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Russia plans to use digital rouble in settlements with China, says lawmaker
Russia plans to use digital rouble in settlements with China, says lawmaker
After launching a digital rouble early next year, Russia plans to use the currency in mutual settlements with China as it seeks to reduce Washington's global financial hegemony, according to Anatoly Aksakov, head of the financial committee in Russia's lower house of parliament.
#Fintech#CBDC#CrossBorder#Payments#Russia#China#DFC
·reuters.com·
Russia plans to use digital rouble in settlements with China, says lawmaker
Project Icebreaker: Central banks of Israel, Norway and Sweden team up with the BIS to explore retail CBDC for international payments
Project Icebreaker: Central banks of Israel, Norway and Sweden team up with the BIS to explore retail CBDC for international payments
The Bank for International Settlements (BIS) and the central banks of Israel, Norway and Sweden are launching Project Icebreaker, a joint exploration of how central bank digital currencies (CBDCs) can be used for international retail and remittance payments. using a hub-and-spoke model. The project will run through the end of the year, with a final report expected in the first quarter of 2023.
#Fintech#CBDC#CrossBorder#Payments#BIS#DFC
·bis.org·
Project Icebreaker: Central banks of Israel, Norway and Sweden team up with the BIS to explore retail CBDC for international payments
Yuan: Digital Currency: Yuan comes with an expiry date: Spend or it will vanish
Yuan: Digital Currency: Yuan comes with an expiry date: Spend or it will vanish
China is reportedly exploring putting expiration dates on its e-CNY retail central bank digital currency (CBDC), which could force holders to use it up by a certain date. This idea has most recently been explored in a Celo working paper that advocated using expiration dates to increase the "velocity" of money, based on an an unconventional monetary policy instrument known as a Gesell money.
#Fintech#CBDC#Gesell#China#DFC
·bfsi.economictimes.indiatimes.com·
Yuan: Digital Currency: Yuan comes with an expiry date: Spend or it will vanish
ECB provides update on its digital euro work
ECB provides update on its digital euro work
The European Central Bank (ECB) provided a status report on its central bank digital currency (CBDC) work. It confirmed that a digital euro would incorporate individual user holding limits to slow the possible conversion of bank deposits into digital euro  (disintermediation risk). A digital euro would also bear interest calibrated to make digital holdings above a certain threshold unattractive compared to other highly liquid low-risk assets.  Offline payments will only be allowed for low value, low risk, close proximity transactions. [Read the report here] In addition, ECB board member Fabio Panetta set out a plan for a digital euro scheme involving a set of rules, practices and standards with plans to start working on a rulebook. https://www.ecb.europa.eu/press/key/date/2022/html/ecb.sp220929~91a3775a2a.en.html
#Fintech#CBDC#Eurozone#DFC
·ecb.europa.eu·
ECB provides update on its digital euro work
Towards CBDCs in Asia and the Pacific: Results of a Regional Survey
Towards CBDCs in Asia and the Pacific: Results of a Regional Survey
"Drawing on survey responses from 34 Asian economies and country case studies, this note takes stock of recent developments related to central bank digital currencies (CBDCs) and crypto assets in Asia. The survey finds that there is significant heterogeneity in terms of stage of development, but the emergence of private crypto assets has created an impetus to consider CBDCs. While most countries are engaged in research and development, with some at advanced stages of testing and pilots, very few countries are likely to issue CBDCs in the near-to-medium term, reflecting the still considerable uncertainties. Still, country experiences so far provide some key insights for others in their journey in this area."
#Fintech#CBDC#Asia-Pacific#IMF#DFC
·imf.org·
Towards CBDCs in Asia and the Pacific: Results of a Regional Survey
A successful CBDC implementation depends on solving the “CBDC Design Trilemma”
A successful CBDC implementation depends on solving the “CBDC Design Trilemma”
The “Blockchain Trilemma” is a term used to describe the challenge of increasing performance, security, and decentralisation at the same time. Current enterprise blockchains are not truly decentralised. They may be structurally decentralised, but are operationally centralised. By reversing this, having structurally centralised, but operationally decentralised architecture, a CBDC can achieve a high-performance blockchain. However, any blockchain-based CBDC should not only solve the blockchain trilemma, but also the CBDC design trilemma, which notes that identity, privacy, and programmability cannot be easily enhanced at the same time. A CBDC cannot ignore privacy for the sake of achieving legal compliance and implementing programmable money. From an expertise point of view, the answer to this trilemma is the use of a decentralized identity system such as self-sovereign identity (SSID) to find the perfect equilibrium for the CBDC design trilemma. Self-sovereign identity is very popular for its advanced privacy protection. By having an SSID-based blockchain system, a CBDC can incorporate both privacy and transparency into the blockchain-based CBDC system. Additionally, a use of zero-knowledge encryption to protect the transaction privacy of blockchain data is highly recommended for any CBDC implementation.
