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Principles for creating “Acceptance” and “Network Effect” for a Digital Shekel
Principles for creating “Acceptance” and “Network Effect” for a Digital Shekel
The Bank of Israel (BoI) published a paper on how to ensure that a potential central bank digital currency (CBDC) is broadly adopted. The characteristics that should increase digital shekel adoption and network effects among users include (i) making it possible to receive (make) payments from (to) the State, (ii) providing an efficient and convenient payment experience, and (iii) making it broadly useful  for payment between individuals (P2P) including offline. Also, costs to merchants should be less than existing alternatives, and should streamline their operational processes such as the payment of taxes. In addition, defining a digital shekel as “legal tender” will help provide the currency with the status that the public attributes to cash, and thereby support its broader acceptance.
#Fintech#CBDC#Israel#DFC
·boi.org.il·
Principles for creating “Acceptance” and “Network Effect” for a Digital Shekel
Update on the Bahamas Sand Dollar
Update on the Bahamas Sand Dollar
The Central Bank of The Bahamas  (CBOB) published a Sand Dollar update in late May. During April and May 2023 they continued with more accelerated outreach, and technical developments to extend proprietary wallet access to the Bahamas Automated Clearing House (ACH) via the Sand Dollar infrastructure were completed. Meanwhile, the first iteration of Wallet 2.0, which will permit user self-activation, progressed to beta testing, with a general release targeted for the middle of the summer of 2023.
#Fintech#CBDC#Bahamas#DFC
·centralbankbahamas.com·
Update on the Bahamas Sand Dollar
The digital euro: A precautionary device, not a deus ex machina
The digital euro: A precautionary device, not a deus ex machina
The Leibniz Institute for Financial Research SAFE published a paper that weighs the pros and cons of a possible digital euro. It concludes that, if the decision on adoption had to be taken today, the arguments against would outweigh those in favor. However, a reasonable case can be made that having in place digital payment infrastructures at the central bank, potentially accessible by a very large user base, may help overcome adverse contingencies. The related operational and legal infrastructures require a long preparatory phase. Preparing in advance can therefore be useful, even though the eventual use may appear uncertain or even unlikely.
#Fintech#CBDC#Eurozone#DFC
·safe-frankfurt.de·
The digital euro: A precautionary device, not a deus ex machina
ECCB pleased with progress of digital currency initiative
ECCB pleased with progress of digital currency initiative
Eastern Caribbean Central Bank (ECCB) Governor Timothy Antoine reportedly says he is pleased with the performance of its DCash central bank digital currency (CBDC) pilot aimed at improving financial inclusion and modernizing payment systems. He said that partnerships with licensed financial institutions and regional businesses and organizations have enabled DCash to expand its reach, enhance platform features, and ensure regional impact.
#Fintech#CBDC#Caribbean#ECCB#DFC
·trinidadexpress.com·
ECCB pleased with progress of digital currency initiative
Privacy-Preserving Post-Quantum Credentials for Digital Payments
Privacy-Preserving Post-Quantum Credentials for Digital Payments
The Bank of Canada published a paper that proposes a pseudonymous credential scheme for use in payment systems to protect users from fraud and abuse while retaining privacy in individual transactions. The scheme is privacy-preserving, efficient for practical applications, and hardened against quantum computing attacks. A practical and interactive credential mechanism was constructed, in which users are issued pseudonymous credentials against their personally identifiable information that can be used to register with financial service providers without revealing personal information. The protocol is shown to be secure and free of information leakage, preserving the user’s privacy regardless of the number of registrations. Comparison reveals that the scheme is more efficient than equivalent, state-of-the-art post-quantum schemes.
#Fintech#CBDC#Canada#Payments#Privacy#QuantumComputing#DFC
·bankofcanada.ca·
Privacy-Preserving Post-Quantum Credentials for Digital Payments
Digital euro scheme Rulebook Development Group status update
Digital euro scheme Rulebook Development Group status update
The European Central Bank (ECB) published an update on the work of its digital euro scheme Rulebook Development Group (RDG) including progress with drafting based on the design choices endorsed by the ECB's Governing Council, and the group's next steps. The ultimate goal of the Group’s work is to define the roles and contributions of the different actors so that the desired digital euro functionalities and user experience can be coherently created by those different actors, while allowing for innovation and competition.
