DFC

5286 bookmarks
Custom sorting
Kazakhstan establishes regulatory agency to implement CBDC
Kazakhstan establishes regulatory agency to implement CBDC
The National Bank of Kazakhstan (NBK) has established a separate entity to lead the development and implementation of the country’s central bank digital currency (CBDC), the digital tenge. The National Payment Corporation (NPC) is a reorganization of the Kazakhstan Center for Interbank Settlements. The new body will oversee the national payment system, including interbank clearing services, money transfers and digital identification. The NPC will also be responsible for the development of “digital financial infrastructure,” including the implementation of the digital tenge. https://www.nationalbank.kz/ru/news/informacionnye-soobshcheniya/15923
#Fintech#CBDC#Kazakhstan#DFC
·cointelegraph.com·
Kazakhstan establishes regulatory agency to implement CBDC
Implications of Central Bank Digital Currencies for Monetary Policy Transmission
Implications of Central Bank Digital Currencies for Monetary Policy Transmission
The IMF published a paper that analyzes the impact of retail central bank digital currency (CBDC) on financial conditions and monetary policy transmission. In general, it finds that the impacts are expected to be relatively small in normal times but can be more significant in a low interest rates environment and when there is financial market stress. CBDC could lead to increased financial inclusion which could loosen financial conditions and strengthen monetary policy transmission. On the other hand, increased competition for bank deposit funding, increased wholesale funding, and lower bank profits would tighten financial conditions. Of course, in jurisdictions with currencies that are pegged to another jurisdiction's, there is little to no ability to conduct independent monetary policy, so the impact of retail CBDC issuance is expected to be minimal.
#Fintech#CBDC#IMF#DFC
·imf.org·
Implications of Central Bank Digital Currencies for Monetary Policy Transmission
CBDC design choices and capital flow management measures
CBDC design choices and capital flow management measures
The IMF published a paper that looks at how capital flow measures (CFMs) could be implemented with CBDC, and what benefits, risks and complexities could arise. There are several implications of the analysis. First, CBDC ecosystems should generally be designed such that they can accommodate the introduction of CFMs. Second, thanks to the programmability of the payment infrastructure given by the new digital technologies, certain CFMs could likely be implemented more efficiently and effectively with CBDC compared to the traditional system. Third, implementing CFMs requires central banks to collaborate on practices and standards. Finally, CFMs on CBDC need to operate alongside traditional CFMs.
#Fintech#CBDC#IMF#DFC
·imf.org·
CBDC design choices and capital flow management measures
Kazakhstan digital tenge phase one implementation plan
Kazakhstan digital tenge phase one implementation plan
The National Bank of Kazakhstan announced the next steps in its digital tenge (DT) central bank digital currency (CBDC) project. Initially it has focused on developing a retail CBDC, but has now sprouted several sub-projects and initiatives covering wholesale applications and usage, including securities settlement, stablecoin-related initiatives, and cross-border and social payments. In this regard, two separate environments of the DT platform, industrial and experimental (R&D), are planned for 2023. The industrial environment will implement the DT's main functionality of the DT and its subsequent operation, and the R&D environment will test several use-case scenarios.
#Fintech#CBDC#Kazakhstan#DFC
·nationalbank.kz·
Kazakhstan digital tenge phase one implementation plan
Examining CBDC and Wholesale Payments
Examining CBDC and Wholesale Payments
The U.S. Federal Reserve (Fed) published a paper that explores whether distributed ledger technology (DLT) based wholesale central bank digital currency (CBDC) is essential for new platforms that process wholesale payment transactions. Central bank money currently exists for wholesale transactions in the form of depository institution balances at the Fed used for Fedwire Funds Service. Examining the key technological characteristics and potential arrangements of tokenized distributed platforms and comparing them with existing settlement assets, transfer mechanisms, and balance sheet entries, the paper argues that DLT-based wholesale CBDC is not essential for a tokenized wholesale payment system.
#Fintech#CBDC#PaymentSystems#UnitedStates#wCBDC#DFC
·federalreserve.gov·
Examining CBDC and Wholesale Payments
Third meeting of the ECB New Technologies for wholesale settlement contact group
Third meeting of the ECB New Technologies for wholesale settlement contact group

As part of a new recurring agenda item, members were invited to report on business cases in the payments, securities, and collateral management domains where DLT could make a difference compared to non-DLT settlement systems. https://www.ecb.europa.eu/paym/groups/ntwcg/pdf/ecb.ntwdocs230907_presentations_3rd_ntwcg_meeting.en.pdf https://www.ecb.europa.eu/paym/groups/ntwcg/pdf/ecb.ntwdocs230907_business_cases_3rd_ntwcg_meeting.en.pdf

#Fintech#CBDC#Eurozone#DFC
·ecb.europa.eu·
Third meeting of the ECB New Technologies for wholesale settlement contact group
How Should Central Banks Explore CBDC?