#Fintech#CBDC#DFC
·blog.digital-euro-association.de·
A successful CBDC implementation depends on solving the “CBDC Design Trilemma”
The digital euro progress report key takeaways
The digital euro progress report key takeaways

The digital euro project has just published a new progress report. Here are the Bank of Finland's Aleksi Grym's key takeaways: 1/ A key objective for the digital euro would be to preserve public money as a monetary anchor for the economy, a role now played by cash. Perhaps, in the future, cash will no longer be used, therefore a digital anchor is needed. 2/ Another key objective would be to strengthen Europe's strategic autonomy and economic efficiency when it comes to retail payments. This market is now too dependent on non-European infrastructures. 3/ Privacy is considered important, but full anonymity will not be possible. Intermediaries would have visibility on their own customers for compliance purposes. The central bank would have minimal visibility on data. 4/ Mechanics would be built in to prevent hoarding. These could be a combination of holding limits and tiered remuneration. Building these mechanics into the product does not imply how and when they would be used. That would require a separate policy decision. https://www.ecb.europa.eu/paym/digital_euro/investigation/profuse/shared/files/dedocs/ecb.dedocs220929.en.pdf

#Fintech#CBDC#Eurozone#DFC
·twitter.com·
The digital euro progress report key takeaways
SORAMITSU, JICA, and Bank of the Lao PDR to Inaugurate CBDC Research
SORAMITSU, JICA, and Bank of the Lao PDR to Inaugurate CBDC Research
On October 4, 2021, Soramitsu was selected by the Japan International Cooperation Agency to explore with the Bank of the Lao PDR the potential contribution of CBDC to the inclusive development of the financial system of the Lao People's Democratic Republic. Confirmed: https://www.imf.org/en/Publications/fintech-notes/Issues/2022/09/27/Towards-Central-Bank-Digital-Currencies-in-Asia-and-the-Pacific-Results-of-a-Regional-Survey-523914
#Fintech#CBDC#Asia-Pacific#DFC
·soramitsu.co.jp·
SORAMITSU, JICA, and Bank of the Lao PDR to Inaugurate CBDC Research
SORAMITSU to Lead Feasibility Study on Digital Currency in Oceania
SORAMITSU to Lead Feasibility Study on Digital Currency in Oceania
On January 10, 2022 Soramitsu was selected by the NTT Data Institute of Management Consulting to evaluate the potential risks and benefits of introducing CBDC in Fiji, Solomon Islands, Tonga, and Vanuatu. Confirmed by the IMF in September 2022: https://www.imf.org/en/Publications/fintech-notes/Issues/2022/09/27/Towards-Central-Bank-Digital-Currencies-in-Asia-and-the-Pacific-Results-of-a-Regional-Survey-523914
#Fintech#CBDC#Asia-Pacific#DFC
·soramitsu.co.jp·
SORAMITSU to Lead Feasibility Study on Digital Currency in Oceania
Central Bank Unveils RamzRial, an 'Iranian National Cryptocurrency'
Central Bank Unveils RamzRial, an 'Iranian National Cryptocurrency'
More details are being reported on the CBDC pilot reportedly launched by Iran's central bank. It's reportedly a partnership with two local banks (Bank Melli and Mellat Bank) that have have given 1 billion tomans ($311,000) to a limited number of people, and two shops have been designated for the use of the currency.
#Fintech#CBDC#MiddleEast#Iran#DFC
·iranwire.com·
Central Bank Unveils RamzRial, an 'Iranian National Cryptocurrency'
AML by design: Designing a CBDC to stifle money laundering
AML by design: Designing a CBDC to stifle money laundering
This article explores how technical CBDC design choices can be used to make a CBDC inherently resistant to money laundering. These design choices not only further anti-money laundering (AML), but they can also help to better balance AML priorities with other goals including financial inclusion, privacy and compliance costs. Moreover, CBDCs provide an opportunity to measure the effectiveness of different design choices in real time. These measurements can facilitate the iterative redesign of CBDCs to identify optimal approaches to meeting regulatory objectives.