#Fintech#ECB#CBDC#Eurozone#DFC
·ecb.europa.eu·
Digital euro scheme Rulebook Development Group status update
Some Lessons from Asian E-Money Schemes for CBDC Adoption
Some Lessons from Asian E-Money Schemes for CBDC Adoption
The IMF published a paper that synthesizes four lessons from the experiences of six Asian e-money schemes (Alipay and WeChat Pay in China; Paytm in India; and GoPay, GrabPay, and ShopeePay in Southeast Asia) for central banks as they consider CBDC issuance: CBDC should embody trust, convenience, efficiency, and security; CBDC service providers can facilitate adoption by leveraging digital technology, targeting use cases, developing business models, and complying with legal and regulatory requirements; central banks could incentivize CBDC service providers to develop these four channels when considering CBDC adoption; and central banks may be able to establish data-sharing arrangements that preserve privacy while leaving room for CBDC service providers to explore the economic value of data.
#Fintech#CBDC#IMF#DFC
·imf.org·
Some Lessons from Asian E-Money Schemes for CBDC Adoption
World needs a CBDC treaty, Cecchetti tells central bankers
World needs a CBDC treaty, Cecchetti tells central bankers
"Governments should consider an international moratorium on the development of central bank digital currencies (CBDCs) due to the financial stability risk they could pose for small jurisdictions, the former director of research at the Federal Reserve Bank of New York, Stephen Cecchetti, told central bankers in Finland on Thursday."
#Fintech#CBDC#DFC
·the-blindspot.com·
World needs a CBDC treaty, Cecchetti tells central bankers
Bank of England extends CBDC consultation deadline
Bank of England extends CBDC consultation deadline
The Bank of England (BoE) extended the deadline for comments on its public consultation for a central bank digital currency (CBDC) from June 7 to June 30, 2023, following an omission of a question regarding whether non-U.K. residents should have access to the digital pound, on the same basis as UK residents. https://www.bankofengland.co.uk/paper/2023/the-digital-pound-consultation-paper
#Fintech#CBDC#UnitedKingdom#DFC
·coingeek.com·
Bank of England extends CBDC consultation deadline
Thailand banks team up to PoC retail CBDC
Thailand banks team up to PoC retail CBDC
The Bank of Thailand will reportedly be launching a three-month retail central bank digital currency (CBDC) proof of concept (PoC) in June 2023, in collaboration with three payment service providers (Bank of Ayudhya (Krungsri), Siam Commercial Bank (SCB), and 2C2P (Thailand) Co). For example, Krungsri will be inviting up to 2,000 of its staff and approximately 100 merchants near Krungsri’s headquarters to participate in testing the digital currency. Krungsri has not set a limit in terms of transaction value, focusing instead on testing the stability of the system, particularly during peak periods. This will be part of the central bank's "foundation track" testing of Giesecke+Devrient's Filia CBDC platform. https://www.bot.or.th/en/news-and-media/news/news-20220805.html
#Fintech#CBDC#Thailand#DFC
·thethaiger.com·
Thailand banks team up to PoC retail CBDC
The value added of central bank digital currencies: a view from the euro area
The value added of central bank digital currencies: a view from the euro area
"In the euro area, consumers have multiple payment options and a very efficient retail payments system. The currency enjoys high levels of trust and is not challenged by the emergence of private currencies, such as Bitcoin, or by the risk that cash, a monetary system’s anchor, will disappear. Therefore, creating a CBDC for retail purposes in the euro area offers little obvious value added, at least for the foreseeable future. However, there is a strong case for building a CBDC that banks could use for cross-border wholesale purposes (ie with other currencies). "
#Fintech#CBDC#Eurozone#DFC
·bruegel.org·
The value added of central bank digital currencies: a view from the euro area
The digital dollar’s bipartisan problem
The digital dollar’s bipartisan problem
Opposition to centralized control of money is deep-seated in American political history — dating back to fights over central banking that split the country’s founders — and one that can confound observers. John Kiff, who worked for 25 years at the Bank of Canada, and now publishes a newsletter tracking global CBDC development, described the U.S. political firestorm as “a bunch of bozos trading bullshit.”