How Should Central Banks Explore CBDC?
The IMF published a paper that proposes a dynamic central bank digital currency (CBDC) decision-making framework under which the central bank can make decisions under uncertainty. A phased and iterative approach could allow central banks to adjust the pace, scale, and scope of their CBDC projects as the domestic and international environment changes. If designed appropriately, CBDCs could allow central banks to modernize payment systems and future-proof central bank money as the pace and shape of digitalization continues to evolve. However, the decision to proceed with CBDC exploration and an eventual launch would need to be jurisdiction specific, depending on the degree of digitalization of the economy, the legal and regulatory frameworks, and the central bank’s internal capacity.
#Fintech#CBDC#IMF#DFC
·imf.org·
How Should Central Banks Explore CBDC?
A Guide to CBDC Product Development
A Guide to CBDC Product Development
The IMF published a paper that develops a CBDC-specific project management methodology that establishes a common terminology and offers guidance to development teams on best practices for addressing the complex requirements and risks associated with CBDC. It is centered on an original five-step approach called the “5P Methodology”: preparation, proof-of-concept, prototypes, pilots, and production. The methodology emphasizes a phased approach to CBDC research and development, with strong focus on research preparation, experimentation and testing, risk management, stakeholder engagement, and cyber resilience.
#Fintech#CBDC#IMF#DFC
·imf.org·
A Guide to CBDC Product Development
Central Bank Digital Currency Fact Sheet
Central Bank Digital Currency Fact Sheet
"CBDCs would imperil Americans’ financial freedom, privacy, and prosperity while devastating community banks. With its power of the purse, which includes the authority to administer and regulate our currency, Congress has the authority to protect the American people by stopping the creation and use of a CBDC. Five bills and one resolution have been introduced thus far in the 118th Congress to prevent the issuance of a CBDC."
#Fintech#CBDC#UnitedStates#DFC
·americafirstpolicy.com·
Central Bank Digital Currency Fact Sheet
BIS and IADB join forces to foster LATAM innovation and financial inclusion
BIS and IADB join forces to foster LATAM innovation and financial inclusion
The Bank for International Settlements (BIS) and the Inter-American Development Bank (IDB) are joining forces to foster innovation and financial inclusion in Latin America and the Caribbean by exploring and developing technology that can help to modernise the region's financial systems. The first collaboration between the two institutions will be on Project FuSSE (Fully Scalable Settlement Engine, pronounced as fyooz). Project FuSSE aims to design and test backend functionality that can be adapted to multiple types of infrastructures, allowing them to process a continuously growing number of transactions. FuSSE aims to test highly scalable systems in three dimensions: the number of transactions, the types of assets and the number of participants. The technology could support payment systems, security settlement systems or even central bank digital currencies.
#Fintech#Plumbing#Settlement#CBDC#BIS#IADB#DFC
·bis.org·
BIS and IADB join forces to foster LATAM innovation and financial inclusion
CBDC Anti-Surveillance State Act Passes Financial Services Committee
CBDC Anti-Surveillance State Act Passes Financial Services Committee
The US House Financial Services Committee considered Majority Whip Emmer’s CBDC Anti-Surveillance State Act. The bill was passed out of the Committee and reported favorably to the House floor during the markup session, an important step toward passing this legislation through Congress. The Act would prevent the Federal Reserve from issuing a central bank digital currency (CBDC) directly or indirectly to individuals or maintaining accounts on behalf of individuals. It would also prohibit the Secretary of the Treasury from directing the Federal Reserve to issue a CBDC and clarifies that a CBDC can only be issued pursuant to congressional authorization. https://docs.house.gov/meetings/BA/BA00/20230920/116343/BILLS-118-HR5403-E000294-Amdt-12.pdf
#Fintech#CBDC#UnitedStates#DFC
·emmer.house.gov·
CBDC Anti-Surveillance State Act Passes Financial Services Committee
CBDC's Role in Promoting Financial Inclusion
CBDC's Role in Promoting Financial Inclusion
The IMF published a paper on a step-by-step framework to help assess central bank digital currency's (CBDC’s) value proposition for improving financial inclusion. The impact of CBDC for improving financial inclusion is currently speculative, where further evidence and experience are needed to fully understand benefits and limitations. That said, it provides an opportunity that could be actively explored alongside other solutions for improving financial inclusion. Moreover, CBDC could be considered as one component of a broader set of measures to improve financial inclusion.
