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Taxonomy of digital community currency platforms
Taxonomy of digital community currency platforms
"Community currencies are used to pay for products or services within specific groups defined by geographical boundaries or specific common interests. Financial crises, social emergence in developing countries, and increased access to digital devices have stimulated a growing number of communities worldwide to develop digital currency projects. These projects use technologies ranging from traditional plastic cards to mobile phones and blockchain technologies. Following the design science research approach, this paper analyzes digital community currencies (DCCs) by developing a taxonomy based on platform architecture, governance, transactionality and virtuality. By investigating 22 DCC platforms around the world, 4 groups were distinguished: local, proprietary, commons and cyber. The identification of these four different groups of digital community currencies allows us to better discuss the potentials and limitations of each one of them. The presented taxonomy can be useful to researchers and practitioners both to explain and to design DCC platforms. Discussing each of the emerging categories from the proposed taxonomy helps us to provide insights into DCCs, offering a new theoretical frame for investigating the particular case of digital payment platforms."
#Fintech#CBDC#GovCoins#DFC
·researchgate.net·
Taxonomy of digital community currency platforms
India's Central Bank Digital Currency to be Introduced in Phased Manner
India's Central Bank Digital Currency to be Introduced in Phased Manner
The Reserve Bank of India (RBI) is continuing its work on central bank digital currency (CBDC).  According to its latest annual report "the design of CBDC needs to be in conformity with the stated objectives of monetary policy, financial stability and efficient operations of currency and payment systems... The RBI proposes to adopt a graded approach to introduction of CBDC, going step by step through stages of a proof of concept (PoC), pilots and the launch.
#Fintech#CBDC#Asia#DFC
·rbidocs.rbi.org.in·
India's Central Bank Digital Currency to be Introduced in Phased Manner
Crunchfish finalist in Reserve Bank of India’s Global Hackathon for Digital Cash on non mobile devices – Crunchfish
Crunchfish finalist in Reserve Bank of India’s Global Hackathon for Digital Cash on non mobile devices – Crunchfish
"Crunchfish was a finalist for its innovation Digital Cash on non-mobile devices, in the global hackathon “HARBINGER 2021 – Innovation for Transformation”, organized by RBI, the Reserve Bank of India. The overall objective of the hackathon was to identify and enable innovations with the potential to transform the digital payments landscape. Crunchfish participated for the problem statement – Non Mobile Digital Payment Solutions."
#Fintech#CBDC#Offline#Crunchfish#DFC
·crunchfish.com·
Crunchfish finalist in Reserve Bank of India’s Global Hackathon for Digital Cash on non mobile devices – Crunchfish
Retail CBDC and U.S. Monetary Policy Implementation: A Stylized Balance Sheet Analysis
Retail CBDC and U.S. Monetary Policy Implementation: A Stylized Balance Sheet Analysis
"This paper discusses how a Federal Reserve issued retail central bank digital currency (CBDC) could affect U.S. monetary policy implementation. Using a stylized balance sheet analysis, we analyze the effect a retail CBDC could have on the balance sheets of the Federal Reserve, commercial banks, and U.S. households. Then we consider how these balance sheet changes could affect monetary policy implementation for the Federal Reserve. We illustrate that the potential effects on monetary policy implementation from a retail CBDC are highly dependent on the initial conditions of the Federal Reserve’s balance sheet. Moreover, the analysis demonstrates how the Federal Reserve may use its existing tools to manage the effects of a retail CBDC on monetary policy implementation."
#Fintech#CBDC#UnitedStates#DFC
·federalreserve.gov·
Retail CBDC and U.S. Monetary Policy Implementation: A Stylized Balance Sheet Analysis
Bank of Ghana tests CBDC integration with mobile money providers
Bank of Ghana tests CBDC integration with mobile money providers

The Central Bank of Ghana (BoG) has reportedly granted Vodafone Cash and CalBank customers the opportunity to test its online version of its central bank digital currency (CBDC), the eCedi. BoG has created online and offline wallets for eCedi but has only deployed the online pilot in the city’s capital, Accra. Meanwhile, the BoG's Governor reported that usage and uptake of the offline version of the eCedi is still being piloted in a small town called Sefwi Asafo in the Western North region.

