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Belarus Central Bank considers launching CBDC
Belarus Central Bank considers launching CBDC
The National Bank of the Republic of Belarus is reportedly considering issuing a central bank digital currency (CBDC) with an official announcement likely by the end of the year. The central bank's chairman said that a digital ruble proof of concept (PoC) has already been developed. https://www.belta.by/economics/view/budet-li-v-belarusi-tsifrovoj-rubl-natsbank-rasskazal-o-perspektivah-562154-2023/
#Fintech#CBDC#Belarus#DFC
·ledgerinsights.com·
Belarus Central Bank considers launching CBDC
State Bank of India e-Rupee FAQ
State Bank of India e-Rupee FAQ
For digital rupee users, SBI has allowed Rs 100,000 holding limit for the wallet. Users can load or unload up to Rs 25,000 per day, as per the website. Up to 20 transfers including inward and outward payments are allowed in a day. Users can pay or collect up to Rs 10,000 (versus Rs 200,000 for UPI transactions). However, the upper limit may vary from one bank to another.
#Fintech#CBDC#India#DFC
·sbi.co.in·
State Bank of India e-Rupee FAQ
Bank of Japan CBDC PoC Phase 2 Results
Bank of Japan CBDC PoC Phase 2 Results
The Bank of Japan (BoJ) published the results of Phase 2 of its central bank digital currency (CBDC) proof-of-concept (PoC) that was conducted between April 2022 and March 2023. Although it is only available in Japanese, Norbert Gehrke wrote a summary of the report in English. The objective of the PoC Phase 2 was to uncover potential technical issues early as they relate to the basic functions covered in Phase 1. Some desirable peripheral functions not covered in Phase 1 were also added. Then, the technical implementation and processing performance was validated. https://www.boj.or.jp/paym/digital/dig230417a.pdf
#Fintech#CBDC#Japan#DFC
·medium.com·
Bank of Japan CBDC PoC Phase 2 Results
Uptake of e-CNY remains disappointing
Uptake of e-CNY remains disappointing
According to Changchun Mu, director of the People's Bank of China’s Digital Currency Institute, China’s e-CNY CBDC needs to be made more appealing and user friendly in order to satisfy market needs. He was speaking at the Bank for International Settlements (BIS) Innovation Summit on March 22, 2023 and gave a surprisingly frank assessment of the status of the e-CNY pilot project. https://www.bis.org/author/changchun_mu.htm
#Fintech#CBDC#China#DFC
·linkedin.com·
Uptake of e-CNY remains disappointing
Chinese city of Changshu plans to pay employees using digital yuan
Chinese city of Changshu plans to pay employees using digital yuan
Changshu city will reportedly start paying civil servants and people who work for public institutions with e-CNY central bank digital currency (CBDC) starting in May 2023. The move marks a major step to promote the use of the digital currency, in the face of many hurdles, including its limited use cases, and the public’s preference for popular digital payment platforms such as WeChat Pay and Alipay.
#Fintech#CBDC#China#Asia#DFC
·scmp.com·
Chinese city of Changshu plans to pay employees using digital yuan
Zimbabwe’s central bank to issue gold-backed digital currency: Report
Zimbabwe’s central bank to issue gold-backed digital currency: Report
The Reserve Bank of Zimbabwe (RBZ) is reportedly set to introduce a gold-backed digital currency to serve as legal tender in the country. The move will allow small amounts of Zimbabwean dollars to be exchanged for the digital gold token. RBZ Governor John Mangudya said that this will represent the first steps by the central bank towards using the country’s gold reserves to tame Zimbabwe dollar depreciation. https://www.sundaymail.co.zw/rbz-introduces-gold-backed-digital-currency
#Fintech#CryptoAssets#CBDC#Zimbabwe#DFC
·cointelegraph.com·
Zimbabwe’s central bank to issue gold-backed digital currency: Report
Russia drafts law to use digital assets for cross border payments
Russia drafts law to use digital assets for cross border payments
Russia’s parliament reportedly published a draft law as part of an experimental regime to support the use of digital assets for cross border payments to help evade sanctions, and reduce the FX risk associated with settling dollar and euro transactions in other currencies. Russia already has a legal framework for tokenized assets for domestic usage, but additional legislation is needed to allow their use for cross border settlements.
