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Brazil's CBDC falls behind schedule as central bank suspends innovation lab
Brazil's CBDC falls behind schedule as central bank suspends innovation lab
Banco Central do Brasil has reportedly delayed its digital real DREX pilot by three months, and suspended its LIFT Lab innovation project indefinitely. The delay is being attributed to a slow start in onboarding pilot participants and because the bank isn’t yet satisfied with the privacy preserving technology it plans to use.
#Fintech#CBDC#Brazil#wCBDC#DFC
·ledgerinsights.com·
Brazil's CBDC falls behind schedule as central bank suspends innovation lab
If You Can’t Beat the Lunatics, Join ‘Em
If You Can’t Beat the Lunatics, Join ‘Em
"Realizing that genuine informed debate with radical conspiracy-theorizing right-wingers is impossible, the South Dakota Bankers Association has made a sensible tactical move that costs them nothing to get the Uniform Commercial Code updates they want. Recall that last Session, Governor Kristi Noem vetoed House Bill 1193 under the utterly misinformative pretense that updating the Uniform Commercial Code to put cryptocurrency on a more solid footing would facilitate the creation of a central bank digital currency (CBDC). The Federal Reserve is nowhere near issuing a CBDC, and even if it were, the passage of HB 1193 would not have sped that issuance, and the veto of HB 1193 did nothing to slow that issuance."
#Fintech#CBDC#UnitedStates#UCC#DFC
·dakotafreepress.com·
If You Can’t Beat the Lunatics, Join ‘Em
Implementation of the Digital Euro
Implementation of the Digital Euro
IBM published a paper that set out what it believes it will take for a successful digital euro. For initial acceptance it should be simple and easy to use, and operate with other well established payment methods, besides commercial models, costs and innovations. For the long-term success, foundations for innovations need to be built, particularly for strong privacy, uniform digital payments including support for virtual worlds and tokenized economies. Key elements for the acceptance will be the active support by intermediaries, and digital euro components that integrate well with the incumbents’ existing infrastructures. Also, the digital euro should allow strong privacy for low-value proximity payments, independent of technical connectivity. Finally, IBM believes the platform should be built on distributed ledger technologies (DLTs) but centrally governed by the central bank.
#Fintech#CBDC#DFC
·admin03.prod.blogs.cis.ibm.net·
Implementation of the Digital Euro
Russia is ramping up its CBDC. Will Putin’s ‘robot ruble’ work?
Russia is ramping up its CBDC. Will Putin’s ‘robot ruble’ work?
"The ruble, in digital or paper form, will not replace the dollar, the euro, the pound, or the yen in cross-border transactions. In fact, as Russia seeks to de-dollarize its economy, a likely avenue will be using the yuan or digital yuan. Last October, Russia became the fourth largest yuan offshore clearing center in the world, and simultaneously, China was a part of the first actual cross-border digital currency transaction. Russia has also taken advantage of China’s broader currency settlement system for transactions with other countries, creating intractable dependencies in the long term. For the time being, robot rubles will accomplish very little for Russia’s burgeoning economic woes."
#Fintech#CBDC#Russia#DFC
·atlanticcouncil.org·
Russia is ramping up its CBDC. Will Putin’s ‘robot ruble’ work?
CBDC: Inclusion of the 'Unbanked' or Illusion?
CBDC: Inclusion of the 'Unbanked' or Illusion?
The Durbin Amendment (Section 1075 of the 2010 Dodd‐​Frank Act) established price controls that made it more difficult for banks to offer low‐​cost accounts. Even from the perspective of merchants, one study found that the Durbin Amendment “had limited and unequal impact on reducing merchants’ costs… and it has produced unintended consequences for some merchants in terms of raising costs." https://scholarship.law.upenn.edu/faculty_scholarship/2046/
#Fintech#CBDC#Payments#Regulation#UnitedStates#Cato#FinancialInclusion#DFC
·cato.org·
CBDC: Inclusion of the 'Unbanked' or Illusion?
