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Central African Republic Dives Into Crypto With The Sango
Central African Republic Dives Into Crypto With The Sango
Central African Republic (CAR) President Faustin Archange Touadera reportedly announced the creation of the Sango Coin and a zero-taxation crypto-hub. The currency is named after Sango, which with French is one of the country’s two official languages. Through a platform called Crypto Island, the Sango will become “the catalyst for tokenizing (CAR’s) vast natural resources,” Touadera declared, providing no timeline or other details. In April Touadera’s office had announced that the CAR had adopted Bitcoin as legal tender alongside the CFA franc, a currency the country shares with five other central African economies.
#Fintech#CryptoAssets#CBDC#Africa#DFC
·barrons.com·
Central African Republic Dives Into Crypto With The Sango
ECCB launches DCash in Anguilla
ECCB launches DCash in Anguilla
The Eastern Caribbean Central Bank (ECCB) DCash central bank digital currency (CBDC) pilot expanded to Anguilla, and now the digital version of the EC currency is legal tender in all eight ECCB member countries. Liberty Co-operative Credit Union (LCCU) is the first financial institution in Anguilla to join the Pilot and will begin processing DCash applications for both merchant and consumer wallets for their customers. Citizens and residents who are not customers of LCCU may obtain a DCash value-based wallet by signing up through the app.
#Fintech#CBDC#Caribbean#DFC
·eccb-centralbank.org·
ECCB launches DCash in Anguilla
ECCB 2021-2022 Annual Report and Statement of Accounts
ECCB 2021-2022 Annual Report and Statement of Accounts
According to the just-released ECCB Annual Report, As at end-March, the value of DCash in circulation amounted $2.27 million, or 0.16% of the $1,407.14 million currency in circulation. More than 20 of the region’s financial institutions and 11 agencies, both groups being key channels for customer onboarding, are now participating in the pilot. Also there has seen steady increase in the merchant base. The second phase of the pilot will see the introduction of government-to-consumer (G2C) payments and an e-commerce functionality to support wider use of DCash.
#Fintech#CBDC#Caribbean#DFC
·user-fc5crhc.cld.bz·
ECCB 2021-2022 Annual Report and Statement of Accounts
Central bank digital currency (CBDC) – why go slow - FinTech Futures
Central bank digital currency (CBDC) – why go slow - FinTech Futures
"National currency is a foundational element in society. A switch from material coins and banknotes, and their counting balance to a novel cyber entity comprised of a string of bits, is a big move with a lot of promise, alas facing a myriad of risks and unintended consequences. It is therefore advisable to develop a risk-mitigation strategy for this initiative."
#Fintech#CBDC#DFC
·fintechfutures.com·
Central bank digital currency (CBDC) – why go slow - FinTech Futures
Minutes of the CBDC Technology Forum
Minutes of the CBDC Technology Forum
"A Forum Member presented a view on why offline functionality should be a key feature of CBDC. The presentation exposed why offline settlement finality was important in a world where physical cash usage is diminishing. The presenter noted that offline settlement finality offered benefits in terms of availability, throughput and operational infrastructure costs, where existing real time (online) settlement systems encountered the biggest challenges. The presentation also mentioned that, without offline finality, any CBDC system would be difficult to differentiate from any other real time payment system. The presenter also mentioned drawbacks of offline systems, including the higher risk of counterfeiting and double spending due to added technical complexity."
#Fintech#CBDC#Offline#UnitedKingdom#DFC
·bankofengland.co.uk·
Minutes of the CBDC Technology Forum
Essays on Digital Currencies and Monetary Policy
Essays on Digital Currencies and Monetary Policy
This dissertation by Jonas Gross studies issues related to digital currencies and monetary policy. In particular, it analyzes the determinants of the monetary policy of the European Central Bank (ECB) and examines design aspects of central bank digital currencies (CBDCs), e.g., related to financial stability, monetary policy, and privacy. For example, it finds that CBDCs crowd out bank deposits and negatively affect bank funding, but this crowding-out effect can be mitigated if the central bank chooses to provide additional central bank funds or to disincentivize large-scale CBDC accumulation via low or potentially even negative interest rates (if the CBDC is remunerated).
#Fintech#CBDC#DFC
·epub.uni-bayreuth.de·
Essays on Digital Currencies and Monetary Policy
Experts invited to join technical talks on digital euro
Experts invited to join technical talks on digital euro
The European Central Bank (ECB) is inviting technology experts to take part in online technical talks to explore options for the design of a central bank digital currency. The talks will focus on the large-scale application of privacy-enhancing technologies in settlement of retail payments. For example, how can the payment asset issuer exert control over settlement rules and maintain adequate, tamper-proof evidence of the amounts in circulation, while also minimizing the accessibility of sensitive information? The talks will be held at expert level as closed sessions with members of the ECB’s digital euro project team.
