssrn.com·
Central Bank Digital Loonie: Canadian Cash for a New Global Economy