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Central banks bow to the inevitability of digital currencies
Central banks bow to the inevitability of digital currencies
What principles should guide the next phase of CBDC development? First, clarity about the value proposition for users. In many countries, there simply isn’t demand for central bank money for retail payments. China’s payment giants (Alipay, WeChat Pay) and India’s Unified Payments Interface have made low-cost digital payments easily and widely available. In the US, the Federal Reserve’s instant payment service FedNow will increase the system’s efficiency and resilience... Still, a well-designed CBDC could play an incremental role in catalysing payments innovation. Other advantages, such as the ability to facilitate payments using near-field communication even when cellular and wireless networks are down, could also be played up.
#Fintech#CBDC#DFC
·ft.com·
Central banks bow to the inevitability of digital currencies
CBDC and privacy
CBDC and privacy
The European Data Protection Supervisor recently published a tech dispatch on CBDCs and privacy. It recommends that a CBDC should follow a clear data protection by design and by default approach. If this is not ensured, a CBDC can be a systemic risk for profiling and surveilling users. For a CBDC, privacy enhancing technologies, including advanced pseudonymisation techniques and zero-knowledge proof, should be used to minimize the information shared between transaction partners. https://edps.europa.eu/data-protection/our-work/publications/techdispatch/2023-03-29-techdispatch-12023-central-bank-digital-currency_en
#Fintech#CBDC#Privacy#Europe#DFC
·linkedin.com·
CBDC and privacy
Bank of Canada launches public consultations on a digital dollar
Bank of Canada launches public consultations on a digital dollar
The Bank of Canada (BoC) launched an online public consultation on the features that could be included in a digital Canadian dollar. The BoC is also seeking opinions about how people would likely use a digital dollar, what security features are important, and what concerns they have about accessibility and privacy. The BoC says that, at this time, a digital dollar is not needed, but Canada may need one in the future, so BoC wants to be ready.
#Fintech#CBDC#Canada#DFC
·bankofcanada.ca·
Bank of Canada launches public consultations on a digital dollar
Minutes of the CBDC Technology Forum - March 2023
Minutes of the CBDC Technology Forum - March 2023
"The Bank of England presented a summary of the Consultation Paper and the accompanying Technology Working Paper, published on 7 February 2023. The presentation covered the proposed distribution model, technology design considerations and conceptual architecture for a UK CBDC, called the digital pound."
#Fintech#CBDC#UnitedKingdom#DFC
·bankofengland.co.uk·
Minutes of the CBDC Technology Forum - March 2023
Visa uses CBDC for programmable finance prototype for farmers
Visa uses CBDC for programmable finance prototype for farmers
Visa developed a programmable finance platform that allows Brazilian soybean farmers to securely fund and sell their crop harvests on a permissioned version of the Ethereum blockchain. Partnering with Agrotoken, Microsoft, and Sinqia, Visa was one of nine finalists tasked with exploring innovative blockchain-based use cases for Brazil's real digital central bank-issued digital currency (CBDC) as part of the Banco Central do Brasil's most recent LIFT Challenge. The CBDC's programmability allows delivery and payment of assets and currencies to be automatically settled only when certain conditions are met, for more efficient capital usage and reduced counterparty risks. https://usa.visa.com/about-visa/newsroom/press-releases.releaseId.19706.html
#Fintech#CBDC#Brazil#Blockchain#DFC
·finextra.com·
Visa uses CBDC for programmable finance prototype for farmers
ECB calls for candidates to participate in the digital euro workstreams
ECB calls for candidates to participate in the digital euro workstreams
The European Central Bank (ECB) is inviting relevant experts to contribute to two new digital euro scheme rulebook workstreams. The first one is focused on identification and authentication the second on infrastructure-related requirements (e.g., IT security, connectivity, reconciliation, and end-to-end service level requirements, plus key performance indicators). Participation will not be remunerated, although an earlier version of the announcements said that participants will not be reimbursed for travel and subsistence expenses in connection with their attendance at workstream meetings, which have now been specified as all virtual. https://www.ecb.europa.eu/paym/intro/news/html/ecb.mipnews230508_1.en.html https://www.ecb.europa.eu/paym/intro/news/html/ecb.mipnews230508_2.en.html
#Fintech#CBDC#Eurozone#DFC
·ecb.europa.eu·