#Fintech#CBDC#CrossBorder#Russia#DFC
·ledgerinsights.com·
Russia drafts law to use digital assets for cross border payments
ECB publishes progress report on digital euro and its digital wallet
ECB publishes progress report on digital euro and its digital wallet
The European Central Bank (ECB) published the 3rd progress report on the digital euro, as well as the findings of focus groups on people’s views on the features of a potential digital wallet. The digital euro will be potentially available initially to euro area residents, merchants and governments, it could be made available via existing banking apps and a Eurosystem app, and offline and person-to-person payments were seen as highly valued.
#Fintech#CBDC#Eurozone#Offline#Wallets#DFC
·ecb.europa.eu·
ECB publishes progress report on digital euro and its digital wallet
A digital euro: widely available and easy to use
A digital euro: widely available and easy to use
"With cash, central banks already provide a means of payment that is risk-free, widely accessible and easy to use, and that leaves no-one behind. But the rapid digitalisation of our economies requires us to complement cash with its evolution in the digital sphere: a digital euro. As a central bank, we need to be ready for future evolutions and make sure that the money we issue maintains its role as a monetary anchor in the digital era, thereby reassuring us that one euro is one euro whatever form it takes and wherever we go. And it cements people's trust in our currency."
#Fintech#CBDC#Eurozone#DFC
·ecb.europa.eu·
A digital euro: widely available and easy to use
Offline Digital Currency Technical Considerations
Offline Digital Currency Technical Considerations
In this month’s Central Bank Payment News (CBPN) spotlight, I wrote about past experiments with offline digital payments, technical considerations for offline digital currency, and what the future might hold for offline central bank digital currency (CBDC).
#Fintech#CBDC#Offline#DFC
·cbpn.currencyresearch.com·
Offline Digital Currency Technical Considerations
eCurrency announces Centralized CBDC capability
eCurrency announces Centralized CBDC capability
"eCurrency Mint Inc. announces the release of the eCurrency Centralized CBDC platform to complement its Decentralized and Hybrid CBDC platforms. With this release, the company can support the full spectrum of central bank CBDC deployment options. eCurrency Mint is the leading CBDC technology provider enabling central banks to securely mint, issue, distribute and monitor digital currency. CBDC is the digital form of legal tender and a direct liability of the central bank. "
#Fintech#CBDC#eCurrency#DFC
·prnewswire.com·
eCurrency announces Centralized CBDC capability
Bank of Mauritius to launch retail CBDC pilot in November
Bank of Mauritius to launch retail CBDC pilot in November
The Bank of Mauritius (BoM) is launching a Digital Rupee retail central bank digital currency (CBDC) in November 2023. It will be non-interest bearing and in the initial phase restricted to domestic use only, with cross-border transactions to be considered in a subsequent phase.  The central bank cited as motivations protecting monetary sovereignty and supporting anti-money laundering and countering the financing of terrorism (AML/CFT) efforts.  Also, according to the BoM, it is the first central bank to benefit from IMF technical assistance in this respect.
#Fintech#CBDC#Africa#Mauritius#DFC
·bom.mu·
Bank of Mauritius to launch retail CBDC pilot in November
National Digital ID Is A Foundation For CBDC
National Digital ID Is A Foundation For CBDC
"Whatever the advantages or disadvantages of central bank digital currency (CBDC), we aren’t going to get one anytime soon because we lack one of the crucial building blocks for a national digital currency that can deliver benefits to the new economy, and that is digital identity. If you want a case study, look at Sweden."
#Fintech#CBDC#DigitalID#DFC
·forbes.com·
National Digital ID Is A Foundation For CBDC
Eurosystem to explore new technologies for wholesale central bank money settlement
Eurosystem to explore new technologies for wholesale central bank money settlement
The European Central Bank (ECB) announced that the Eurosystem will look into how wholesale financial transactions recorded on distributed ledger technology (DLT) platforms could be settled in central bank money (i.e., wholesale central bank digital currency (CBDC)). The purpose of this initiative is to (i) consolidate and further develop the ongoing work of Eurosystem central banks in this area, and (ii) gain insight into how different solutions could facilitate interaction between TARGET services and DLT platforms.