#Fintech#CBDC#AMLCFT#FinancialIntegrity#DFC
·sciencepolicyreview.org·
AML by design: Designing a CBDC to stifle money laundering
Why CBDC stands to benefit banks
Why CBDC stands to benefit banks
"The argument that national currencies are already digital is a valid one. However, the innovation with CBDC is not that it is digital but that it is a digital token on a distributed ledger. Digital tokens enable instant settlement, reducing open positions and risk exposures. That gives them unique functions, including programmability, that conventional monies do not hold and that unlock new possibilities in payments. Further, the deferred settlement embedded in several current payment methods requires financial institutions to hold additional liquidity in various accounts like nostro/vostro. This could be significantly optimised using wholesale CBDC schemes."
#Fintech#CBDC#DFC
·bankingblog.accenture.com·
Why CBDC stands to benefit banks
Digital Cash Is Not Physical Cash
Digital Cash Is Not Physical Cash
"We now have zero-knowledge proofs, blinding, homomorphic encryption and many other tried and tested techniques that we can use to keep data private in normal circumstances but that can reveal it in special circumstances, such as the production of a court order. Let’s be optimistic about the privacy apples and put the anonymous oranges to one side."
#Fintech#CBDC#Privacy#Offline#DFC
·forbes.com·
Digital Cash Is Not Physical Cash
Privacy in cross-border digital currency: A transatlantic approach
Privacy in cross-border digital currency: A transatlantic approach
The Atlantic Council published an article illustrating how various technical design choices can affect the privacy and transparency of cross-border central bank digital currencies (CBDCs). Many of the cross-border CBDC pilot studies to date have adopted the technical designs provided by enterprise distributed ledger (DLT) platforms. However, some of these designs make tradeoffs regarding privacy, efficiency, and/or security. Whether these tradeoffs are acceptable is a matter of policy, and requires coordination between different regulators and central banks.
#Fintech#CBDC#CrossBorder#Privacy#DFC
·atlanticcouncil.org·
Privacy in cross-border digital currency: A transatlantic approach
SWIFT innovation paves way for global use of CBDCs and tokenised assets
SWIFT innovation paves way for global use of CBDCs and tokenised assets
SWIFT has successfully shown that central bank digital currencies (CBDCs) and tokenized assets can move seamlessly on existing financial infrastructure. The findings, from two separate experiments, bridged between different distributed ledger technology (DLT) networks and existing payment systems, allowing digital currencies and assets to flow smoothly alongside, and interact with, their traditional counterparts.
#Fintech#CBDC#CrossBorder#SWIFT#DFC
·swift.com·
SWIFT innovation paves way for global use of CBDCs and tokenised assets
Central Bank Digital Currency (CBDC): identifying appropriate policy goals and design for Nepal
Central Bank Digital Currency (CBDC): identifying appropriate policy goals and design for Nepal
Nepal Rastra Bank (NRB) published a concept report on central bank digital currency (CBDC) for public consultation. The report recommends that the NRB move forward in with CBDC issuance plans, with design focusing on four policy goals; improving access to payments, enhancing payment system resilience, reducing currency management costs, and promoting financial inclusion. It suggests that a retail, intermediated, semi-centralized infrastructure-based CBDC that is interoperable with other domestic payment systems, is most suitable for Nepal. Also, it should be unremunerated, available 24/7 hours, quantity restrictive, and programmable for broader usage options. The next steps is to set up a cross-functional dedicated team, to carry out the exhaustive and rigorous next steps.
#Fintech#CBDC#Asia#Nepal#DFC
·web.archive.org·
Central Bank Digital Currency (CBDC): identifying appropriate policy goals and design for Nepal
Archetypes for a retail CBDC
Archetypes for a retail CBDC
The Bank of Canada published a paper that proposes a common framework to analyze and compare the different possible retail CBDC designs, independent of vendor, platform and technology. It is based on five archetypes—common patterns that recur in system designs—and discuss their trade-offs from the perspective of privacy, compliance, visibility, scalability, resilience, extensibility, online and offline payments. The five archetypes are centralized, leaderless, macro-partitioned (money service businesses (MSBs) own and operate partitions), micro-partitioned (users maintain the different partitions) and direct (users directly provide their own oversight). The analysis suggests that a design based on a single archetype is unlikely to achieve all policy goals.
