DFC

5279 bookmarks
Custom sorting
Crypto's Retreat Opens a Quantum Leap for Central Banks
Crypto's Retreat Opens a Quantum Leap for Central Banks
Where the relationship between citizens and the state has a trust deficit to begin with, technology may offer better solutions than institutions. One such idea comes from the world of polling. The election officer (read, the monetary authority) signs a sealed envelope that carries your secret ballot (the payment details); carbon paper (cryptography) carries the signature to the vote inside. So when the envelope is opened (the payee is credited), all that the receiver’s bank sees is the signature attached to the ballot, not where the vote (the funds) came from. You, however, will know what you did or didn’t intend to do. If a terror financier steals your wallet, you’d go to law enforcement to show them where your tokens are. You might even get them back.
#Fintech#CBDC#Switzerland#BlindSignatures#DFC
·bloomberg.com·
Crypto's Retreat Opens a Quantum Leap for Central Banks
The interoperability of CBDCs across networks and currencies
The interoperability of CBDCs across networks and currencies
The Banque de France in partnership with HSBC and IBM demonstrated the use of a wholesale central bank digital currency (CBDC) to enable transactions across borders and technology platforms whilst facilitating the lifecycle of digital assets and currencies in wholesale markets. A combined proof of concept tested the issuance and distribution of a CBDC, bond subscription in primary and secondary markets followed by coupon redemption, and execution of cross border and cross network payments. It proved that each transaction flowed correctly through the network of systems, automatically triggering the required events, whilst retaining visibility and control over the CBDC in circulation.
#Fintech#CBDC#Blockchain#Settlement#wCBDC#Eurozone#France#DFC
·gbm.hsbc.com·
The interoperability of CBDCs across networks and currencies
Pre-announcement of the digital euro market research
Pre-announcement of the digital euro market research
In January 2023, the European Central Bank (ECB) will invite market participants to take part in market research to obtain an overview of options for the technical design of possible digital euro components and services. The market research will consist of a set of questions to obtain technical input, as well as cost and time estimations. Participation will not be remunerated. It will not have any impact on eligibility for future procurement procedures related to a digital euro or any other procurement procedures. Nor will it imply any pre-selection for a potential subsequent tender. The ECB intends to publish the findings of the market research in the second quarter of 2023.
#Fintech#CBDC#Eurozone#DFC
·ecb.europa.eu·
Pre-announcement of the digital euro market research
The Riksbank is making preparations for a possible e-krona
The Riksbank is making preparations for a possible e-krona
"The Riksbank is continuing to investigate the possibility of issuing a digital complement to cash, known as the e-krona. This would preserve public access to government-issued money even if cash were to be marginalised further. In addition, the e-krona could strengthen the resilience of the payments market. No decision has yet been taken to issue an e-krona.
#Fintech#CBDC#Sweden#DFC
·riksbank.se·
The Riksbank is making preparations for a possible e-krona
Kazakhstan central bank recommends a phased CBDC rollout between 2023-25
Kazakhstan central bank recommends a phased CBDC rollout between 2023-25
The National Bank of Kazakhstan (NBK) and the Payment and Financial Technology Development Center of the Bank of Kazakhstan (NBK) published a report on the results of the study on the need to introduce the digital tenge. It is reportedly recommending making the central bank digital currency (CBDC) available as early as 2023 with a phased expansion of functionality and introduction into commercial operation until the end of 2025. Unfortunately the report won't be available in English until later this week, at which point I'll be able to verify some of the facts and plans. For example, the report is saying that a pilot was just wrapped up, but it's unclear whether it's a pilot of proof of concept, since I don't know the composition of the test users. If they're pulled from the general public, it is a pilot, but if the test subjects are limited to central bank staff, it's a proof of concept by my taxonomy. https://nationalbank.kz/kz/news/novosti/14692
#Fintech#CBDC#Kazakhstan#Asia#DFC
·cointelegraph.com·
Kazakhstan central bank recommends a phased CBDC rollout between 2023-25
Bank of Ghana CBDC Update
Bank of Ghana CBDC Update
According to Bank of Ghana Governor Ernest Addison, a successful implementation of the eCedi CBDC will further advance financial inclusion, strengthen policy transmission, promote efficiency in the payment system, and provide a safe alternative to private digital assets. 38. After taking the necessary preparatory steps, a three (3) staged pilot was implemented in Accra and Tarkwa in collaboration with CAL Bank, Fidelity Bank,Vodafone Cash, IT Consortium and ExpressPay to test the online version of the eCedi, while an off-line version was tested in Sefwi Asafo. The initial findings from the pilot have provided the Bank with deep insights on the possible implementation process for the eCedi, and these results will soon be shared with industry players.