#Fintech#CBDC#Eurozone#wCBDC#DFC
·ecb.europa.eu·
Eurosystem to explore new technologies for wholesale central bank money settlement
Central Bank opens registration for digital real digital technical testing
Central Bank opens registration for digital real digital technical testing
The Banco Central do Brasil (BCB) has opened the registration period for Brazilian financial institutions  to participate in digital real technical testing, in accordance with BCB Resolution No. 315/2023, published on April 27, 2023. The testing will involve no real transactions (so it isn’t a pilot). Its aim is to validate the use of a DLT solution on the Hyperledger Besu platform, evaluating programmability and the ability to comply with legal and regulatory requirements, mainly related to privacy,  as well as its technological viability. https://www.bcb.gov.br/estabilidadefinanceira/real-digital-piloto
#Fintech#CBDC#Brazil#DFC
·thenationview.com·
Central Bank opens registration for digital real digital technical testing
Zimbabwe central bank to issue gold-backed digital coins in May
Zimbabwe central bank to issue gold-backed digital coins in May
The Reserve Bank of Zimbabwe (RBZ) will introduce a gold-backed digital currency on May 8. They will not be pegged to any of the country's units of account (Zimbabwe dollars, U.S. dollars and South African rand). The digital coins will be priced 20% above market and marketed as investments. However, digital wallets will be made available in a later phase to facilitate person-to-person payments with them.
#Fintech#CBDC#Gold#Zimbabwe#DFC
·rbz.co.zw·
Zimbabwe central bank to issue gold-backed digital coins in May
About - Otranto Limited
About - Otranto Limited
"Otranto is a full-service consultancy focusing on strategy, management, technical, and information security advisory services."
#Fintech#CBDC#DFC
·otran.to·
About - Otranto Limited
Is the UCC Paving the Way for a CBDC?
Is the UCC Paving the Way for a CBDC?
"Changes to the Uniform Commercial Code (UCC) are not usually headline news, but recent changes around the UCC’s definition of money have been catching attention across the country. Concerns have erupted around the idea that states are quietly banning Bitcoin and paving the way for central bank digital currencies (CBDCs)."
#Fintech#CBDC#UCC#DFC
·cato.org·
Is the UCC Paving the Way for a CBDC?
What business model for the Digital Euro? Lessons from Brazil and Switzerland
What business model for the Digital Euro? Lessons from Brazil and Switzerland
"A central bank orchestrated payment system without system-specific payment assets meets most of the central banks’ reasons for issuing CBDCs. It provides monetary and strategic autonomy for a critical infrastructure and meets user demand for digital payment solutions. As the example of Pix shows, such a system can compete successfully with existing and new payment services."
#Fintech#CBDC#PIX#FastPayments#Eurozone#DFC
·suerf.org·
What business model for the Digital Euro? Lessons from Brazil and Switzerland
Digital euro legislative proposal delayed
Digital euro legislative proposal delayed
A digital euro legislative proposal was to be published on May 24, 2023, but it has now been delayed until June 28, 2023.  It will be published alongside documents pertaining to data access in financial services and the revision of European Union (EU) rules on payment services.