#Fintech#CBDC#Kiffmeister#DFC
·politico.com·
The digital dollar’s bipartisan problem
Ripple and Peersyst Partner with Colombia’s Banco de la República in Advancing the Implementation and Utilization of Blockchain Technology | Ripple
Ripple and Peersyst Partner with Colombia’s Banco de la República in Advancing the Implementation and Utilization of Blockchain Technology | Ripple
Ripple is partnering with Colombia's central bank to explore blockchain technology use cases. Banco de la República, in conjunction with The Ministry of Information and Communications Technologies (MinTIC) will pilot use cases that will enhance Colombia’s high-value payment system using the Ripple CBDC Platform, powered by the XRP Ledger (XRPL). The pilot will be run with Spain-based blockchain technology firm Peersyst Technology.
#Fintech#Blockchain#Ripple#CBDC#Colombia#DFC
·ripple.com·
Ripple and Peersyst Partner with Colombia’s Banco de la República in Advancing the Implementation and Utilization of Blockchain Technology | Ripple
CBDC ’human rights’ tracker revealed at Oslo Freedom Forum
CBDC ’human rights’ tracker revealed at Oslo Freedom Forum
The Human Rights Foundation (HRF) has launched a portal dedicated to tracking the development of central bank digital currencies (CBDCs) and how they relate to violations of civil liberties and human rights. It came out of an eight-month fellowship at the HRF announced in January 2023 and awarded to Cato Institute policy analyst Nick Anthony, researcher Janine Romer and podcaster Matthew Mezinskis. It is expected to become fully functional in November 2023, but it has launched a tip line and has published educational material. https://cbdchumanrights.org
#Fintech#CBDC#Privacy#Cato#DFC
·cointelegraph.com·
CBDC ’human rights’ tracker revealed at Oslo Freedom Forum
OECD rolls out new tax standards for digital currencies
OECD rolls out new tax standards for digital currencies
The Organization for Economic Cooperation and Development (OECD) has published a new taxation framework for the digital currency industry, including central bank digital currency (CBDC). The new Crypto-Asset Reporting Framework (CARF) stems from a review of the 2014 Common Reporting Standard (CRS) to plug the loopholes associated with digital currency taxation among member countries. Under the new framework, tax information on digital currency transactions will be automatically exchanged uniformly in line with existing rules. https://www.oecd-ilibrary.org/taxation/international-standards-for-automatic-exchange-of-information-in-tax-matters_896d79d1-en
#Fintech#CryptoAssets#CBDC#Taxation#OECD#DFC
·coingeek.com·
OECD rolls out new tax standards for digital currencies
Project Rosalind develops a prototype API layer for retail CBDC systems
Project Rosalind develops a prototype API layer for retail CBDC systems
The Bank for International Settlements (BIS) published the results of its Project Rosalind joint work with the Bank of England. It explored how a universal and extensible application programming interface (API) layer could connect central bank and private sector infrastructures and facilitate retail central bank digital currency (CBDC) payments. It demonstrated that a well designed API layer could work with different private sector applications and central bank ledger designs and that a set of simple and standardized API functionalities could support a diverse range of use cases.
#Fintech#CBDC#API#BIS#UnitedKingdom#DFC
·bis.org·
Project Rosalind develops a prototype API layer for retail CBDC systems
Leaked European CBDC Bill Outlaws Interest, Large Holdings, Programmability
Leaked European CBDC Bill Outlaws Interest, Large Holdings, Programmability
A leaked draft of the proposed Digital Euro Bill, to be proposed by the European Commission on June 28, 2023 will ban remuneration, surcharges and programmability, and make offline payments available from the outset. The regulation aims to ensure a level of privacy equal to taking cash from an ATM during offline, face-to-face interactions, and neither the European Central Bank (ECB) nor the payment service providers will have access to personal transaction data. The draft law also allows the ECB to set holding limits to limit disintermediation risk. Much of this is rather consistent with a slide deck published by the ECB on June 15.