ECB calls for candidates to participate in the digital euro workstreams
Laboratory of Financial and Technological Innovations
Laboratory of Financial and Technological Innovations
"FINANCIAL AND TECNPOLOGICAL INNOVATIONS LABORATORY (LIFT) is an applied research laboratory, configured as a virtual collaborative environment. LIFT aims to foster technological innovation research projects related to the financial industry and supervisory and regulatory activities carried out by the Central Bank of Brazil with the objective of introducing mechanisms for improvement and innovation. As part of LIFT, the LIFT paper magazine is a biannual publication containing the result of the projects developed in laboratories and articles of experts on topics related to innovation in the National Financial System. "
#Fintech#CBDC#Brazil#DFC
·revista.liftlab.com.br·
Laboratory of Financial and Technological Innovations
ISO 20022 Data Model Holds the Key to CBDC Interoperability
ISO 20022 Data Model Holds the Key to CBDC Interoperability
"The achievement of policy aims associated with a CBDC will require adoption by end users. The user value proposition relies in large part on frictionless satisfaction of key payments use cases. The associated CBDC transactions necessitate interoperability along — and most crucially between — payment rails. Harmonization of data models, via international standardization efforts, is a necessary underpinning of effective interoperability."
#Fintech#CBDC#Interoperability#ISO20022#DFC
·progressoft.com·
ISO 20022 Data Model Holds the Key to CBDC Interoperability
The Role of Central Bank Digital Currencies in Financial Inclusion
The Role of Central Bank Digital Currencies in Financial Inclusion
The Asian Development Bank (ADB) published a paper that explores the potential for central bank digital currency (CBDC) to help promote financial inclusion. It considers how CBDC could leverage digital finance technologies and enhance the reach and value of formal financial products and services among the unbanked or underserved. It also looks at the challenges involved and how these could be addressed. The paper provides recommendations for policy makers and regulators on designing CBDCs, establishing preconditions, and managing risk.
#Fintech#CBDC#FinancialInclusion#Asia-Pacific#DFC
·adb.org·
The Role of Central Bank Digital Currencies in Financial Inclusion
Jonas Gross commentary on the ECB 3rd digital euro progress report
Jonas Gross commentary on the ECB 3rd digital euro progress report
"The European Central Bank published its third progress report on the investigation phase of a digital euro, a #CBDC for the euro area. The report discusses the Eurosystem’s perspectives and recommendations on the digital euro access, holdings and onboarding, distribution and functionalities"
#Fintech#CBDC#Eurozone#DFC
·linkedin.com·
Jonas Gross commentary on the ECB 3rd digital euro progress report
IMF Cautions Zimbabwe Against Plan for Gold-Backed Digital Money
IMF Cautions Zimbabwe Against Plan for Gold-Backed Digital Money
The IMF has reportedly called on the Reserve Bank of Zimbabwe to carefully consider the benefits of issuing a gold-backed digital currency versus the potential macroeconomic, financial stability, governance, legal and operational risks, plus the cost of forgone FX reserves. The IMF urged country authorities to rather use conventional measures to address economic challenges, such as maintaining a tight monetary-policy stance and accelerating the liberalization of the foreign-currency market.
#Fintech#CBDC#Gold#Zimbabwe#IMF#DFC
·bloomberg.com·
IMF Cautions Zimbabwe Against Plan for Gold-Backed Digital Money
BIS publishes guide on offline CBDC use
BIS publishes guide on offline CBDC use
The BIS Innovation Hub published a handbook on offline central bank digital currency (CBDC). It covers the complex matrix of issues including security, privacy, likely risks, the types of solution, their maturity and applicability, and operational factors, as well as objectives for resilience, inclusion, cash resemblance, accessibility and other desired attributes. The degree to which CBDCs will be provided or used offline will vary significantly by country, region, demographics and specific contexts, which will also influence the solutions chosen. https://www.bis.org/publ/othp64.htm
#Fintech#CBDC#Offline#BIS#DFC
·finextra.com·
BIS publishes guide on offline CBDC use
"Enabling Offline Payments in an Online World: Privacy Considerations"
"Enabling Offline Payments in an Online World: Privacy Considerations"
Lipis Advisors published a paper that explores potential enhanced privacy benefits of offline payment functionality. One key takeaway is that it is important that payment system operators consider how other facets of the system design (e.g., security, interoperability) interact with privacy and how these different aspects should be prioritized.