#Fintech#CBDC#Eurozone#DFC
·ec.europa.eu·
Digital euro legislative proposal delayed
North Carolina joins FL, SD against digital dollar
North Carolina joins FL, SD against digital dollar
The North Carolina (NC) House of Representatives and the Florida House of Representatives and Senate approved anti-central bank digital currency (CBDC) legislation.  The NC legislation prohibits individuals from using CBDCs for any payments to the state, and bars the Federal Reserve from using NC as a potential CBDC pilot testing ground. The Florida legislation excludes CBDC from the definition of “money” for purposes of the Uniform Commercial Code (UCC). The Cato Institute's Nicholas Anthony has written a nice explainer on the impact of the UCC on digital currency in general, and the Uniform Law Commission has published a paper that covers the CBDC impact specifically. https://www.cato.org/blog/ucc-paving-way-cbdc https://higherlogicdownload.s3.amazonaws.com/UNIFORMLAWS/b7c515db-1895-4387-bb2d-ee99e58c0066/UploadedImages/Documents/ULC_Statement_on_the_UCC_and_CBDCs.pdf
#Fintech#CBDC#UnitedStates#UCC#LegalTender#DFC
·kitco.com·
North Carolina joins FL, SD against digital dollar
Nigeria using eNaira CBDC to disperse aid, including farmer loans
Nigeria using eNaira CBDC to disperse aid, including farmer loans
In March 2023, the Central Bank of Nigeria unveiled plans to assist local farmers with loans for farm tools using the eNaira digital wallet. The “Agro eNaira Wallet Engagement” project aims to provide Nigerian farmers with a “transparent, accountable, and efficient” platform to access government aid and lending programs. These funds will allow small farmers to obtain loans to purchase tools and equipment using the eNaira digital wallet and will likely be disbursed via local agro-dealers. https://www.cbn.gov.ng/out/2023/ccd/cbn%20update%202023%20march%20edition.pdf
#Fintech#CBDC#Africa#Nigeria#DFC
·ledgerinsights.com·
Nigeria using eNaira CBDC to disperse aid, including farmer loans
Zimbabwe sets price to sell gold-backed digital tokens
Zimbabwe sets price to sell gold-backed digital tokens
The Reserve Bank of Zimbabwe (RBZ) will start selling its gold-backed digital currency on May 8, 2023. Applications must be for a minimum of US$10 and US$5,000 for individuals and corporates and other entities, respectively, in U.S. dollars and local currency. The US dollar price will be "informed or guided" by the international gold price as determined by the London Bullion Market Association PM fix. Payment in local currency will be at a 20% margin above the willing-buyer willing-seller interbank mid-rate. Applications will close on May 10, 2023. https://www.rbz.co.zw/documents/press/2023/May/Gold-Backed_Digital_Tokens_Prospectus_-_4_May_2023_1.pdf
#Fintech#CBDC#Gold#Zimbabwe#DFC
·cointelegraph.com·
Zimbabwe sets price to sell gold-backed digital tokens
Reserve Bank of India and BIS launch G20 TechSprint 2023
Reserve Bank of India and BIS launch G20 TechSprint 2023
The Reserve Bank of India (RBI) and the Bank for International Settlements Innovation Hub (BISIH) have launched the fourth edition of the G20 TechSprint, a global technology competition to promote innovative solutions aimed at improving cross-border payments. Developers from around the world should submit application from May 04, 2023 to June 04, 2023 and the TechSprint will conclude around August/ September 2023. The 2023 TechSprint will focus on AML/CFT/Sanctions technology solutions to reduce illicit finance risk, FX and liquidity technology solutions to enable settlement in emerging market and developing economy (EMDE) currencies, and technology solutions for multilateral cross-border CBDC platforms.
#Fintech#CBDC#Payments#CrossBorder#BIS#India#DFC
·rbi.org.in·
Reserve Bank of India and BIS launch G20 TechSprint 2023
Nearly half of Americans think their money isn't safe in a bank
Nearly half of Americans think their money isn't safe in a bank
According to a poll released on May 4, 2023 by Gallup, 48% of U.S. adults are concerned with their money, broken down into 19% who are “very” worried and 29% who are “moderately” worried, despite the fact that the Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per borrower, per bank. On the other hand, 30% selected “not too worried” and 20% are “not worried at all.” The poll was conducted between April 3 and April 25 following the collapse of Silicon Valley Bank in March. Americans with no college degree tended to be more worried at 54% while only 36% of college graduates expressed concern.