#Fintech#CBDC#Africa#Ghana#DFC
·bog.gov.gh·
Bank of Ghana CBDC Update
Crunchfish ready to start Digital Cash pilot with Indian banks
Crunchfish ready to start Digital Cash pilot with Indian banks
"Crunchfish in partnership with HDFC Bank and one additional Indian bank have been working together to develop a solution for Offline Retail Payments that will be demonstrated in a pilot to Reserve Bank of India (RBI) in their Regulatory Sandbox program*. The project, if successful, will provide the basis for RBI’s guidance and regulatory support in providing Offline Retail Payments, based on Crunchfish Digital Cash platform, to the payment ecosystem of India. "
#Fintech#CBDC#Payments#Offline#Crunchfish#DFC
·crunchfish.com·
Crunchfish ready to start Digital Cash pilot with Indian banks
Towards legal interoperability of retail CBDCs: a comparative law perspective
Towards legal interoperability of retail CBDCs: a comparative law perspective
The European Central Bank (ECB) published a collection of papers presented at the September 5-6, 2022 European System of Central Banks (ESCB) Legal Conference, including three on the legal aspects of central bank digital currency (CBDC) interoperability. A paper by Jess Cheng and Joseph Torregrossa discusses the concept of “legal interoperability” in the domestic payment system and its relevance to the retail CBDC context, particularly as the necessary legal foundation for transferability and convertibility. The second by Panagiotis Papapaschalis makes the case for exposing and overcoming technical and legal obstacles to interoperability ex-ante and early on, rather than trying to tackle them ex post, i.e. only when the various, diverging, CBDCs have gained momentum. The third paper, by Seraina Grünewald, focuses particularly on the prospects and challenges for the legal interoperability of a digital euro.
#Fintech#CBDC#Interoperability#Legal#ECB#DFC
·ecb.europa.eu·
Towards legal interoperability of retail CBDCs: a comparative law perspective
Report on results of the second phase of the Digital Tenge project (English version)
Report on results of the second phase of the Digital Tenge project (English version)
The National Bank of Kazakhstan (NBK) and the Payment and Financial Technology Development Center of the Bank of Kazakhstan published the English version of their report on the second phase of their digital tenge central bank digital currency (CBDC) feasibility study.The second phase was comprised primarily of proof-of-concept work involving select financial institutions, merchants and final users. The report calls it a "pilot" but is silent on who the selected final users were. If they were central bank employees, it is a proof-of-concept by most CBDC exploration workflow taxonomies, but if users were selected from the general public, then it's a pilot. In any case, the report recommends a phased rollout starting in 2023 with a gradual expansion of its functionality and step-by-step introduction into production scale by the end of 2025.
#Fintech#CBDC#Asia#Kazakhstan#DFC
·nationalbank.kz·
Report on results of the second phase of the Digital Tenge project (English version)
ECB publishes second progress report on the digital euro investigation phase
ECB publishes second progress report on the digital euro investigation phase
The European Central Bank (ECB) published the second progress report on the investigation phase of a digital euro. It outlines the developments made since the first progress report, which was published in September 2022. The report details a second set of design and distribution options that were recently endorsed by the Governing Council and describes the roles of the Eurosystem and supervised intermediaries in the digital euro ecosystem. In 2023 the ECB will further assess a number of design and distribution options and in the second half of the year present the overall design of a digital euro to the Governing Council.