#Fintech#CBDC#Privacy#Eurozone#DFC
·ecb.europa.eu·
Experts invited to join technical talks on digital euro
UK Digital Pound Won't Work Like Cash Banknotes, Bank of England Says on CBDC
UK Digital Pound Won't Work Like Cash Banknotes, Bank of England Says on CBDC
Deputy Governor Jon Cunliffe reportedly said that the Bank of England (BoE) is unlikely to offer a digital pound that works like banknotes, opting instead for an instrument managed through some sort of account, reflecting concerns that it could be used in crime and money laundering. The BoE plans to release a consultation paper at the end of the year about how a retail central bank digital currency (CBDC) might look. Cunliffe said it’s unlikely that any digital pounds will be issued within the next three years, that it’s more likely in five or more years.
#Fintech#CBDC#Offline#UnitedKingdom#DFC
·bloomberg.com·
UK Digital Pound Won't Work Like Cash Banknotes, Bank of England Says on CBDC
BoJ Liaison and Coordination Committee on Central Bank Digital Currency Interim Report
BoJ Liaison and Coordination Committee on Central Bank Digital Currency Interim Report
The Bank of Japan (BoJ) published an English version of its Liaison and Coordination Committee on Central Bank Digital Currency interim report. While the BOJ “currently has no plan to issue CBDC, the BOJ considers it important to prepare thoroughly to respond to changes in circumstances in an appropriate manner”.  The report noted the strong preference for cash and high ratio of bank account holding in Japan, as reasons for cautiousness. However, as privately-issued digital currencies proliferate, a CBDC might be called for to provide broadly secure and neutral payment instruments to avoid fragmentation and monopolization of payment services, and to enable private businesses to utilize these as a source for creating new services.
#Fintech#CBDC#Japan#DFC
·boj.or.jp·
BoJ Liaison and Coordination Committee on Central Bank Digital Currency Interim Report
The Unbundling of Fiat Currency
The Unbundling of Fiat Currency
"A CBDC analogous to a digital form of paper money—a digital bearer instrument, would not require intermediaries for most transactions carried out by consumers today. Payments for everyday purchases could be done without revealing the identities of the parties involved in the same way that users may choose to pay in cash. This would help combat cybercrime while freeing up resources to identify truly illicit activities."
#Fintech#CBDC#DFC
·linkedin.com·
The Unbundling of Fiat Currency
July 4 1995 Mondex Launch Live
July 4 1995 Mondex Launch Live
"Somewhat ahead of its time, Mondex was a peer-to-peer proposition, which we’ll come back to later on. This meant that the value was transferred directly from one chip to another with no intermediary and therefore no cost. In other words, people could pay each other without going through a third party and without paying a charge."
#Fintech#Offline#CBDC#Payments#DFC
·blog.dgwbirch.com·
July 4 1995 Mondex Launch Live
Options for access to and interoperability of CBDCs for cross-border payments
Options for access to and interoperability of CBDCs for cross-border payments
The Bank for International Settlements Innovation Hub, Committee on Payments and Market Infrastructures, International Monetary Fund and the World Bank assessed different options for cross-border access and interoperability of central bank digital currencies (CBDCs). They highlight that CBDCs currently have a key benefit in being able to consider cross-border functionality already during the initial development phase, but this "clean slate" advantage has an expiry date. International cooperation and coordination are needed in the early stages of CBDC design. In addition, any system must be built with the flexibility to adapt both to a changing world and the different CBDC designs likely to be chosen by central banks.
#Fintech#CBDC#BIS#IMF#CPMI#WorldBank#CrossBorder#Interoperability#DFC
·bis.org·
Options for access to and interoperability of CBDCs for cross-border payments
South Korea Ready to Test its CBDC with Commercial Banks
South Korea Ready to Test its CBDC with Commercial Banks
The Bank of Korea (BOK) wants to commence real-world testing for its prototype central bank digital currency (CBDC) with 10 domestic commercial banks in the second half of the year. Until now, the BOK CBDC work has been limited to proof-of-concept experiments, starting with basic functions such as minting, issuance, distribution, and redemption from August to December last year, and payment, digital asset transactions, and cross-border remittances from January to June this year. Now the central bank wants to know whether the prototype is compatible with various banks’ IT platforms and wants to investigate possible interoperability-related issues
#Fintech#CBDC#Asia#DFC
·bok.or.kr·
South Korea Ready to Test its CBDC with Commercial Banks
France Starts Second Stage of Wholesale CBDC Experiments
France Starts Second Stage of Wholesale CBDC Experiments
The Banque de France (BdF) has kicked off the second phase of experimentation into a wholesale CBDC, with an eyer towards being ready to introduce central bank money as a settlement asset as early as 2023, with the implementation of the European pilot regime. Over the past year, the central bank has successfully completed the first phase of its experimentation program, comprising nine experiments with the private sector and with other public actors, with a focus on cross-borer payments and tokenized securities settlement. Now the BdF wants to get closer to a viable prototype, testing it in practice with more private actors and more foreign central banks in the second half of 2022 and in 2023.
