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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
Monetary policy and financial stability implications of central bank digital currencies
Monetary policy and financial stability implications of central bank digital currencies
This article, written by European Central Bank (ECB) staff, is a nice summary of recent research on the possible implications for financial stability and monetary policy of retail central bank digital currency (CBDC). It concludes that careful design will be crucial in maximizing the benefits of CBDCs while managing any unintended consequences. The article also identifies avenues for further research that could usefully inform future policy decisions on such currencies.
#Fintech#CBDC#FinancialStability#DFC
·voxeu.org·
Monetary policy and financial stability implications of central bank digital currencies
Central Banks Question Whether CBDCs Need Crypto Tech
Central Banks Question Whether CBDCs Need Crypto Tech
"There has been a widespread assumption that central bank digital currencies (CBDCs) would be built on blockchain — or at least the distributed-ledger technology (DLT) it’s based on. However, a growing number of central bankers and CBDC designers are casting doubt on the need for the technology built for Bitcoin, noting that existing technologies may serve just as well and that blockchain does bring some weaknesses to the table."
#Fintech#CBDC#DFC
·pymnts.com·
Central Banks Question Whether CBDCs Need Crypto Tech
DigiTally: Piloting Offline Payments for Phones
DigiTally: Piloting Offline Payments for Phones
"We developed a prototype system, DigiTally, which lets users make offline payments by copying short strings of digits from one mobile handset to another. Offline payments are already used for electricity (both in prepayment meters and pay-as-you-go solar); can we extend them into a general-purpose payment system, to increase service resilience in the face of network congestion or outage, and provide service to currently excluded areas?"
#Fintech#CBDC#Offline#DFC
·atc.usenix.org·
DigiTally: Piloting Offline Payments for Phones
European Commission receives more than 10,000 public comments amid digital euro consultation
European Commission receives more than 10,000 public comments amid digital euro consultation
The European Commission (EC) has received about 10,000 public comments so far on its call for evidence regarding a digital euro, which is to run from April 5 to June 14 and is aimed at getting feedback for the possible establishment and regulation of a digital currency as a new form of central bank money. During a similar period, the EC is also conducting a consultation targeted at relevant authorities and experts, to help policymakers consider issues including users’ needs and expectations for a digital euro, a digital euro’s role for the EU’s retail payments and digital economy, the application of money-laundering rules, privacy and data protection aspects and international payments.
#Fintech#CBDC#Eurozone#DFC
·theblockcrypto.com·
European Commission receives more than 10,000 public comments amid digital euro consultation
Central Bank Digital Currencies Are Doomed To Fail - And Here's Why
Central Bank Digital Currencies Are Doomed To Fail - And Here's Why
"The biggest obstacles to CBDC is skepticism and reluctance among the end users, since CBDCs will never be designed with the needs and desires of the users in mind (on the contrary, they're being designed in accordance to the rules of the end government)."
#Fintech#CBDC#DFC
·zerohedge.com·
Central Bank Digital Currencies Are Doomed To Fail - And Here's Why
Hardware Security Modules (HSMs) | Thales
Hardware Security Modules (HSMs) | Thales
"A hardware security module (HSM) is a dedicated crypto processor that is specifically designed for the protection of the crypto key lifecycle. Hardware security modules act as trust anchors that protect the cryptographic infrastructure of some of the most security-conscious organizations in the world by securely managing, processing, and storing cryptographic keys inside a hardened, tamper-resistant device."
#Fintech#CBDC#Offline#Thales#DFC
·cpl.thalesgroup.com·
Hardware Security Modules (HSMs) | Thales
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
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
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?
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
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.
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
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
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
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
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
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
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
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
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
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
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
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
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
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