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Lenders Are Thwarting Digital Currency’s Adoption in Nigeria
Lenders Are Thwarting Digital Currency’s Adoption in Nigeria
Nigerian lenders are reportedly impeding the use of the nation’s central bank digital currency (CBDC) because they are concerned about losing revenue from traditional banking services, according to central bank Governor Godwin Emefiele. Only about 700,000 customers have created an e-naira wallets since its introduction in October last year. E-naira-based transactions have also failed to pick up. Currently, the e-naira wallet is available to only bank customers, but the central bank is close to concluding tests with MTN Group's Nigeria unit to provide a channel to enable Nigerians without bank accounts to open e-naira wallets.
#Fintech#CBDC#Africa#DFC
·bloomberg.com·
Lenders Are Thwarting Digital Currency’s Adoption in Nigeria
IMF wants banks and payment service providers shielded in CBK digital shilling plan
IMF wants banks and payment service providers shielded in CBK digital shilling plan
The IMF published feedback on the Central Bank of Kenya central bank digital currency (CBDC) discussion paper published in February 2022. The IMF recommended that the paper emphasize that CBDC will “do no harm” to existing private-sector digital payment solutions. A poorly designed CBDC risks taking away customers of banks and other digital finance providers, increasing the cost of financing for banks, and depriving banks of valuable information they obtain through establishing customer relations.
#Fintech#CBDC#IMF#Africa#DFC
·imf.org·
IMF wants banks and payment service providers shielded in CBK digital shilling plan
Digital Rupiah Currency: Indonesia Plans Wholesale CBDC to Improve Transfers
Digital Rupiah Currency: Indonesia Plans Wholesale CBDC to Improve Transfers
Bank Indonesia Governor Perry Warjiyo reportedly said that the central bank will release the conceptual design of digital rupiah by the end of 2022. The central bank will distribute the CBDC to large banks and payment service companies to sell to smaller banks for various retail transactions. It is also considering ways to ensure it would be exchangeable across borders.
#Fintech#CBDC#Asia#wCBDC#DFC
·bloomberg.com·
Digital Rupiah Currency: Indonesia Plans Wholesale CBDC to Improve Transfers
RBI working on phased implementation of digital currency
RBI working on phased implementation of digital currency
Reserve Bank of India (RBI) Executive Director Ajay Kumar reportedly said that the central bank is working on a phased implementation of both retail and wholesale CBDC. He also said that the necessary amendment to the relevant section of the RBI Act 1934 had been made enabling the RBI to conduct pilot and subsequent issuance of CBDC.
#Fintech#CBDC#Asia#wCBDC#DFC
·theprint.in·
RBI working on phased implementation of digital currency
Barclays CBDC Hackathon 2022
Barclays CBDC Hackathon 2022
Barclays will host the "CBDC Hackathon 2022" on September 27 and 28, 2022. It will consist of a series of coding challenges that will simulate the use of central bank digital currency (CDBC) and commercial bank money. Teams of four will develop coding solutions to multiple challenges including connecting to Barclays simulation of central and commercial bank application programming interfaces (APIs). The tasks will be drawn from the Bank of England’s CBDC platform model.
#Fintech#CBDC#HackaThon#UnitedKingdom#DFC
·creativeservices.barclays·
Barclays CBDC Hackathon 2022
Central African Regional Bank Seeks Common Digital Currency
Central African Regional Bank Seeks Common Digital Currency
The Bank of Central African States has reportedly been urged by its board to introduce a common digital currency for its six member states (Cameroon, Chad, the Republic of Congo, Gabon, Equatorial Guinea and the Central African Republic). The proposal comes after the central bank’s strong opposition for the Central African Republic’s adoption of Bitcoin as legal tender this year.
#Fintech#CBDC#Africa#DFC#CentralAfricanStates
·bloomberg.com·
Central African Regional Bank Seeks Common Digital Currency
What factors determine central bank interest in CBDC?
What factors determine central bank interest in CBDC?
This paper by Bank of Indonesia staff attempts to explain the differences in central bank digital currency (CBDC) interest across emerging and advanced market countries. Based on a cross-country dataset, it shows that wholesale CBDC work is more advanced in countries with developed financial markets and greater cross-border transactions. Retail CBDC work is more advanced in countries with lower financial inclusion and a large informal economy. It further shows that different factors affect retail CBDC adoption across emerging and advanced countries
#Fintech#CBDC#Asia#DFC
·bmeb-bi.org·
What factors determine central bank interest in CBDC?