#Fintech#CBDC#Eurozone#ECB#Offline#Privacy#DFC
·coindesk.com·
Leaked European CBDC Bill Outlaws Interest, Large Holdings, Programmability
Applying the extended attitude formation theory to a digital euro
Applying the extended attitude formation theory to a digital euro
Electronic Markets published a paper that explores how to best create a digital euro that will be used by its intended users through an interview-based analysis of attitudes towards established payment solutions and the transfer of these attitudes. Several participants indicated that they currently see no reason for using a digital euro as an additional payment solution given the current benefits of established payment solutions. However, existing payment solutions are also found to possess perceived limitations and concerns by respondents. The paper concludes that a digital euro would need to be privacy-sensitive, offering wide acceptance for national and international online and offline payments in different contexts.
#Fintech#CBDC#Offline#Privacy#DFC
·link.springer.com·
Applying the extended attitude formation theory to a digital euro
The BoE's CBDC consultation amounts to a national scandal
The BoE's CBDC consultation amounts to a national scandal
The Bank of England (BoE) is quietly pushing for approval of a central bank digital currency (CBDC), while our national broadcaster stands idly by and provides little in the way of coverage. The public consultation document for a retail CBDC was initially set to conclude on June 7 2023. It has now been extended until June 30 2023 due to an omission in the questionnaire. There are concerns over the accessibility of the consultation document. Questions arise about the document’s clarity and the intentions behind this intervention in people’s lives. To gain insights, we sought the expertise of a health researcher specialising in health literacy, mainly working with individuals facing mental health challenges and dementia. Their evaluation of the consultation process conducted by the Bank of England and HM Treasury revealed significant concerns regarding the accessibility of the documentation provided to the general public.
#Fintech#CBDC#UnitedKingdom#DFC
·cityam.com·
The BoE's CBDC consultation amounts to a national scandal
The Rise of Payment and Contracting Platforms
The Rise of Payment and Contracting Platforms
The IMF published a paper proposing a new class of platforms to bring interoperability, efficiency, and safety to cross-border payments, and domestic financial markets. It involves a single ledger for settlement and a safe settlement asset, possibly in the form of central bank digital currency (CBDC), as well as programming standards and information management capabilities leveraging encryption. Governments would keep the right to limit user transactions in foreign currency and impose financial integrity checks. It rejected the use of distributed ledger technology (DLT) because it has “important limitations” in terms of validator costs, security, efficiency and privacy.
#Fintech#CBDC#CrossBorder#Payments#IMF#DFC
·imf.org·
The Rise of Payment and Contracting Platforms
CBDC user needs and adoption
CBDC user needs and adoption
In September 2021 the BIS published a report that outlines the considerations for designing a retail CBDC that will be widely adopted. Aside from being useful to users and accepted by merchants both online and offline, it should cost less to consumers and merchants, offer more privacy than commercial options and multiple accessibility features. Adoption may be more successful if it fulfilled unmet user needs, achieved network effects, and were implemented with the use of existing, accessible technology and infrastructure (eg at the point of sale). The analysis of specific market segments through user personas and stories could provide an important method for investigating user needs and designing informative consultations with prospective end-users.
#Fintech#CBDC#BIS#DFC
·bis.org·
CBDC user needs and adoption
Central Bank of Hungary Launches the first Retail CBDC Pilot Project in the EU
Central Bank of Hungary Launches the first Retail CBDC Pilot Project in the EU
"We are delighted to report about our pivotal role in the launch of the Central Bank of Hungary’s (Magyar Nemzeti Bank, MNB) pilot retail Central Bank Digital Currency (CBDC) project. This project is the first live retail CBDC pilot project in the European Union, placing Hungary and Perfinal at the cutting-edge of digital currency innovation."