#Fintech#CBDC#Canada#DFC
·bankofcanada.ca·
Archetypes for a retail CBDC
India's Central Bank Crystalizes CBDC Vision in Concept Note
India's Central Bank Crystalizes CBDC Vision in Concept Note
The Reserve Bank of India (RBI) published a report on its central bank digital currency (CBDC) plans, indicating that a digital rupee pilot will be launched "soon". Motivations include reducing physical cash management operational costs, fostering financial inclusion, payments system resilience and efficiency, and cross-border payments. A key requirement will be to offer availability and resilience benefits when electrical power or mobile network is not available in remote locations. https://rbi.org.in/Scripts/PublicationReportDetails.aspx?ID=1218
#Fintech#CBDC#Asia#India#DFC
·coindesk.com·
India's Central Bank Crystalizes CBDC Vision in Concept Note
ECB seeks scheme rulebook manager for the digital euro
ECB seeks scheme rulebook manager for the digital euro
The European Central Bank (ECB) Directorate General Market Infrastructure and Payments is looking for a senior expert from the payments industry to coordinate the group that will draft a potential digital euro scheme rulebook, i.e. a set of rules for payment transactions with a digital euro.
#Fintech#CBDC#Eurozone#DFC
·ecb.europa.eu·
ECB seeks scheme rulebook manager for the digital euro
Merchants - key to the success of the digital euro
Merchants - key to the success of the digital euro
"As Fabio Panetta, member of the Executive Board of the ECB, suggested at the last Annual Congress of the European Economic Association in Milan, “the market for payments is two-sided”. In this sense, the success of the digital euro would largely depend on its adoption not only by consumers but also by merchants. Much of the discussion so far around the digital euro has focused on the first group of stakeholders, which has led to vibrant policy and academic debates on privacy issues, security factors, safety of funds or accessibility matters. However, less attention has been given to merchants’ willingness to support this new means of payment. "
#Fintech#CBDC#Eurozone#DFC
·blog.digital-euro-association.de·
Merchants - key to the success of the digital euro
Banque de France participates in a new wholesale CBDC experiment with SWIFT
Banque de France participates in a new wholesale CBDC experiment with SWIFT
The Banque de France has joined a consortium of 14 banks and market infrastructures launched by SWIFT, to conduct a new central bank digital currency (CBDC) experiment for interbank settlement purposes. The objective of the experiment is to issue cross-border payments in a test environment to study the interoperability between different distributed ledger technologies (DLTs) and existing payment systems. These payments will be made in simulated CBDC issued by the participating central banks.
#Fintech#CBDC#Eurozone#wCBDC#CrossBorder#France#DFC
·banque-france.fr·
Banque de France participates in a new wholesale CBDC experiment with SWIFT
The Central Bank of Namibia is actively exploring CBDC issuance
The Central Bank of Namibia is actively exploring CBDC issuance
The Bank of Namibia is exploring issuing a Namibia Dollar central bank digital currency (CBDC), and will reportedly soon publish a public consultation paper on the topic. The main motivation would be to "ensure that individuals operating in an increasingly digitalized economy continue to have access to central bank money".
#Fintech#CBDC#Africa#Namibia#DFC
·bon.com.na·
The Central Bank of Namibia is actively exploring CBDC issuance
European Data Protection Board statement on the digital euro
European Data Protection Board statement on the digital euro
The European Data Protection Board (EDPB) reiterated the importance of ensuring digital euro privacy and data protection by design and by default. The EDPB cautioned against the use of systematic validation and tracing of all transactions in digital euros. In this respect, the EDPB recommended that the digital euro be made available both online and offline, along a threshold below which no tracing is possible, to allow full anonymity of daily transactions.