What can CBDC designers learn from asking potential users? Results from a survey of Austrian residents
What can CBDC designers learn from asking potential users? Results from a survey of Austrian residents
The Österreichische Nationalbank (ONB) published a paper that summarizes the results of a survey of 2006 Austrian residents about their central bank digital currency (CBDC) design preferences and their likelihood of using a digital euro. Respondents were satisfied with the existing payment options, and only about half expressed at least some interest in a digital euro. In terms of CBDC design, high importance was placed on security against fraud and theft, but less than a third considered privacy important
#Fintech#CBDC#Eurozone#DFC
·suerf.org·
What can CBDC designers learn from asking potential users? Results from a survey of Austrian residents
JAM-DEX officially launched through Lynk App
JAM-DEX officially launched through Lynk App
The Bank of Jamaica (BOJ) has reportedly officially launched Jamaica’s JAM-DEX central bank digital currency (CBDC)  through the Lynk app on July 25.  Lynk is currently the only transaction platform for Jamaicans to use their JAM-DEX. As part of the launch, the first 100,000 customers that signed up for JAM-DEX via the Lynk app were given an incentive bonus of $2,500 JAM-DEX in their wallets by the Government of Jamaica. https://twitter.com/lynkjamaica/status/1546630694977343494
#Fintech#CBDC#Caribbean#DFC
·jamaicaobserver.com·
JAM-DEX officially launched through Lynk App
Facilitating increased adoption of payment versus payment (PvP)
Facilitating increased adoption of payment versus payment (PvP)
"This consultative report – issued as part of the G20 cross-border payments programme – focuses on facilitating increased adoption of payment versus payment (PvP) to reduce foreign exchange settlement risk and improve cross-border payments. The report analyses the causes of non-PvP settlement, takes stock of existing and proposed new PvP solutions and suggests roles for the private and public sectors to facilitate PvP adoption."
#Fintech#CBDC#Payments#CrossBorder#wCBDC#BIS#DFC
·bis.org·
Facilitating increased adoption of payment versus payment (PvP)
CBDC: An Urgent Mandate for Digital Property
CBDC: An Urgent Mandate for Digital Property
"Not applying a digital bearer paradigm to currencies of the United States - or for that matter other nations, is no more reasonable than withholding electronic mail systems from citizens, or insisting on maintaining networks of human phone operators, with outsized and entirely unnecessary frictions and costs added to all functions of the economy." (Christian Kameir)
#Fintech#CBDC#UnitedStates#DFC
·linkedin.com·
CBDC: An Urgent Mandate for Digital Property
Seven out of ten tell Fed they don't want digital dollar: Cato Institute
Seven out of ten tell Fed they don't want digital dollar: Cato Institute
The Cato Institute analyzed responses to the Federal Reserve consultation on central bank digital currency (CBDC) and found that 66.52% of the 2,052 comments rejected a digital dollar. By excluding blank comments or those soliciting work on the project, the figure rises to 71.21%, with 11.74% in support of a CBDC, and 17.06% neutral. The most common concerns were over financial privacy, financial oppression, and the risk of disintermediating the banking system. https://www.cato.org/blog/update-two-thirds-commenters-concerned-about-cbdc
#Fintech#CBDC#UnitedStates#DFC
·ledgerinsights.com·
Seven out of ten tell Fed they don't want digital dollar: Cato Institute
Partner states bicker over who will host the East African central bank
Partner states bicker over who will host the East African central bank
In East Africa, the Protocol for the establishment of the East African Monetary Union (EAMU) was signed by the heads of state in Kampala on November 30, 2013, setting up a 10-year roadmap for attaining a single currency in 2024. But the EAC is way behind schedule in setting up relevant institutions to support a single currency, the most important being the EAMI, which was supposed to be up and running in 2015. Other institutions such as the East African Financial Services Commission, East African Statistics Bureau and the East African Surveillance, Compliance and Enforcement Commission were supposed to be operational by 2018. Member countries are also struggling to meet and comply with other macroeconomic indicators that are key to the implementation of a monetary union. These are debt-to-GDP ratio of 50 percent, fiscal deficit (including grants) of three percent of the GDP, overall inflation of eight per cent and forex reserves of 4.5 months of import cover.
#Fintech#CBDC#Africa#DFC
·theeastafrican.co.ke·
Partner states bicker over who will host the East African central bank
Tradeoffs in Permissioned vs Permissionless Blockchains: Trust and Performance
Tradeoffs in Permissioned vs Permissionless Blockchains: Trust and Performance
"We develop a model of transaction safety in permissioned and permissionless blockchains to study this tradeoff and find that in several settings there may be no tradeoff at all. With a minimal level of trust in the blockchain operators and the supporting institutions, well-designed permissioned blockchains can offer both higher operational efficiency and higher transaction security. While this minimal trust in the ``system'' is essential to the functioning of permissioned blockchains, it is also inherent in most business relationships, making permissioned blockchains well suited for enterprise applications of the technology. We explore the implications of our analysis for the design of permissioned blockchains, such as the reputation or bonding implications for their validators."