American's Trust in Government: 1958-2022
American's Trust in Government: 1958-2022
"Public trust in government remains low, as it has for much of the 21st century. Only two-in-ten Americans say they trust the government in Washington to do what is right “just about always” (2%) or “most of the time” (19%). Trust in the government has declined somewhat since last year, when 24% said they could trust the government at least most of the time."
#Fintech#CBDC#UnitedStates#DFC
·pewresearch.org·
American's Trust in Government: 1958-2022
RBI to add support for NFC to India's UPI Lite digital wallet service
RBI to add support for NFC to India's UPI Lite digital wallet service
The Reserve Bank of India (RBI) will add support for near-field communications (NFC) payments to the country’s Unified Payments Interface (UPI) Lite digital wallet, enabling users to conduct transactions on their smartphone when there is no internet or mobile connection. The RBI is adding the option to the stored value wallet, launched in September 2022, to “optimize processing resources for banks, thereby reducing transaction failures". https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=56174
#Fintech#CBDC#India#Offline#NFC#DFC
·nfcw.com·
RBI to add support for NFC to India's UPI Lite digital wallet service
Enabling offline payment scalability
Enabling offline payment scalability
Lipis Advisors in partnership with Crunchfish released the fifth white paper in the "enabling offline payments in an online world” series. The new paper focuses on scalability, pointing out that the choice of hardware or software-based offline trusted environment can greatly impact the scalability features of offline payment systems. Software-based trusted environments are generally more scalable, because they don't require the distribution of physical components and may be updated more easily. However, in low-income countries where most potential users can't afford devices that support software-based trusted environments (i.e., smartphones), some combination of hardware- and software-based trusted environments should be implemented to ensure true scalability.
#Fintech#CBDC#Payments#Offline#Crunchfish#DFC
·crunchfish.com·
Enabling offline payment scalability
How does post-quantum cryptography affect Central Bank Digital Currency?
How does post-quantum cryptography affect Central Bank Digital Currency?
Lars Hupel (G+D) and Makan Rafiee (secunet) circulated a paper that provides insight into the future of cryptography as it applies to CBDC. They first give an overview of classical cryptographic algorithms and what they are used for in the CBDC context. Then, they introduce the threats that quantum computing poses, as well as post-quantum algorithms that address those threats. Equipped with this, they can then examine the cryptography in use for CBDC implementations and match them to appropriate algorithms. Finally, they propose an opinionated framework for rolling updates, i.e., to put the earlier insights into practice.
#Fintech#CBDC#CyberSecurity#QuantumComputing#G+D#DFC
·arxiv.org·
How does post-quantum cryptography affect Central Bank Digital Currency?
Recent CBDC Developments in Asia and Their Implications
Recent CBDC Developments in Asia and Their Implications
The Asian Development Bank (ADB) published a paper that analyzes the evolution of central bank digital currencies (CBDCs) in Asia and the Pacific, assesses their potential risks and technical challenges, and shows their potential to improve cross-border payments and financial inclusion. It details various models and explores how China, Singapore, and Thailand are taking the lead. Outlining global developments and emerging trends, it shows why a robust digital infrastructure, strong public–private collaboration, and Fintech literacy are central to ensuring CBDCs help drive the transition to a digital economy.
#Fintech#CBDC#Asia#China#Singapore#Thailand#ADB#DFC
·adb.org·
Recent CBDC Developments in Asia and Their Implications
China insists digital yuan be usable everywhere
China insists digital yuan be usable everywhere
Mu Changchun, the head of the People's Bank of China (PBOC) Digital Currency Research Institute, said that the digital yuan must be available for all retail scenarios, with standard QR codes being one of the first steps. He also wants to see wholesale payment systems becoming interoperable with the central bank digital currency (CBDC), and he envisions the digital yuan and smart contracts being used for securities transactions, enabling settlement on a delivery versus payment (DvP) or payment versus payment (PvP) basis. https://finance.eastmoney.com/a/202309032835731424.html
#Fintech#CBDC#China#QR#wCBDC#DFC
·ledgerinsights.com·
China insists digital yuan be usable everywhere
Customers of Indian banks can scan UPI QR code and pay via digital rupee
Customers of Indian banks can scan UPI QR code and pay via digital rupee
Growing numbers of Indian commercial banks have gone live with Unified Payments Interface (UPI) interoperability on the Reserve Bank of India (RBI) digital rupee central bank digital currency (CBDC) rupee app. With this move, the bank's customers will be able to scan any UPI QR code through the banks' digital rupee apps and pay for transactions. The UPI is the national payment portal operated by the National Payments Corporation of India (NPCI), a division of the RBI. The NPCI provides the infrastructure for both the UPI and the digital rupee.