#Fintech#CBDC#Eurozone#ECB#DFC
·ecb.europa.eu·
ECB publishes second progress report on the digital euro investigation phase
Boston Fed, MIT complete research project into feasibility of a central bank digital currency
Boston Fed, MIT complete research project into feasibility of a central bank digital currency
A joint research effort between the Federal Reserve Bank of Boston and the Massachusetts Institute of Technology (MIT) into the technical feasibility of a potential central bank digital currency is now complete. Early this year, Project Hamilton published its research on a transaction processor for a theoretical high-performance and resilient CBDC. The processor was developed as open-source research software, called OpenCBDC, and project leaders urged global contributors to continue working on it. The project was announced in 2020, and in February 2022, the Boston Fed and MIT released the OpenCBDC software and a whitepaper describing their initial findings. They plan to release additional retrospectives on Project Hamilton’s findings in the coming months.
#Fintech#CBDC#UnitedStates#DFC
·bostonfed.org·
Boston Fed, MIT complete research project into feasibility of a central bank digital currency
IMF suggests ‘extensive’ digital currency pilots for the Philippines
IMF suggests ‘extensive’ digital currency pilots for the Philippines
The International Monetary Fund (IMF) is recommending several phases and “extensive” pilot projects for the Bangko Sentral ng Pilipinas (BSP) wholesale central bank digital currency (CBDC) especially in cybersecurity issues, laws and regulations that will cover implementation. A wholesale CBDC is being considered in the Philippines as a possible means to enhance existing payment and settlement functions. While the BSP charter, amended in 2019, does allow for the issuance of wholesale CBDC, the regulatory framework “may need to be revisited to ensure governance and financial stability risks are addressed.” https://www.imf.org/en/Publications/CR/Issues/2022/12/15/Philippines-2022-Article-IV-Consultation-Press-Release-and-Staff-Report-526983
#Fintech#CBDC#Asia-Pacific#Philippines#wCBDC#DFC
·mb.com.ph·
IMF suggests ‘extensive’ digital currency pilots for the Philippines
You can now use JAM-DEX on Lynk
You can now use JAM-DEX on Lynk
“The combination of Lynk - Jamaica’s most innovative Digital Wallet - and JAM-DEX - Jamaica’s CBDC - offers a solution to three public policy objectives in the financial system - inclusion, security and convenience. As technology rapidly evolves, day-to-day and business payment transaction behaviours are also changing,” said Vernon James, Lynk CEO.
#Fintech#CBDC#Caribbean#Jamaica#DFC
·lynk.us·
You can now use JAM-DEX on Lynk
Operationalization of the e-Rupee pilot
Operationalization of the e-Rupee pilot
"The e₹-R would be in the form of a digital token that represents legal tender. It would be issued in the same denominations that paper currency and coins are currently issued. It would be distributed through intermediaries, i.e., banks. Users will be able to transact with e₹-R through a digital wallet offered by the participating banks and stored on mobile phones / devices. Transactions can be both Person to Person (P2P) and Person to Merchant (P2M). Payments to merchants can be made using QR codes displayed at merchant locations. The e₹-R would offer features of physical cash like trust, safety and settlement finality. As in the case of cash, it will not earn any interest and can be converted to other forms of money, like deposits with banks."
#Fintech#CBDC#Asia#India#DFC
·rbi.org.in·
Operationalization of the e-Rupee pilot
e-CNY wallet borrows Alipay and WeChat Pay’s electronic red packet feature to woo users
e-CNY wallet borrows Alipay and WeChat Pay’s electronic red packet feature to woo users
As part of its e-CNY central bank digital currency (CBDC) pilot, the People's Bank of China (PBOC) has launched a "hongbao" red packet feature, that allows users to send each other digital yuan-filled red packets. This comes just a month ahead of the Lunar New Year, when the Chinese traditionally give out red envelopes filled with cash to family and friends as a symbol of well wishes. The e-CNY app has been available in limited trials since 2020, but it continues to be an uphill battle to convince the Chinese public to use it. Digital yuan transactions hit $88 billion yuan ($12 billion) at the end of 2021, crossed the $100 billion yuan threshold at the end of August 2022.