#Fintech#CBDC#Africa#G+D#DFC
·thepaypers.com·
Bank of Ghana tests CBDC integration with mobile money providers
Central Bank Digital Currency and Financial Fragility
Central Bank Digital Currency and Financial Fragility
A recent European Central Bank (ECB) paper analyzes how the introduction of a remunerated CBDC might affect financial stability. It validates the commonly held view that higher CBDC remuneration increases depositor withdrawal incentives and thus bank fragility. Second, it identifies a contrarian force when banks raise deposit rates in response to higher CBDC remuneration to retain deposits that, in turn, reduces fragility. These opposing effects can lead to a U-shaped relation between CBDC remuneration and bank fragility.
#Fintech#CBDC#DFC
·econ.queensu.ca·
Central Bank Digital Currency and Financial Fragility
‘This Is the Usual’: Thai Central Bank Governor on CBDC Pilot Delay
‘This Is the Usual’: Thai Central Bank Governor on CBDC Pilot Delay
The Bank of Thailand (BoT) has been working on a retail central bank digital currency (CBDC), with an initial six month pilot planned for the second quarter of 2022, but it has been postponed to the fourth quarter of this year, to make sure the central bank gets it right. In terms of rationale, the BoT sees CBDCs offering more potential for the private sector to get involved and innovate, compared to the existing fast payments system. For example, programmability can't be built on a fast payment system.
#Fintech#CBDC#Asia#Thailand#DFC
·coindesk.com·
‘This Is the Usual’: Thai Central Bank Governor on CBDC Pilot Delay
Assessing the Case for Retail CBDCs: Central Banks’ Considerations
Assessing the Case for Retail CBDCs: Central Banks’ Considerations
"Many central banks around the world have been researching, experimenting, or developing central bank digital currencies (CBDCs). Although central banks in several emerging markets and developing economies have implemented or plan to implement a general-purpose, or retail, CBDC to promote financial inclusion and improve their payment systems, central banks in many advanced economies have not yet found a compelling case for a retail CBDC."
#Fintech#CBDC#DFC
·kansascityfed.org·
Assessing the Case for Retail CBDCs: Central Banks’ Considerations
Initial steps towards a central bank digital currency by the Central Bank of Brazil
Initial steps towards a central bank digital currency by the Central Bank of Brazil
This Central Bank of Brazil (BCB) note discusses the development of its central bank digital currency (CBDC). The main objective is to provide entrepreneurs with a safe and reliable environment to innovate through the use of programmability technologies, such as programable money and smart contracts. In the context of a modern payment system, already available to the Brazilian population, a full-fledged CBDC must enable new functionalities, beyond those brought by an instant payment arrangement. Therefore, the innovation tool for which the BCB envisions the greatest potential is the development of a platform for smart payments. [It will be a wholesale central bank digital currency (CBDC), transacted exclusively between the BCB and commercial banks banks to support the provision of retail financial services settled through tokenized bank deposits.]
#Fintech#CBDC#LATAM#Brazil#DFC
·bis.org·
Initial steps towards a central bank digital currency by the Central Bank of Brazil
Are There Compelling Reasons to Consider a Central Bank Digital Currency for the U.S.?
Are There Compelling Reasons to Consider a Central Bank Digital Currency for the U.S.?
A U.S. Richmond Fed article examines alternative arguments for considering a CBDC for the U.S. It points out that introducing a CBDC is unlikely to substantially improve the current U.S. money and payments system. A more compelling reason to consider a CBDC is to prepare the U.S. system against future threats, especially those associated with the rise of private and foreign digital currencies. Therefore, there appears no immediate need for the U.S. to issue a CBDC, but the U.S. needs to explore the CBDC technology now for potential future use.
#Fintech#CBDC#UnitedStates#DFC
·richmondfed.org·
Are There Compelling Reasons to Consider a Central Bank Digital Currency for the U.S.?
Technology Adoption and Leapfrogging: Racing for Mobile Payments
Technology Adoption and Leapfrogging: Racing for Mobile Payments
"Paying with a mobile phone is a cutting-edge innovation transforming the global payments landscape. Some developing countries have surprisingly overtaken advanced economies in adopting the mobile payment innovation. We construct a dynamic model with sequential payment innovations to explain this puzzle, which uncovers how advanced economies' past success in adopting card-payment technology holds them back in the mobile-payment race. Our calibrated model matches the cross-country adoption patterns of card and mobile payments and also explains why advanced and developing countries favor different mobile payment solutions. Based on the model, we conduct quantitative exercises for welfare and policy analyses."