#Fintech#CBDC#India#QR#Interoperability#DFC
·cnbctv18.com·
Customers of Indian banks can scan UPI QR code and pay via digital rupee
BIS and Reserve Bank of India announce winners of G20 TechSprint 2023
BIS and Reserve Bank of India announce winners of G20 TechSprint 2023

The Bank for International Settlements (BIS) and the Reserve Bank of India (RBI) announced the winners of the G20 TechSprint 2023 challenge. From the short list of 21 teams three winners for three problem statements were chosen: -Team Secretarium Ltd. from the UK won the category fon fighting money laundering, combating financing of terrorism, tax and sanctions evasion, with their solution on transaction monitoring and protecting anonymity and privacy using secure privacy technology. -Team Millicent Labs from the UK won the category for problem of improving liquidity in cross-border payments between emerging and developing countries' currencies, with their hybrid decentralised exchange for CBDCs, which features automated market makers and traditional order books, to optimise liquidity and reduce volatility risk. -Team Knox Networks from the US won the category for problem of developing multilateral cross-border CBDC platforms, with their multilateral CBDC solution based on File-Based Digital Assets (FBDAs).

#Fintech#BIS#TechSprint#CBDC#India#FinancialIntegrity#CrossBorder#DFC
·bis.org·
BIS and Reserve Bank of India announce winners of G20 TechSprint 2023
UK RLN to experiment with digital pound as tokenized deposits
UK RLN to experiment with digital pound as tokenized deposits
The UK Regulated Liability Network (RLN) will experiment with a retail digital pound backed by tokenized bank deposits. Earlier in 2023, the RLN performed similar trials in the US involving several banks, Mastercard and the NY Fed. The RLN has separate partitions for the central bank and each bank, with interbank payments being settled on the central bank partition. The experiments will explore how the tokenized deposits could sit alongside a retail CBDC, how RLN could accommodate both forms of money on a single platform, how the functional equivalence of all retail digital money could be ensured, and if the RLN can provide a more effective platform for innovation. https://www.ukfinance.org.uk/policy-and-guidance/reports-and-publications/regulated-liability-network-uk-discovery-phase
#Fintech#CBDC#RegulatedLiabilityNetwork#Tokenization#DFC
·ledgerinsights.com·
UK RLN to experiment with digital pound as tokenized deposits
Macau establishes digital currency as legal tender
Macau establishes digital currency as legal tender
A new law regulating Macau’s currency issuance has come into effect, giving digital currency the same legal status as traditional money in the Chinese special administrative region. The new legal framework, proposed by the Macau government, became effective on September 1, 2013 after being approved by the SAR’s legislative assembly in June. However, there is no timeline for the launch of a digital pataca central bank digital currency (CBDC).
#Fintech#CBDC#Macau#DFC
·centralbanking.com·
Macau establishes digital currency as legal tender
Bank of Canada explores impact of quantum computing on CBDCs
Bank of Canada explores impact of quantum computing on CBDCs
The Bank of Canada has called in evolutionQ for a research project involving quantum-safe cybersecurity technologies for greenfield digital currencies. The Bank of Canada is exploring technologies and technical ecosystems that may inform decisions relating to the development of a potential digital loonie. The evolutionQ research will explore the impact of integrating quantum-safe encryption methods and crypto-agility as design goals for digital currencies. The code developed during the research will be released as open source to give developers and researchers the opportunity to explore the new cryptographic methods.