#Fintech#CBDC#Banks#FDIC#UnitedStates#DFC
·fastcompany.com·
Nearly half of Americans think their money isn't safe in a bank
BCB releases the directives of the pilot project of the Brazilian Digital Real technical testing
BCB releases the directives of the pilot project of the Brazilian Digital Real technical testing
The Banco Central do Brasil (BCB) published the details of its digital real central bank digital currency (CBDC) technical testing. It will involve no real transactions (so it isn't a pilot). Its aim is to validate the use of a DLT solution on the Hyperledger Besu platform, evaluating programmability and the ability to comply with legal and regulatory requirements, mainly related to privacy, as well as its technological viability. The details include the criteria for selecting the ten participating institutions.
#Fintech#CBDC#Brazil#DFC
·bcb.gov.br·
BCB releases the directives of the pilot project of the Brazilian Digital Real technical testing
Hungary takes a novel approach to blockchain testing
Hungary takes a novel approach to blockchain testing
Magyar Nemzeti Bank has collaborated with the Sovereign Official Digital Association (SODA) to issue non-fungible tokens (NFTs) on a private blockchain. By successfully participating in financial literacy quizzes, Hungarian coin collectors and NFT enthusiasts are being awarded central bank-issued tokens and then swapping and trading them on the Money Museum mobile application. This is part of a contest to win a set of limited edition commemorative coins. As any member of the public can use the blockchain to collect, swap and register their ownership of the coins, this type of activity – though gamified – this is arguably a central bank digital currency (CBDC) pilot.
#Fintech#CBDC#Hungary#NFT#DFC
·omfif.org·
Hungary takes a novel approach to blockchain testing
Overseas Territories and Dependencies of the World
Overseas Territories and Dependencies of the World
An overseas territory or dependency is a region with ties abroad to a sovereign nation—not a completely independent state, but also not a constituent part or administrative subdivision of the parent country. This graphic maps the overseas territories of various countries, using a variety of sources including WorldAtlas, Statista, and official country releases. There are a total of 71 overseas territories listed on the map spread across the world.
#CBDC#Fintech#DFC
·visualcapitalist.com·
Overseas Territories and Dependencies of the World
A Simple Model of a Central Bank Digital Currency
A Simple Model of a Central Bank Digital Currency
The National Bureau of Economic Research (NBER) published a paper that highlights the trade-offs between physical and digital forms of retail central bank money based on a general equilibrium model. It finds that the key differences between cash and central bank digital currency (CBDC) include transaction efficiency, possibilities for tax evasion, and, potentially, nominal rates of return. It establishes conditions under which cash and CBDC can co-exist and shows how government policies can influence relative holdings of cash, CBDC, and other assets. The paper illustrates how a CBDC can facilitate negative nominal interest rates and helicopter drops, and also how a CBDC can be structured to prevent capital flight from other assets.
#Fintech#CBDC#DFC
·nber.org·
A Simple Model of a Central Bank Digital Currency
Mapping the privacy landscape for central bank digital currencies
Mapping the privacy landscape for central bank digital currencies
An article by Raphael Auer, Rainer Böhme, Jeremy Clark and Didem Demirag explores the multiple dimensions of retail CBDC privacy considerations. They point to the number of distinct stakeholders, combined with the technical challenges, as possibly responsible for stalling progress toward deploying retail CBDC. One step forward is understanding who the key stakeholders are and what their interests are in payment records. Knowledge of conflicting interests is helpful for developing requirements and narrowing the range of technical solutions. This article contributes to the literature by identifying three stakeholder groups - privacy enthusiasts, law enforcement, and data holders - and exploring their conflicts. A main insight is that nuanced data-access policies are best to resolve the conflicts, which in turn rule out many technical solutions that promise “hard privacy,” meaning solutions relying on cryptography and user-guarded secrets without room for human discretion. This observation shifts attention to a softer form of privacy-enhancing technologies, which gives authorized stakeholders the capability to access certain payment records in plaintext under defined circumstances. Such a system depends on compliance and accountability, supported with technically enforced access control, limited retention periods, and audits. This is referred to as “soft privacy". See also: https://dl.acm.org/doi/pdf/10.1145/3561796
#Fintech#CBDC#Privacy#BIS#DFC
·pulpspy.com·
Mapping the privacy landscape for central bank digital currencies