#Fintech#MobileMoney#CBDC#DFC
·richmondfed.org·
Technology Adoption and Leapfrogging: Racing for Mobile Payments
Oman Central Bank official confirms CBDC project
Oman Central Bank official confirms CBDC project
His Excellency Taher bin Salem Al Omari, CEO of the Central Bank of Oman, confirms in his speech at the New Age of Banking Conference that work is underway on the bank’s digital currency and open banking services.
#Fintech#CBDC#MiddleEast#DFC
·laraontheblock.blogspot.com·
Oman Central Bank official confirms CBDC project
Uganda Seeks CBDC Lessons from Nigeria
Uganda Seeks CBDC Lessons from Nigeria
A delegation from Bank of Uganda (BOU) went on an "experience sharing tour" of the Central Bank of Nigeria's central bank digital currency (CBDC) e-Naira project. The BoU announced its intention to explore CBDC earlier in 2022, with key questions revolving around the rationale, for example "what issues it is going to help resolve."
#Fintech#CBDC#Africa#DFC#Uganda
·twitter.com·
Uganda Seeks CBDC Lessons from Nigeria
How digital divide threatens eNaira’s mass adoption
How digital divide threatens eNaira’s mass adoption
According to a Ventures Africa poll only 4% of Nigerian respondents have used the eNaira, and 64% haven't even heard of it. Retail merchants and traders felt the same way. Plus only 30% of merchants and traders interviewed had heard of the eNaira, and none had used it. One of the factors contributing to this may be Nigeria’s digital divide. According to the Alliance for Affordable Internet only 12% of Nigerians have access to 4G-like Internet speeds or the capacity to use the internet on a daily basis. Although the CBN has said that Nigerians without smartphone internet access will be able to transact in eNaira using basic featurephones, apps have been the predominant form of transaction.
#Fintech#CBDC#Africa#Offline#DFC
·punchng.com·
How digital divide threatens eNaira’s mass adoption
Digital Currencies and Energy Consumption
Digital Currencies and Energy Consumption
An IMF paper explores the main components and technological options that determine digital currency (DC) energy profiles. It finds that the energy consumption of non-proof-of-work (non-PoW) distributed ledger technology (DLT) platforms is orders of magnitude lower than that of PoW platforms. Also permissioned networks that exercise more control over who can join as a validator, are more energy efficient than unpermissioned networks. The paper concludes that DCs could be designed to use infrastructures that are less energy intensive than the current payment system.
#Fintech#CryptoAssets#CBDC#Technology#DFC
·imf.org·
Digital Currencies and Energy Consumption
Central Bank Digital Currencies and International Payments
Central Bank Digital Currencies and International Payments
"This paper – drawing on interviews with twenty-two senior payments professionals – documents the business processes employed in the execution of international payments and discusses how international payments might be improved through the adoption of central bank digital currencies (CBDC). This was a substantial exercise resulting in a lengthy research paper."
#Fintech#CBDC#wCBDC#CrossBorder#DFC
·papers.ssrn.com·
Central Bank Digital Currencies and International Payments
CBDC Technology Considerations
CBDC Technology Considerations
"Given the rapid pace of technological experimentation and development, and the multitude of variables at play, it can be challenging to assess the best technology choices for a new central bank digital currency (CBDC). This WEF white paper is intended to guide central banks and other decision-makers through major technology considerations for CBDC. It is divided into three parts: 1) discussion of CBDC technical design considerations given various policy goals, 2) an evaluation of the pros and cons, or trade-offs, of the use of distributed ledger technology in CBDC infrastructure, and 3) an overview of important cybersecurity risks and considerations for any CBDC."
#Fintech#CBDC#DFC
·weforum.org·
CBDC Technology Considerations
Solving CBDC's privacy problem
Solving CBDC's privacy problem
"If you were designing a CBDC you might want to create a cash-like experience for users. This is just one design decision, but it’s surprisingly tricky. There are two features in particular that define the user experience with cash: it’s anonymous and it’s authenticable. Creating a token that incorporates one of these features is straightforward. Creating a token with both features together, however, poses an interesting—though solvable—challenge for blockchains that use the UTXO model."