#Fintech#CBDC#Europe#DFC
·medium.com·
Central Bank of Hungary Launches the first Retail CBDC Pilot Project in the EU
Brazilian CBDC to enable banks to tokenize balance sheets
Brazilian CBDC to enable banks to tokenize balance sheets
"The Brazilian central bank does not see a need for a retail digital real due to the success of its Pix retail payment system. Deputy Governor Renato Gomes reportedly pointed out that the motivation for Brazil’s CBDC project has been less about improving retail payments but rather creating a wholesale framework for innovation based on DLT."
#Fintech#CBDC#Brazil#DFC
·ledgerinsights.com·
Brazilian CBDC to enable banks to tokenize balance sheets
BIS blueprint for the future monetary and financial system
BIS blueprint for the future monetary and financial system
The Bank for International Settlements (BIS) proposed a new type of financial infrastructure that would combine central bank digital currency (CBDC) with tokenized bank deposits and other tokenized claims, on a programmable platform on a unified ledger. The BIS claims that "eventual benefits would go beyond faster speeds and lower costs, to enable entirely new types of transaction, limited only by the ingenuity of public and private innovators... Examples include new methods for securities settlements that combine all the individual steps into one seamless transaction, tokenized deposits with built-in regulatory checks that simultaneously settle in wholesale CBDC, smart contract-enabled credit that reduces the cost of trade finance for smaller companies, improving global supply chains, enhanced sharing of data on potential borrowers, and using privacy-protecting technology, to expand access to credit for disadvantaged segments of the population."
#Fintech#CBDC#SmartContracts#Tokenization#BIS#DFC
·bis.org·
BIS blueprint for the future monetary and financial system
European Union Delays Legislative Plan for CBDC: Source
European Union Delays Legislative Plan for CBDC: Source
European Union (EU) legislation needed for the European Central Bank (ECB) to issue a digital euro, originally due to be published June 28, has reportedly been put on hold. The move follows the leaking of the draft bill and a statement by finance ministers that appeared to question the motivation for the plan last week. The timeline for the draft bill, intended to be published ahead of a firm ECB decision on whether to issue the retail CBDC, has shifted out several times.
#Fintech#CBDC#Eurozone#DFC
·coindesk.com·
European Union Delays Legislative Plan for CBDC: Source
Boosting Adoption is Key for CBDC Viability in Asia Pacific
Boosting Adoption is Key for CBDC Viability in Asia Pacific
"The viability of CBDC initiatives depends on adoption. CBDCs must meet users’ preferences – eg, the need for privacy and usability – and address commercial banks’ concerns around disintermediation. At the same time, new functionalities – eg, offline access – could enhance CBDCs’ appeal, while interoperability could broaden payment channels, both of which help boost user adoption."
#Fintech#CBDC#Asia-Pacific#BIS#DFC
·asiaglobalonline.hku.hk·
Boosting Adoption is Key for CBDC Viability in Asia Pacific
Interest in CBDCs Picks Up in Latin America and the Caribbean
Interest in CBDCs Picks Up in Latin America and the Caribbean
"Most central banks in LAC are analyzing the potential introduction of CBDCs, with some island nations having already issued their own. According to our survey with government officials in the region, half of the respondents were considering both retail (i.e., designed for the general public) and wholesale (i.e., intended for use by financial institutions) CBDC options."
#Fintech#CBDC#LATAM#Caribbean#DFC
·imf.org·
Interest in CBDCs Picks Up in Latin America and the Caribbean
Central Bank of Nigeria approves CBDC use for remittances
Central Bank of Nigeria approves CBDC use for remittances
The Central Bank of Nigeria (CBN) has introduced the eNaira as a payment option for inbound remittances in an effort to help increase the adoption of the central bank digital currency (CBDC). It's part of the CBN's efforts to liberalize the payout of diaspora remittances and promote the adoption of the eNaira.  International money transfer operators (IMTOs) will need to apply for a one-time “no-objection” and open Merchant Wallets through the central bank to offer customers the possibility of using the eNaira for cross-border remittances.
#Fintech#CBDC#Nigeria#CrossBorder#Remittances#DFC
·ledgerinsights.com·
Central Bank of Nigeria approves CBDC use for remittances