#Fintech#CBDC#Offline#Crunchfish#DFC
·lipisadvisors.com·
"Enabling Offline Payments in an Online World: Privacy Considerations"
Cash And Car Keys Work Offline: This Means Digital Wallets Must Too
Cash And Car Keys Work Offline: This Means Digital Wallets Must Too
"Digital cash, just like digital car keys, has to work offline. That is, I need to be able to get into my car and drive off where there is no mobile signal and I need to be able to buy milk if the internet is down or if the power is out at the grocery store. Fortunately, we have the technology and Apple and Google are building with it."
#Fintech#CBDC#Offline#IoT#DFC
·forbes.com·
Cash And Car Keys Work Offline: This Means Digital Wallets Must Too
Governor Ron DeSantis Signs Bill Prohibiting Use of Central Bank Digital Currencies in Florida – Bitcoin News
Governor Ron DeSantis Signs Bill Prohibiting Use of Central Bank Digital Currencies in Florida – Bitcoin News
"On Friday Florida’s governor Ron DeSantis signed legislation that bans the use of a central bank digital currency (CBDC) in the state. Following the bill SB 7054 being signed into law, Florida’s Uniform Commercial Code (UCC) now explicitly forbids the use of a federally adopted CBDC as money."
#Fintech#CBDC#Regulation#UnitedStates#DFC
·news.bitcoin.com·
Governor Ron DeSantis Signs Bill Prohibiting Use of Central Bank Digital Currencies in Florida – Bitcoin News
CBDC and business cycle dynamics in a New Monetarist New Keynesian model
CBDC and business cycle dynamics in a New Monetarist New Keynesian model
The European Central Bank (ECB) published a paper on the impact of an interest-bearing central bank digital currency (CBDC) on the economy. It integrates a New Monetarist-type decentralized market that accounts for the means-of-exchange function of bank deposits and CBDC into a New Keynesian model with financial frictions. It concludes that the introduction of an interest-bearing CBDC does not impair monetary policy transmission. Also it stabilizes the liquidity premium, thereby affecting bank funding conditions and the opportunity costs of money, which dampens and smooths the reaction of investment and consumption to macroeconomic shocks.
#Fintech#CBDC#ECB#DFC
·ecb.europa.eu·
CBDC and business cycle dynamics in a New Monetarist New Keynesian model
CBDCs: Pros and Cons - A Comprehensive List and Discussion
CBDCs: Pros and Cons - A Comprehensive List and Discussion
"Central bank digital currencies (CBDCs) have the potential to fundamentally alter the current monetary system. Potentially they could bring about a whole range of advantages compared to the status quo, yet they could also introduce a host of disadvantages. This text provides a comprehensive list of the pros and cons of CBDC along with a description of every single positive or negative outcome. Finally, it weighs the benefits and drawbacks of this new form of legal tender against each other. "
#Fintech#CBDC#DFC
·papers.ssrn.com·
CBDCs: Pros and Cons - A Comprehensive List and Discussion
G-7 Finance Ministers Show Support for FSB, IMF Crypto Norms
G-7 Finance Ministers Show Support for FSB, IMF Crypto Norms
The Group of Seven (G-7) has signaled its commitment to implementing the forthcoming Financial Stability Board (FSB) crypto-asset regulatory norms and IMF central bank digital currency (CBDC) recommendations. The FSB is expected to finalize its high-level crypto-asset recommendations by July 2023. The first installments of the IMF  “Retail CBDC Handbook”, to be produced in close cooperation with and drawing from the inputs of experts and stakeholders including other international organizations, standard setters and national authorities, will be published by the October 2023 IMF/World Bank Annual Meetings. https://www.consilium.europa.eu/media/64307/g7-communique-20230513.pdf
#Fintech#CryptoAssets#CBDC#G7#FSB#IMF#Regulation#DFC
·coindesk.com·
G-7 Finance Ministers Show Support for FSB, IMF Crypto Norms
The digital euro: a solution seeking a problem?