#Fintech#CBDC#Canada#QuantumComputing#CyberSecurity#DFC
·newswire.ca·
Bank of Canada explores impact of quantum computing on CBDCs
IMF reports on Saudi Arabia's CBDC exploration
IMF reports on Saudi Arabia's CBDC exploration
The IMF in its Saudi Arabia 2023 Article IV staff report reported on the Saudi Central Bank (SAMA) central bank digital currency (CBDC) explorations. Through Project Aber, SAMA was one of the first central banks to experiment with domestic and cross-border wholesale CBDC. Leveraging the lessons of the experiment, SAMA is continuing to explore wholesale CBDC use cases. SAMA is undertaking a three-phased approach (evaluation, testing, implementation), allowing for ongoing assessment at each stage, against which the future roadmap will continue to evolve.
#Fintech#CBDC#SaudiArabia#wCBDC#DFC
·imf.org·
IMF reports on Saudi Arabia's CBDC exploration
Bangko Sentral ng Pilipinas selects technology for CBDC project
Bangko Sentral ng Pilipinas selects technology for CBDC project
[September 7, 2023] The Bangko Sentral ng Pilipinas (BSP) has selected Hyperledger Fabric as the distributed ledger technology (DLT) for its Project Agila (formerly known as Project CBDCPh) wholesale central bank digital currency (CBDC) sandbox tests. Project Agila aims to orient the BSP and participating financial institutions on CBDC technology solutions that have the potential to enhance the country's large-value payment system. By the end of Project Agila, the participants are expected to have a clearer understanding of CBDC technology and assess the capability of wholesale CBDCs to foster advancements in the large-value payment system. [February 12, 2024 update: The BSP dropped the blockchain solution and will use the technology that underpins the Philippine Payment and Settlement System (PhilPaSSplus), the country's real time gross settlement payment system. https://www.ledgerinsights.com/philippines-wholesale-cbdc-two-years-no-blockchain/]
#Fintech#CBDC#wCBDC#Philippines#DFC
·bsp.gov.ph·
Bangko Sentral ng Pilipinas selects technology for CBDC project
Hong Kong expands trial of China's digital yuan to more banks
Hong Kong expands trial of China's digital yuan to more banks
Hong Kong is reportedly actively testing China’s digital yuan and has entered the second phase of technical testing to incorporate a predominant local payment system. The Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBOC) have completed the initial technical tests for cross-border payments using the digital yuan in Hong Kong. Currently, they are conducting the second phase of the technical trial, involving more Hong Kong banks and testing the digital yuan wallet’s top-up function through the Faster Payment System.
#Fintech#CBDC#China#HongKong#CrossBorder#Payments#DFC
·theblock.co·
Hong Kong expands trial of China's digital yuan to more banks
Idemia partners with Airtel Payments Bank and HMD Global
Idemia partners with Airtel Payments Bank and HMD Global
IDEMIA has partnered with Airtel Payments Bank and HMD Global to expand the reach of offline CBDC payments in India. The firms will focus on working together in order to launch an offline payment system in the next couple of months. The new product is set to facilitate the use of the digital INR on featured phones and devices, with the objective of driving financial inclusion. IDEMIA will provide its technology and services in order to provide an offline layer to ensure that the transactions of customers are instant and secure without the need for any kind of online validation.
#Fintech#CBDC#Payments#Offline#IDEMIA#India#DFC
·thepaypers.com·
Idemia partners with Airtel Payments Bank and HMD Global
India's CBDC Has 1.5M Users, 300K Merchants, Says RBI Chief
India's CBDC Has 1.5M Users, 300K Merchants, Says RBI Chief
The Reserve Bank of India (RBI) reportedly provided an update on its central bank digital currency (CBDC) pilot that started in the wholesale segment in November 2022, followed by a pilot in the retail segment in December. The trial has been rolled out to approximately 1.5 million users, and is is being operated through 13 banks in 26 cities, and over 300,000 merchants as of end-August 2023. The RBI has enabled full interoperability with Unified Payments Interface (UPI) QR codes. Moreover, the RBI is likely to launch a CBDC pilot for transactions for interbank borrowing or call money market by October 2023.