#Fintech#CBDC#Eurozone#wCBDC#CrossBorder#Settlement#France#DFC
·banque-france.fr·
France Starts Second Stage of Wholesale CBDC Experiments
BIS Innovation Hub and Bank Indonesia announce finalists of G20 TechSprint CBDC challenge
BIS Innovation Hub and Bank Indonesia announce finalists of G20 TechSprint CBDC challenge
The Bank for International Settlements (BIS) and Bank Indonesia announced the 21 shortlisted finalists for the G20 TechSprint CBDC challenge. The shortlisted teams now have until the end of August to complete their prototypes, which will then be judged by an independent expert panel convened by Bank Indonesia. Winners for each of the three categories will be announced in October ahead of the G20 Summit. Among the shortlisted were BitMint, R3, Ripple, S.e.A. (Stellar, eCurrency and ANZ), Bitt-IDEMIA, Crunchfish, and Giesecke+Devrient (G+D) Filia.
#Fintech#CBDC#BIS#DFC
·bis.org·
BIS Innovation Hub and Bank Indonesia announce finalists of G20 TechSprint CBDC challenge
Issuing Central Bank Digital Currency on Algorand
Issuing Central Bank Digital Currency on Algorand

Issuing Central Bank Digital Currency on Algorand

The Algorand Foundation published a paper that describes its approach to issuing retail central bank digital currency (CBDC), including a detailed overview of relevant design considerations and examples of use cases facilitated by the Algorand platform.

#Fintech#CBDC#Algorand#DFC
·info.algorand.com·
Issuing Central Bank Digital Currency on Algorand
Central Bank Digital Currency: Stability and Information
Central Bank Digital Currency: Stability and Information
The U.S. Office of Financial published a paper that studies how introducing a central bank digital currency (CBDC) would affect the stability of the banking system. It presents a model that captures concerns that the option to hold CBDC can increase the incentive for depositors to run on weak banks. It highlights two countervailing effects. First, banks do less maturity transformation when depositors have access to CBDC, which leaves them less exposed to runs. Second, monitoring the flow of funds into CBDC allows policymakers to identify and resolve weak banks sooner, which also decreases depositors’ incentive to run. The paper's results suggest that a well-designed CBDC may decrease rather than increase financial fragility.
#Fintech#CBDC#UnitedStates#DFC
·financialresearch.gov·
Central Bank Digital Currency: Stability and Information
CBDC Role in Strengthening Implementation of Central Bank Mandate
CBDC Role in Strengthening Implementation of Central Bank Mandate
Bank Indonesia continues to research central bank digital currency (CBDC) and plans to issue a white paper at the end of this year concerning the development of a Digital Rupiah. The central bank's CBDC exploration has six salient objectives: (i) providing a risk-free means of digital payment using central bank money, (ii) mitigating the risk of non-sovereign digital currency, (iii) expanding payment system coverage and efficiency, including cross-border transactions, (iv) expanding and accelerating financial inclusion, (v) providing new monetary policy instruments, and (vi) facilitating the distribution of fiscal subsidies.
#Fintech#CBDC#Asia#DFC
·bi.go.id·
CBDC Role in Strengthening Implementation of Central Bank Mandate
Environmental Implications of a Central Bank Digital Currency (CBDC)
Environmental Implications of a Central Bank Digital Currency (CBDC)
The World Bank has published a paper that explores the environmental implications of central bank digital currency (CBDC) and highlights ecological footprint differences between CBDC and other payment methods. As the legitimacy of CBDC is backed by the trust of central banks, it does not need to prove its legitimacy through energy-intensive consensus or mining mechanisms, so its energy consumption is low. CBDC can also be designed to use various systems, such as real time gross settlement systems, distributed ledger technology, or a mixture of both.
#Fintech#CBDC#Environment#DFC
·openknowledge.worldbank.org·
Environmental Implications of a Central Bank Digital Currency (CBDC)
South Africa completes CBDC DLT security token trials
South Africa completes CBDC DLT security token trials
In April the South African Reserve Bank (SARB) announced the results of the second phase of its Project Khoka 2 (PK2) wholesale central bank digital currency (CBDC) trial, Project Khokha 2, which commenced in February 2021. PK2 explored the impact of distributed ledger technology (DLT) on trading, clearing and settlement by issuing a SARB debenture on a DLT network and enabling two DLT-based payment options in the form of a wholesale CBDC (wCBDC) token and a wholesale digital settlement token (wToken). There was one network where the wCBDC was issued and a second one – the Khokha Hub, where the wToken and tokenized bond were issued and traded. A bridge was used to port the wCBDC to the second network to settle the primary bond issuance transaction.