The digital euro: a solution seeking a problem?
A Financial Times (FT) article documented rising public opposition to a digital euro, as the European Central Bank (ECB) struggles to communicate convincing arguments for the central bank digital currency (CBDC) project. The ECB says a digital euro would modernize European payments by giving people an electronic alternative to cash that is riskless and universally accepted. However, detractors don’t see any big market failures that require the public sector to step in, and given that the eurozone’s payment options are already reliable and innovative. There has also been CBDC pushback in other jurisdictions, most notably in the United States, where it has become a political hot potato on account of potential threats to privacy and self control.
#Fintech#CBDC#Eurozone#DFC
·ft.com·
The digital euro: a solution seeking a problem?
Nigeria’s eNaira, One Year After
Nigeria’s eNaira, One Year After
"This IMF paper reflects on the first year of the eNaira—the first CBDC in Africa. Despite the laudable undisrupted operation for the first full year, the CBDC project has not yet moved beyond the initial wave of limited adoption. Network effects suggest the initial low adoption spell will require a coordinated policy drive to break it. The eNaira’s potential in financial inclusion requires a strategy to set the right relationship with mobile money, given the former’s potential to either complement or substitute the latter. Cost savings from integrating CBDC—as a bridge vehicle—in the remittance process may also be substantial."
#Fintech#CBDC#Nigeria#Africa#DFC
·imf.org·
Nigeria’s eNaira, One Year After
The MNB Student Safe mobile application has been renewed
The MNB Student Safe mobile application has been renewed
The Magyar Nemzeti Bank (MNB) and the Money Compass Foundation launched a new version of the Student Safe mobile app, to increase financial literacy and strengthen digital financial inclusion among 8 to 14 year-olds. The new app, operated by the MNB and involving commercial banks, is now able to handle real money in the form of an MNB-issued central bank digital currency (CBDC). By successfully completing quizzes children can collect "tallérs" that can be redeemed for webshop (eMAG) vouchers. In addition, the new app allows users to transfer funds to bank accounts, and make QR-code payments. Parents can also send their children forints or student tallérs. https://penziranytu.hu https://perfinal.com
#Fintech#CBDC#Hungary#Europe#DFC
·mnb.hu·
The MNB Student Safe mobile application has been renewed
Perfinal and IDEMIA’s Partnership to Enable Secure and Reliable Offline Transactions
Perfinal and IDEMIA’s Partnership to Enable Secure and Reliable Offline Transactions
"Perfinal has partnered with leading payment solution provider IDEMIA, a global leader in offline CBDC wallet solutions, to offer joint solutions for central banks to launch and distribute CBDCs. This partnership represents an exciting step forward in the development of CBDCs, aligning with the European Central Bank’s guidelines for greater privacy and financial inclusion through offline transactions. The technical capabilities required for offline CBDCs demand a flexible account management system, and Perfinal’s partnership with IDEMIA’s offline wallet solution provides an optimal solution to these technical challenges. " https://perfinal.com
#Fintech#CBDC#Offline#IDEMIA#Perfinal#Vendor#DFC
·medium.com·
Perfinal and IDEMIA’s Partnership to Enable Secure and Reliable Offline Transactions
Ripple to demonstrate tokenization in HKMA e-HKD pilot program using new CBDC platform
Ripple to demonstrate tokenization in HKMA e-HKD pilot program using new CBDC platform
Ripple will reportedly participate in the Hong Kong Monetary Authority’s (HKMA’s) digital Hong Kong dollar (e-HKD) central bank digital currency (CBDC) pilot program by showcasing a real estate asset tokenization solution. Ripple will partner with Taiwan’s Fubon Bank and others to demonstrate equity release with tokenized assets using a retail version of the e-HKD CBDC. The pilot project will run on the new Ripple CBDC Platform, that uses a new private ledger with XRP Ledger technology and enhanced functionality, including offline transactions and non-smartphone use. It's the same platform that may be piloted in Bhutan, Montenegro and Palau.