#Fintech#CBDC#Asia#China#DFC
·scmp.com·
e-CNY wallet borrows Alipay and WeChat Pay’s electronic red packet feature to woo users
Turkish central bank digital lira project update
Turkish central bank digital lira project update
Central Bank of the Republic of Turkey (CBRT) provided an update on the proof-of-concept phase of its Digital Turkish Lira Project. Payment transactions were successfully executed on the Digital Turkish Lira Network, and in the first quarter of 2023, closed-circuit tests will be carried out with technology stakeholders. The findings obtained from the tests will be shared with the public in a comprehensive evaluation report. The tests will then be expanded later in 2023 to include selected banks and financial technology companies, followed by broad participation pilot tests. Tests will include checking out how the distributed ledger technology (DLT) based platform will integrate with existing payment ecosystems. Also, throughout 2023, priority will be given to the legal framework and building out digital identification infrastructure.
#Fintech#CBDC#Turkey#DFC
·tcmb.gov.tr·
Turkish central bank digital lira project update
Bank of England receives 20 applications to develop CBDC wallet prototype
Bank of England receives 20 applications to develop CBDC wallet prototype
"Twenty companies have submitted applications to create a digital wallet for the Bank of England’s CBDC project. The bank underlined its desire to pursue a central bank digital currency by putting a contract for a sample wallet out to tender only three weeks ago, setting a deadline to complete applications by December 23. Despite the remarkably tight turnaround for the £200,000 five-month project, 28 applications were made, although eight didn’t pursue the contract bid beyond the deadline for questions on December 16. The completed applications are made up of nine SMEs and 11 ‘large’ companies." https://www.digitalmarketplace.service.gov.uk/digital-outcomes-and-specialists/opportunities/18948
#Fintech#CBDC#UnitedKingdom#DFC
·cityam.com·
Bank of England receives 20 applications to develop CBDC wallet prototype
Former Chinese central banker says digital yuan ‘usage has been low’
Former Chinese central banker says digital yuan ‘usage has been low’
Xie Ping, a former People's Bank of China (PBOC) research director, made critical public comments about China’s central bank digital currency (CBDC) at a recent university conference. After launching in 2020, e-CNY transactions hit $88 billion yuan ($12 billion) at the end of 2021, after which growth slowed down significantly, only crossing the $100 billion yuan threshold at the end of August 2022. Ping said existing digital retail payment platforms such as AliPay and WeChat Pay “have formed a payment market structure that have met needs for daily consumption”. Hence,  the e-CNY use case needs to expand from its current use as a cash substitute and opened to other uses such as the ability to pay for financial products or connected to more payment platforms to boost adoption. https://finance.caixin.com/2022-12-28/101982996.html
#Fintech#CBDC#Payments#AliPay#WeChat#Asia#China#DFC
·cointelegraph.com·
Former Chinese central banker says digital yuan ‘usage has been low’
Russia Digital Bill On Rubble New Power Plants Siberia Crypto Mining Miners Duma
Russia Digital Bill On Rubble New Power Plants Siberia Crypto Mining Miners Duma
A draft law dedicated to the digital ruble has reportedly been filed in the State Duma, the lower house of the Russian parliament. The law introduces rules to determine how the new form of national decree will be issued and amends a series of legal acts to facilitate its implementation. The "Currency Regulation and Currency Control" law will be amended to secure the digital ruble's legal tender status, and changes to the federal law on "Personal Data" will allow the central bank to tap into personal information without asking for consent.
#Fintech#CBDC#Russia#Privacy#DFC
·news.abplive.com·
Russia Digital Bill On Rubble New Power Plants Siberia Crypto Mining Miners Duma
Call for expressions of interest in participation in the digital euro scheme Rulebook Development Group
Call for expressions of interest in participation in the digital euro scheme Rulebook Development Group
The ECB/Eurosystem is inviting payments/finance experts to express their interest in contributing to the drafting of a rulebook for a digital euro scheme. Applicants will need to be nominated by a relevant European stakeholder association representing key players in the European retail payments market. Candidates will be selected based on their managerial experience in retail payments and the skills required for the role.
#Fintech#CBDC#Eurozone#DFC
·ecb.europa.eu·
Call for expressions of interest in participation in the digital euro scheme Rulebook Development Group
Moneda digital de Banxico se encuentra en fase inicial
Moneda digital de Banxico se encuentra en fase inicial
A Mexican central bank digital currency (CBDC) is reportedly still in its initial stages of development, with the general directorate of payment systems and market infrastructures indicating that it is still determining the requirements for its issuance. Also, in response to a transparency request made by El Sol de México, Banxico said that for the fiscal year of 2022 10.22 million pesos (about $535,000) were allocated to the central bank's CBDC project, obtained from the fees charged to financial institutions for using the Interbank Electronic Payment System.