#Fintech#CBDC#India#rCBDC#wCBDC#DFC
·news.bitcoin.com·
India's CBDC Has 1.5M Users, 300K Merchants, Says RBI Chief
EU's ECB Faces Opposition to Digital Euro Plans That Threaten to Slow CBDC Project
EU's ECB Faces Opposition to Digital Euro Plans That Threaten to Slow CBDC Project
"Proponents of a digital euro are facing political opposition to their plans for a central bank digital currency (CBDC) – and technocratic central bankers aren’t sure how to respond... That opposition can start with legitimate concerns over privacy and the limits of government power – but can also venture into conspiracy theories that paint CBDCs as part of a much wider, orchestrated program of state control. 'We can assure people you are not traced and we can prove it with audits and whatever, but if outside of the system people start talking about this and convincing each other on social media … then that is a big blow.”'"
#Fintech#CBDC#Dystopia#DFC
·coindesk.com·
EU's ECB Faces Opposition to Digital Euro Plans That Threaten to Slow CBDC Project
Hungary for fintech: an interview with the Central Bank of Hungary’s Anikó Szombati
Hungary for fintech: an interview with the Central Bank of Hungary’s Anikó Szombati
Global Government Fintech published an interview with Magyar Nemzeti Bank's (MNB's)  Anikó Szombati on the central bank's financial innovation agenda. She made particular mention of the MNB's private blockchain-based non-fungible token (NFT) issuance and the associated mobile application platform.  The first series of NFTs were based on six collector versions of a five forint coin. Users obtain the NFTs by solving quizzes. By collecting NFTs containing all six letters of the word ‘forint’, users were able to participate in a prize game in which they could win special physical coin sets. The MNB is now working with SODA (Sovereign Official Digital Association) on a bridging operation between the current private blockchain and a public blockchain.
#Fintech#CBDC#NFT#Hungary#DFC
·globalgovernmentfintech.com·
Hungary for fintech: an interview with the Central Bank of Hungary’s Anikó Szombati
Project Sela demonstrates that retail CBDC can support access, cyber security and competition, while retaining cash features
Project Sela demonstrates that retail CBDC can support access, cyber security and competition, while retaining cash features
Project Sela, a joint experiment conducted by the Bank for International Settlements (BIS) and the Israeli and Hong Kong central banks, showed that a retail central bank digital currency (CBDC) ecosystem can combine accessibility, competition and preventative cyber security, while retaining key advantages of physical cash. In Sela, the retail CBDC ledger is operated by the central bank without compromising end user privacy as personal identifiers are obfuscated. Retail payments are therefore settled directly on the central bank's balance sheet in a privacy-preserving manner, meaning instant finality for transactions.
#Fintech#CBDC#Privacy#BIS#HongKong#Israel#rCBDC#DFC
·bis.org·
Project Sela demonstrates that retail CBDC can support access, cyber security and competition, while retaining cash features
Swift begins beta tests of CBDC connector
Swift begins beta tests of CBDC connector
SWIFT is working with three central banks, including the Hong Kong Monetary Authority (HKMA) and the National Bank of Kazakhstan, and 30 financial institutions on beta tests of an experimental method for interlinking central bank digital currencies (CBDCs) with existing fiat infrastructures. In addition, SWIFT has started a second phase of sandbox testing, with commercial banks, central banks and financial market infrastructures exploring uses such as trigger-based payments for digital trade platforms, foreign exchange models, delivery vs. payment and liquidity saving mechanisms. three central banks and monetary authorities. https://www.swift.com/news-events/press-releases/swift-advances-cbdc-innovation-interlinking-solution-begins-beta-testing
#Fintech#CBDC#SWIFT#Interoperability#Kazakhstan#HongKong#DFC#wCBDC
·finextra.com·
Swift begins beta tests of CBDC connector
ENaira CBDC Benefits, Risks, and Lessons
ENaira CBDC Benefits, Risks, and Lessons
This paper identifies the benefits and risks of issuing CBDC drawing on Nigeria's eNaira experience. It notes that issuing a CBDC in Nigeria offers many benefits, including expanding financial inclusion, cash management cost-reduction, improving tax collection, boosting cross-border trade and remittances, and engendering economic growth. It also discusses some potential risks that policymakers must consider while highlighting some insightful lessons from the issuance and adoption of the eNaira in Nigeria.