#Fintech#CBDC#Ripple#HongKong#DFC
·cointelegraph.com·
Ripple to demonstrate tokenization in HKMA e-HKD pilot program using new CBDC platform
A legal framework for the digital euro
A legal framework for the digital euro
The European Parliament published a study that assesses the European Central Bank's (ECB's) first three progress reports on the digital euro from a legal perspective. It looks into what key design choices proposed by the ECB reveal in terms of the legal qualification of the digital euro and discusses legal aspects of the infrastructure supporting it. Overall, the objective of ensuring a strong monetary anchor in the financial system should take centre stage. A simple and cash-like design of the digital euro would not only aid that objective, but also reduce legal risk.
#Fintech#CBDC#Eurozone#DFC
·europarl.europa.eu·
A legal framework for the digital euro
Hong Kong Monetary Authority - Commencement of the e-HKD Pilot Programme
Hong Kong Monetary Authority - Commencement of the e-HKD Pilot Programme
The Hong Kong Monetary Authority (HKMA) today announced the commencement of the e-HKD central bank digital currency (CBDC) pilot programme. A total of 16 firms from the financial, payment and technology sectors have been selected to participate in the first round of pilots. The pilots will take deep dives into potential use cases in six categories, including full-fledged payments, programmable payments, offline payments, tokenised deposits, settlement of Web3 transactions and settlement of tokenised assets. https://www.hkma.gov.hk/media/eng/doc/key-information/press-release/2023/20230518e4a1.pdf
#Fintech#CBDC#HongKong#DFC
·hkma.gov.hk·
Hong Kong Monetary Authority - Commencement of the e-HKD Pilot Programme
NY Fed, MAS Verify CBDC Use for Cross-Border Payments
NY Fed, MAS Verify CBDC Use for Cross-Border Payments
According to a report published by New York Federal Reserve (NY Fed) and Monetary Authority of Singapore (MAS), wholesale central bank digital currency (CBDC) systems operating on different types of networks can be used for cross-border and cross-currency payments. The study, which used simulated CBDCs and hypothetical payments, found that cross-border transactions could be conducted across different distributed ledger (DLT) and hashed timelock contract (HTLC) technology stacks, with near real-time settlement finality.
#Fintech#CBDC#wCBDC#CrossBorder#Payments#UnitedStates#Singapore#DFC
·coindesk.com·
NY Fed, MAS Verify CBDC Use for Cross-Border Payments
Ripple improves the capabilities of its CBDC platform
Ripple improves the capabilities of its CBDC platform
Ripple has enhanced its CBDC Platform launched in March 2022, that is based on the private ledger private version of the public, open-source XRP Ledger. The enhancements enable issuers to manage the full life cycle of their fiat based digital currency, from minting and distribution to redemption and destruction, taking advantage of the XRP Ledger’s built-in multi-signing capabilities. It's billed as a "full stack" platform in that it manages the full CBDC lifecycle, including the provision of end-user wallets. https://www.businesswire.com/news/home/20230518005115/en/Ripple-Launches-CBDC-Platform-for-the-Development-of-CBDCs-and-Stablecoins
#Fintech#CBDC#Ripple#DFC
·thepaypers.com·
Ripple improves the capabilities of its CBDC platform
Samsung explores offline CBDC that works with Galaxy phones
Samsung explores offline CBDC that works with Galaxy phones
"Samsung said it has signed a memorandum of understanding with South Korea’s central bank to conduct technical research on a central bank digital currency. Payments could be made between devices through the use of near-field communication technology, which is built into smartphones to enable contactless payments, Samsung said."
#Fintech#CBDC#Offline#Japan#DFC
·cnbc.com·
Samsung explores offline CBDC that works with Galaxy phones