#Fintech#Blockchain#CryptoAssets#CBDC#DFC
·papers.ssrn.com·
Tradeoffs in Permissioned vs Permissionless Blockchains: Trust and Performance
Taking Digital Currencies Offline
Taking Digital Currencies Offline
"Whether any of these ideas will go into full operation is an open question, but it does seem that in many regions offline access may be a make-or-break feature for central bank digital currencies."
#Fintech#CBDC#Offline#DFC
·imf.org·
Taking Digital Currencies Offline
Japan abandons CBDC project
Japan abandons CBDC project
There are misleading stories circulating that the Bank of Japan has shut down its central bank digital currency (CBDC) project. They seem to be triggered by an Asia Times story that rehashed the July 5, 2022 report from the BoJ's Liaison and Coordination Committee on Central Bank Digital Currency, which reiterated its October 2020 position that “while the Bank of Japan currently has no plans to issue CBDC, from the viewpoint of ensuring the stability and efficiency of the overall payment and settlement systems, the Bank considers it important to prepare thoroughly to respond to changes in circumstances in an appropriate manner.” So the project lives on! https://www.boj.or.jp/en/announcements/release_2022/rel220705b.pdf
#Fintech#CBDC#Japan#DFC
·thepaypers.com·
Japan abandons CBDC project
An Illustrative Industry Architecture to Mitigate Potential Fragmentation across CBDC and Commercial Bank Money
An Illustrative Industry Architecture to Mitigate Potential Fragmentation across CBDC and Commercial Bank Money
A paper by a couple of Barclays staffers aims to provide a mitigation to the risk that the adoption of central bank digital currency (CBDC) fragments payments markets and retail deposits. It introduces the concept of ecosystems providing a common programmability layer that interfaces with the account systems at both commercial banks and the central bank. The paper focuses on a potential U.K. CBDC, including industry ecosystems interfacing with commercial banks using open banking application programming interfaces (APIs).
#Fintech#CBDC#UnitedKingdom#DFC
·arxiv.org·
An Illustrative Industry Architecture to Mitigate Potential Fragmentation across CBDC and Commercial Bank Money
Thailand's Central Bank Extends Retail CBDC Study to Pilot Phase
Thailand's Central Bank Extends Retail CBDC Study to Pilot Phase
The Bank of Thailand is extending the scope of retail central bank digital currency (CBDC) development by starting a pilot study. It will adopt technology developed by Giesecke+Devrient and is expected to begin at the end of 2022 and last until mid-2023. However, the central bank emphasized that the purpose of the pilot is to assess the suitability of technology and CBDC design, and at present it does not have plans to issue retail CBDC until thorough consideration of benefits and associated risks for the financial system. https://www.bot.or.th/English/PressandSpeeches/Press/2022/Pages/n3965.aspx
#Fintech#CBDC#Asia#Thailand#DFC
·coindesk.com·
Thailand's Central Bank Extends Retail CBDC Study to Pilot Phase
Central bank digital currencies could mean the end of democracy
Central bank digital currencies could mean the end of democracy
"The transition to national digital currencies gives governments the ability to automate transactions and create conditions under which it can be spent. This raises crucial implications about democracy that must be identified and considered before central bank digital currencies become a reality."
#Fintech#CBDC#GovCoins#DFC
·theconversation.com·
Central bank digital currencies could mean the end of democracy
Aureum Core - Fluency
Aureum Core - Fluency

"Innovative technology built specifically to enable CBDCs with full customisation. Inclusive, easy, convenient and affordable ledger-stored account CBDC access for banked, unbanked and underbanked - Seamless Consecutive Offline payments, Privacy, Interoperability and Innovation "

#Fintech#CBDC#Offline#DFC
·fluencytech.com·
Aureum Core - Fluency
CBDC launch still on the table, BoJ says - Central Banking
CBDC launch still on the table, BoJ says - Central Banking
A Bank of Japan (BoJ) official said the central bank has not scrapped its preparations for a potential CBDC launch, dismissing misleading reports by a number of media outlets. Tomohiro Sugo, head of the payment and settlement system division, told Central Banking that "the Bank of Japan continues preparing for the possible issuance of CBDC in the future and it has not quit its preparations." [Read more at Central Banking] As I mentioned a few days ago the misleading reports started with an Asia Times op-ed that rehashed inaccurately a July 5, 2022 report from the BoJ’s Liaison and Coordination Committee on Central Bank Digital Currency.