#Fintech#CBDC#wCBDC#Africa#Settlement#DFC
·resbank.co.za·
South Africa completes CBDC DLT security token trials
Issuance of a digital currency of the Central Bank in Chile
Issuance of a digital currency of the Central Bank in Chile
The Central Bank of Chile has opened an online survey on its CBDC project. The poll is aimed at several audiences, including the financial sector and academics; specialists in payments and technological services; and the general public. [Read more] This initiative is expected to deepen the evaluation process started in May with the publication of a first report on CBDC issuance. A second report will be published at the end of this year or beginning of 2023.
#Fintech#CBDC#SouthAmerica#DFC#Chile
·bcentral.cl·
Issuance of a digital currency of the Central Bank in Chile
Haitian central bank has requested IMF CBDC technical assistance
Haitian central bank has requested IMF CBDC technical assistance
The Banque de la République d'Haïti has requested technical assistance from the IMF to help address the risks associated with CBDC deployment. Support has been received from specialized foreign firms and collaboration has been initiated with countries that have already launched a CBDC, particularly in the Caribbean.
#Fintech#CBDC#Caribbean#Haiti#DFC
·imf.org·
Haitian central bank has requested IMF CBDC technical assistance
Côte d’Ivoire exploring issuing CBDC
Côte d’Ivoire exploring issuing CBDC
Côte d’Ivoire authorities are "cautiously exploring the benefits of a CBDC and the IMF said it stands ready to offer capacity development support. [Read more] However, it's unclear how that would work because Côte d’Ivoire doesn't have it's own central bank. It's part of the West African Monetary Union whose currency is the CFA Franc, issued by the Banque Centrale des États de l'Afrique de l'Ouest.
#Fintech#CBDC#Africa#DFC
·imf.org·
Côte d’Ivoire exploring issuing CBDC
The impact of a Digital Rupee on liquidity management and monetary policy transmission in Mauritius
The impact of a Digital Rupee on liquidity management and monetary policy transmission in Mauritius

The Bank of Mauritius is considering CBDC issuance, and as part of its recent Article IV consultation, the IMF published a paper that assesses the potential impact on liquidity management and monetary policy transmission of various designs of Mauritian Digital Rupee. It finds that issuing a CBDC, especially when remunerated, may not bring clear advantages for liquidity management and may lead to complications for the transmission of the policy rate to market rates. A simpler option of non-interest-bearing retail Digital Rupee could be a safer option as it would lead to a lower risk of interference with policy transmission.

#Fintech#CBDC#Africa#DFC
·imf.org·
The impact of a Digital Rupee on liquidity management and monetary policy transmission in Mauritius
Consumer attitudes to CBDC: Considerations for policy-makers
Consumer attitudes to CBDC: Considerations for policy-makers
A survey conducted by Ipsos MORI on behalf of OMFIF and G+D which provides insights into consumers’ attitudes towards new digital forms of payments, including CBDC, in four countries: Germany, Indonesia, Nigeria and the US. The survey findings reveal a sharp difference in attitudes towards CBDCs between consumers in developed and developing countries. In Nigeria – where a pilot CBDC project was launched in October – 91% of respondents say they are likely to use CBDCs, with 60% of consumers saying so in Indonesia. However, these figures fall to just 24% in the US and 14% in Germany. This suggests CBDCs could offer a ‘leapfrog’ moment in payments in emerging markets, where systems are less developed, compared to countries such as the US and Germany, where consumers have many established payment options already.
#Fintech#CBDC#G+D#OMFIF#DFC
·omfif.org·
Consumer attitudes to CBDC: Considerations for policy-makers
Whatever The Public Think About Digital Currency, It Is Coming
Whatever The Public Think About Digital Currency, It Is Coming
It will not be enough for central banks to develop an online digital currency transaction network while treating cash as the offline back-up. It should be offline digital cash that is the backup that continues to work when there is no internet, no mobile network and no electricity network. This is one of the aspects of central bank digital currency (CBDC) design that most interests me. Now, obviously, there must be limits on the amount that can be stored in wallets or transferred between them (for all sorts of reasons, ranging from security to consumer protection) but it is entirely feasible to implement schemes that allow for offline device-to-device transfer so that people can still buy a cup of tea when the internet is down or still buy food at the supermarket when the electricity is out. This is the smart way forward for digital currency.
#Fintech#CBDC#Offline#DFC
·forbes.com·
Whatever The Public Think About Digital Currency, It Is Coming