#Fintech#CBDC#Mexico#DFC
·elsoldemexico.com.mx·
Moneda digital de Banxico se encuentra en fase inicial
Bank of England hires Consult Hyperion for CBDC projects
Bank of England hires Consult Hyperion for CBDC projects
The Bank of England (BoE) has engaged Consult Hyperion, on a pair of £100,000+ CBDC assignments. The contract award notices for Point-of-sale [PoS] proof-of-concept [PoC] consultancy services and Feasibility study service on the e-commerce of CBDC were published on the UK government’s Contracts Finder service. The website also shows that the BoE is currently working with Oliver Wyman to provide support on paper for research on digital currency and the MIT Digital Currency Initiative. Interestingly, all were awarded under nontransparent procurement processes that allow the BoE to avoid open tenders.
#Fintech#CBDC#UnitedKingdom#DFC
·globalgovernmentfintech.com·
Bank of England hires Consult Hyperion for CBDC projects
JAM-DEX facilitates Government Wage Payment Employment Generation (Christmas Work) Programme » Bank of Jamaica
JAM-DEX facilitates Government Wage Payment Employment Generation (Christmas Work) Programme » Bank of Jamaica
The Bank of Jamaica (BOJ) successfully used its JAM-DEX CBDC to pay wages to, and conduct of transactions by, select workers employed in the Christmas Work Programme from December 19 to 23, 2022. This involved  onboarding three contractors, more than 100 workers and 70 small merchants to the Lynk app within select communities. Onboarded merchants were primarily market vendors and owners of food shops, restaurants and bars.
#Fintech#CBDC#Jamaica#DFC
·boj.org.jm·
JAM-DEX facilitates Government Wage Payment Employment Generation (Christmas Work) Programme » Bank of Jamaica
CBDC: Expanding financial inclusion or deepening the divide?
CBDC: Expanding financial inclusion or deepening the divide?
The MIT Digital Currency Initiative (DCI) published a paper on how a central bank digital currency (CBDC) could be designed to improve access to financial services, and whether it makes economic sense for a central bank to issue CBDC as a means of promoting inclusion and what preconditions may be necessary for success. It argues that any digital currency is only as good for inclusion as the intermediaries through which people use it. Designing a CBDC that merely replicates the features of existing digital payment systems would not make a meaningful difference for financial inclusion.
#Fintech#CBDC#DFC
·dci.mit.edu·
CBDC: Expanding financial inclusion or deepening the divide?
Addressing the risks in crypto: laying out the options
Addressing the risks in crypto: laying out the options
A Bank of International Settlements (BIS) paper suggests that authorities can take three different approaches when it comes to crypto-assets; targeted regulation, containment ("let crypto burn"), or  a complete ban. Central banks and public authorities could also work to make traditional finance (TradFi) more attractive. A key option is to encourage sound innovation with central bank digital currency (CBDC).
#Fintech#CryptoAssets#Regulation#CBDC#DFC
·bis.org·
Addressing the risks in crypto: laying out the options
E-Yuan App Adds Payment Function for When Mobiles Are Offline, Out of Power
E-Yuan App Adds Payment Function for When Mobiles Are Offline, Out of Power
The People's Bank of China (PBOC) has added a new function to its e-CNY payment app so that select Android-based mobile phones can be still be used to make tap-to-pay payments without internet connection or power. Users need to activate the function in the e-yuan app, and can choose how many times it can be used and how much can be paid after their phone shuts down. A verification code needs to be entered on the device if a payment exceeds the code-free quota, and payment will continue only if it passes the system check. Users also can set payment limits in their phone settings. In addition, if users have lost their mobile phones they can log in to the e-yuan app on another mobile phone to suspend the payment-without-power function.
#Fintech#CBDC#Asia#China#Offline#DFC
·yicaiglobal.com·
E-Yuan App Adds Payment Function for When Mobiles Are Offline, Out of Power