#Fintech#CBDC#Japan#DFC
·centralbanking.com·
CBDC launch still on the table, BoJ says - Central Banking
Nepal's central bank working to amend Act to issue digital currency
Nepal's central bank working to amend Act to issue digital currency
The Nepal Rastra Bank has reportedly initiated an exercise to revise the Nepal Rastra Bank Act in order to enable the central bank to issue digital versions of the Nepali currency. Revati Nepal, chief of the currency management department at the central bank. said that “a task force formed by the central bank has drafted an amendment bill to authorize the Nepal Rastra Bank to issue and manage a digital currency."
#Fintech#CBDC#Asia#DFC
·kathmandupost.com·
Nepal's central bank working to amend Act to issue digital currency
Australian Reserve Bank to Explore Use Cases for CBDC
Australian Reserve Bank to Explore Use Cases for CBDC
The Reserve Bank of Australia (RBA) has launched a research project to explore use cases for a CBDC in Australia. It is expected to take about a year to complete, and will involve the development of a limited-scale CBDC pilot that will operate in a ring-fenced environment for a period of time. Interested industry participants will be invited to develop specific use cases that demonstrate how a CBDC could be used to provide innovative and value-added payment and settlement services to households and businesses. The Bank and the DFCRC will then select a range of different use cases to participate in the pilot, based on their potential to provide insights into the possible benefits of a CBDC.
#Fintech#CBDC#Australia#DFC
·rba.gov.au·
Australian Reserve Bank to Explore Use Cases for CBDC
HKMA announces competition to promote CBDCs
HKMA announces competition to promote CBDCs
The Hong Kong Monetary Authority (HKMA), has added a central bank digital currency (CBDC) section to the annual Global Fast Track business competition to encourage research into the use cases of digital currencies. Companies are invited invited to pitch business plans relating to the adoption, programmability, interoperability, privacy, cybersecurity, foreign exchange and liquidity management, and offline payments of CBDCs. Shortlisted applicants will then enter a pitching session exclusive for the track and compete for three awards. All qualified candidates may also have the opportunities to work with the HKMA on research projects and pilots to foster the future growth of the CBDC ecosystem. https://www.hkma.gov.hk/eng/news-and-media/press-releases/2022/08/20220810-4/
#Fintech#CBDC#Asia#DFC
·forkast.news·
HKMA announces competition to promote CBDCs
Unbanked in America: A Review of the Literature
Unbanked in America: A Review of the Literature
"The unbanked rate has been decreasing in the United States, but it remains high compared to unbanked rates in other developed economies. Lower-income and racial and ethnic minority households are more likely to lack access to a bank account than white households with higher incomes. Fees and minimum balance requirements are important factors in the decision to be unbanked. However, several studies show that when fees are constrained, banks find low-balance accounts unprofitable, so access to bank accounts can actually decline."
#Fintech#FinancialInclusion#CBDC#DFC
·clevelandfed.org·
Unbanked in America: A Review of the Literature
Why Worry about Financial Exclusion?
Why Worry about Financial Exclusion?
"We use economic principles along with evidence from the data and the academic and policy literature to discuss frictions that might lead to inefficient financial exclusion in the United States, defined here as a suboptimal allocation of bank account services. Private market initiatives—such as financial education schemes or new online banks—or new technologies—such as prepaid cards—can help mitigate such frictions. But if the frictions persist, intervention by authorities may be justified."
#Fintech#FinancialInclusion#CBDC#DFC
·clevelandfed.org·
Why Worry about Financial Exclusion?
Beac to oversee CAR's cryptocurrency project
Beac to oversee CAR's cryptocurrency project
"The Bank of Central African States (Beac) will oversee the cryptocurrency adoption project ongoing in the Central African Republic. The decision was taken following the July 21, 2022 meeting of the Ministerial Committee of the Central African Monetary Union (Umac) in Douala." https://www.beac.int/wp-content/uploads/2022/07/Communiqu%C3%A9-de-Presse-CM-Extra-21-juillet-2022.pdf
#Fintech#CryptoAssets#CBDC#Africa#DFC
·businessincameroon.com·
Beac to oversee CAR's cryptocurrency project
Russia plans to roll out digital ruble across all banks in 2024
Russia plans to roll out digital ruble across all banks in 2024
The Bank of Russia continues working towards the gradual introduction of central bank digital currency (CBDC) according to the latest monetary policy update. The prototype digital ruble platform is currently being tested, and in 2023 the central bank plans to start pilot testing, including beta tests of digital ruble-based smart contracts for trades by a limited number of participants. If all goes to plan, the connection of banks and credit institutions to the digital ruble platform in will happen in 2024.
#Fintech#CBDC#Russia#DFC
·cbr.ru·
Russia plans to roll out digital ruble across all banks in 2024