#Fintech#CBDC#Nigeria#DFC
·papers.ssrn.com·
ENaira CBDC Benefits, Risks, and Lessons
CBDC and the Cashless Economy: The African Experience
CBDC and the Cashless Economy: The African Experience
Nigeria's CBDC experience shows that the widespread adoption of digital currencies and the transition to 100% cashless economies, will be difficult. The benefits of adopting CBDC may be outweighed by negative aspects, especially the lack of trust and acceptance by citizens. Politicians focus on highlighting the advantages of digital currencies. However, the example of Nigeria proves that people are well aware of the dangers of depriving them of cash, and thus freedom and privacy. An attempt to impose top-down control over the monetary sphere could trigger unrest and violent social protests with political and economic, and even systemic, consequences that are difficult to predict.
#Fintech#CBDC#Nigeria#Africa#Privacy#DFC
·ersj.eu·
CBDC and the Cashless Economy: The African Experience
Minutes of the Bank of England's July 2023 CBDC Technology Forum Meeting
Minutes of the Bank of England's July 2023 CBDC Technology Forum Meeting
At the July 26, 2023 meeting of the Bank of England's (BoE's) CBDC Technology Forum Tom Mutton (Chair) explained that they were now at the start of the design phase of the digital pound roadmap, during which they would conduct experiments and proofs of concept, and develop a detailed blueprint. He noted that the design phase was expected to last for 2-3 years, after which a decision would be made on whether or not to proceed to the build phase, during which the Technology Forum is expected to provide ideas and expert analysis that could inform and challenge the Bank of England’s experiments and the eventual digital pound blueprint.
#Fintech#CBDC#UnitedKingdom#DFC
·bankofengland.co.uk·
Minutes of the Bank of England's July 2023 CBDC Technology Forum Meeting
RBI plans new features to boost e-rupee transactions
RBI plans new features to boost e-rupee transactions
The Reserve Bank of India (RBI) is reportedly planning to introduce new features to popularize the e-rupee retail central bank digital currency (CBDC), with transaction volumes running  way short of the RBI's end-2023 target (18,000/day versus a one million/day. The features include allowing digital rupee transactions when a customer is offline and linking the e-rupee to India's Unified Payments Interface (UPI). In fact, many banks have already gone live with QR code-based e-rupee UPI interoperability, so at least this doesn't seem to be new news. Also, HDFC Bank is reportedly working with IDEMIA to build an offline e-rupee platform for feature phones.
#Fintech#CBDC#India#Offline#QR#Interoperability#UPI#DFC
·reuters.com·
RBI plans new features to boost e-rupee transactions
HSBC and HKUST to conduct one week hypothetical e-HKD trial
HSBC and HKUST to conduct one week hypothetical e-HKD trial
HSBC and the School of Business and Management of The Hong Kong University of Science and Technology (HKUST Business School) will run a one-week hypothetical e-HKD proof of concept. The bank will use distributed ledger technology (DLT) to simulate programmable money and instant settlement for retail payments. Around 200 HKUST Business School staff will receive hypothetical eHKD to spend at five campus merchants, such as cafes. They can also receive rewards as a digital token. I'm not certain about this, but it may be running as part of the Hong Kong Monetary Authority (HKMA) e-HKD Pilot Programme announced in May 2023.
#Fintech#CBDC#HongKong#DFC
·about.hsbc.com.hk·
HSBC and HKUST to conduct one week hypothetical e-HKD trial