#Fintech#CBDC#Eurozone#Privacy#Offline#DFC
·edpb.europa.eu·
European Data Protection Board statement on the digital euro
Digital yuan transactions volume crossed $14B mark
Digital yuan transactions volume crossed $14B mark
China’s central bank digital currency (CBDC) project has reached the roughly 100 billion yuan ($14 billion) transaction mark during its pilot phase. “Multiple e-government service platforms have opened digital renminbi payment services, supporting online and offline channels to handle various public utility payments, using digital renminbi to issue tax rebate funds, special funds for monthly medical insurance payment, funds for helping people in need, and ‘specialized, special and new’ enterprise support funds, etc.” Going forward, the People's Bank of China (PBOC) plans to launch the cross-border payments between Hong Kong and mainland China, following the principle of “anonymity for small amounts and traceability of large amounts” to protect the user’s personal data. https://mp.weixin.qq.com/s/mrc_vPXAZf4glX9_NEfmUQ
#Fintech#CBDC#China#DFC
·cointelegraph.com·
Digital yuan transactions volume crossed $14B mark
Central bank digital currencies: An active role for commercial banks
Central bank digital currencies: An active role for commercial banks
McKinsey & Company published a report that pitches active commercial bank involvement in central bank digital currency (CBDC) decision-making processes. But more interestingly for me, the report advocates central banks taking a more "agile" approach to CBDC research and development. "By adopting an agile approach, central banks can deploy a CBDC within three years, compared with five years or more using a traditional waterfall development model. Although adoption and realization of scale will likely prove to be longer-term efforts, lessons from early launches and a set of best practices can help foster early market acceptance.
#Fintech#CBDC#DFC
·mckinsey.com·
Central bank digital currencies: An active role for commercial banks
The potential of central bank digital currencies for cross-border payments
The potential of central bank digital currencies for cross-border payments
This SUERF Policy Brief presents the key findings of the annual BIS survey of central banks about their engagement in central bank digital currency (CBDC) and it discusses these findings in the context of cross-border payments. As in previous years, the motivations to consider issuing a CBDC differ between AE and EMDE central banks and between retail and wholesale CBDCs. Overall, the retail CBDC work in AEs is driven mainly by domestic payments efficiency, payments safety and financial stability considerations. The same reasons are also important drivers for the retail CBDC work in EMDEs, however, their CBDC engagement is, above all, driven by financial inclusion-related motivations.
#Fintech#CBDC#CrossBorder#DFC
·suerf.org·
The potential of central bank digital currencies for cross-border payments
National Bank of the Republic of Kazakhstan launches CBDC proof-of-concept
National Bank of the Republic of Kazakhstan launches CBDC proof-of-concept

The National Bank of the Republic of Kazakhstan (NBK) launched a one-week DigitalTenge central bank digital currency (CBDC) proof-of-concept (PoC) involving NBK staff and local merchants. (This is much like the National Bank of Ukraine 2019 PoC.) The NBK PoC will test basic payment scenarios (e.g., C2B, P2P), non-functional requirements, and programmability. For example, it will test special-purpose tokens on which consumer might purchase only from the “white list” of merchants or products, within particular time period etc. In parallel, the NBK is finalizing its research and development for offline and advanced smart contract deployment on its platform. Updates: Day 2: https://www.linkedin.com/posts/binur-zhalenov_digitaltenge-voucher-cbdc-activity-6988129761147408384-ygn9 Day 3: https://www.linkedin.com/posts/binur-zhalenov_digitaltenge-userjourney-anonymity-activity-6988542488122650624-hJWq Day 4: https://www.linkedin.com/posts/binur-zhalenov_digitaltenge-cbdc-cybersecurity-activity-6988850914920919040-OSaK

#Fintech#CBDC#Asia#Kazakhstan#DFC
·linkedin.com·
National Bank of the Republic of Kazakhstan launches CBDC proof-of-concept
Central Bank of Eswatini partners with Giesecke+Devrient to further explore CBDC issuance
Central Bank of Eswatini partners with Giesecke+Devrient to further explore CBDC issuance
The Central Bank of Eswatini (CBE) has partnered with Giesecke+Devrient (G+D) to research and explore the development of a central bank digital currency (CBDC). G+D's appointment stems from the completion of the 1st phase of the CBDC Diagnostic Study conducted in 2020 which found that a retail CBDC presented the strongest and direct opportunity for the adoption of a digital currency in Eswatini.
#Fintech#CBDC#Africa#G+D#Eswatini#DFC
·centralbank.org.sz·
Central Bank of Eswatini partners with Giesecke+Devrient to further explore CBDC issuance