#Fintech#CBDC#Privacy#DFC
·r3.com·
Solving CBDC's privacy problem
CBN to introduce USSD code to boost eNaira
CBN to introduce USSD code to boost eNaira
The Central Bank of Nigeria reportedly plans to introduce the unstructured supplementary service data (USSD) code to its eNaira central bank digital currency (CBDC) platform to ensure people without smartphones, but with basic featurephones and access to mobile data, could still transact on it.
#Fintech#CBDC#USSD#Africa#DFC
·nairametrics.com·
CBN to introduce USSD code to boost eNaira
Why would anyone use a central bank digital currency?
Why would anyone use a central bank digital currency?
"Central banks will struggle to rollout CBDCs that will be widely adopted. They may not provide consumers the same benefits as today’s services; privacy is unlikely to be a game-changer; and the private sector still offers scope for innovation. Without widespread adoption, a CBDC will be an expensive failure, and will do little to advance central banks’ goals. For the EU, regulation is a more sensible way to make European payments cheaper, and more diverse, competitive and innovative."
#Fintech#CBDC#Eurozone#DFC
·cer.eu·
Why would anyone use a central bank digital currency?
IDEMIA secure wallet solution for offline CBDC payments
IDEMIA secure wallet solution for offline CBDC payments
"Built to enable an ideal banknote exchange for Central Bank Digital Currency, the IDEMIA secure offline CBDC wallet makes a highly secure digital cash experience truly available to everyone and at any time. This secure wallet allows a user to make consecutive digital offline payments with immediate settlement. The CBDC wallet user can initiate offline payments using any channel: contactless, email, QR Code, and the same terminals and standards currently used for card payments. The offline CBDC payments can be received by any device (secured or not), with or without an internet connection to the ledger."
#Fintech#CBDC#Offline#DFC
·idemia.com·
IDEMIA secure wallet solution for offline CBDC payments
Deciding on a Digital Dollar: The Necessary Steps for Canada
Deciding on a Digital Dollar: The Necessary Steps for Canada
The Centre for International Governance Innovation (CIGI) published a conference report based on an April 2022 workshop attended by Canadian and international experts (including yours truly). The discussion focused on the international backdrop and what can be learned from global leaders in central bank digital currencies (CBDCs), to determine next steps for Canada and to assess the legal and regulatory changes required to support a Canadian CBDC.
#Fintech#CBDC#Canada#DFC
·cigionline.org·
Deciding on a Digital Dollar: The Necessary Steps for Canada
Digital Currencies in Financial Networks
Digital Currencies in Financial Networks
"We introduce a digital currency, either as a central bank digital currency (CBDC) or a financial crypto asset (stablecoin), in the network of financial accounts. Simulating a shift of deposits by both households and non-financial corporations from the banking sector to the digital currency, we model the different responses of the affected institutional sectors. We find that the introduction of a digital currency generates significant adjustments in the balance sheets of all sectors, may trigger large moves in securities prices and induces changes in the network structure. The economic impacts vary depending on the design of the digital innovation, the size of the deposit shift, the channels through which the balance sheet adjustments take place and the timing of the initiative."
#Fintech#CBDC#DFC
·papers.ssrn.com·
Digital Currencies in Financial Networks
DEA provides industry insights on digital euro design to ECB
DEA provides industry insights on digital euro design to ECB
"Jürgen Schaaf stressed the importance of privacy (ranked first in the consultation on the digital euro by European citizens) and discussed different privacy options the ECB has analyzed. These options range from full anonymity to fully transparent payments to the central bank. It was argued that full anonymity will, as a preliminary view, not be a viable option as it conflicts with regulation around anti-money laundering. Nevertheless, and as stressed by some participants, since there is no CBDC regulation in place, an anonymous CBDC would not necessarily be against compliance. During the meeting, a survey about privacy was conducted amongst attendees and revealed that 50% of  participants were in favor of selective privacy, which means higher privacy for low-value transactions, an approach that has already been seen as technically feasible. 33% of the participants voted for anonymity, and 0% (!!) voted for payment transparency to an intermediary or fully transparent to the central bank. "
#Fintech#CBDC#Privacy#Offline#DFC
·blog.digital-euro-association.de·
DEA provides industry insights on digital euro design to ECB