#Fintech#CBDC#FinancialInclusion#IMF#DFC
·imf.org·
CBDC's Role in Promoting Financial Inclusion
Digital yuan app adds prepaid Mastercard Visa top-ups for tourists
Digital yuan app adds prepaid Mastercard Visa top-ups for tourists
Tourists visiting the People’s Republic of China can now pre-charge their digital yuan wallets using Visa and Mastercard payment options. Inbound tourists are reportedly able to make use of overseas mobile numbers to register and open e-CNY wallets and make use of the recharge wallet feature, which supports Visa and Mastercard payments. They must “top up” with at least 100 yuan (around $14) and if they have any funds left in their wallets when they depart China, they can request a refund, after which funds are automatically transferred back to their credit card accounts. This coincides with the start of the Asian Games. https://cryptonews.com/news/foreign-travelers-can-now-use-chinas-digital-yuan-app.htm
#Fintech#CBDC#China#MasterCard#VISA#DFC
·cointelegraph.com·
Digital yuan app adds prepaid Mastercard Visa top-ups for tourists
mBridge CBDC project preparing for new members, launch of minimum viable product
mBridge CBDC project preparing for new members, launch of minimum viable product
According to the Hong Kong Monetary Authority (HKMA) the latest Project mBridge proof-of-concept (PoC) test has demonstrated that the wholesale central bank digital currency (CBDC) platform can speed up cross-border payments at reduced cost and with better transparency. Project mBridge is a collaboration between the Bank for International Settlements (BIS), HKMA, and the central banks of China,  Thailand, and United Arab Emirates, and commercial banks from each of those jurisdictions. More central banks are slated to join the platform, and a minimum viable product, with the aim of paving the way for the gradual commercialization will soon be launched. https://www.bis.org/review/r230925d.htm
#Fintech#CBDC#wCBDC#BIS#HongKong#China#Thailand#UAE#Payments#CrossBorder#DFC
·cointelegraph.com·
mBridge CBDC project preparing for new members, launch of minimum viable product
Towards a legal framework for central bank digital currencies
Towards a legal framework for central bank digital currencies
Agustín Carstens, General Manager of the Bank for International Settlements (BIS), gave a speech focused on the need for central bank digital currency (CBDC) legal frameworks to advance if CBDC is to deliver on its potential. Unfortunately, in many jurisdictions, outdated legal frameworks could hinder their deployment, and work to address these issues needs to begin in earnest. A CBDC also needs to function within a framework of clearly defined rights and obligations. At least three core elements must be preserved: the privacy of CBDC users and the protection of their data; the integrity of the financial system; and the ability of users to choose between CBDC and other forms of money. These are fundamental issues and the legal framework for CBDC must get them right.
#Fintech#CBDC#BIS#DFC
·bis.org·
Towards a legal framework for central bank digital currencies
Project Mariana: Cross-border exchange of wholesale CBDCs using automated market-makers
Project Mariana: Cross-border exchange of wholesale CBDCs using automated market-makers
The Bank for International Settlements (BIS) published the results of its Project Mariana proof of concept that demonstrated technical feasibility of automated market-makers (AMMs) for cross-border trading and settlement of wholesale central bank digital currencies (wCBDCs). It borrows ideas and concepts from decentralized finance (DeFi) and leverages a public blockchain to design and test a transnational transnational FX interbank market using wCBDCs. Project Mariana is a collaboration between the BIS Innovation Hub, the Bank of France, the Monetary Authority of Singapore and the Swiss National Bank.
#Fintech#CBDC#wCBDC#CrossBorder#Payments#AMMs#BIS#DFC
·bis.org·
Project Mariana: Cross-border exchange of wholesale CBDCs using automated market-makers
The National Bank of Georgia is moving ahead with its CBDC project
The National Bank of Georgia is moving ahead with its CBDC project
The National Bank of Georgia (NBG) will launch a "limited access live pilot environment" (sounds like a proof-of-concept phase to me) to test central bank digital currency (CBDC) system technology capabilities and potential applications. At this stage, the NBG remains technologically agnostic for the Digital GEL project, and has announced a list of nine platform vendors to join the "on field" exploration. Upon selection stage completion, NBG will identify one of the vendors to move to the pilot stage to test the CBDC platform in a limited-time run live environment and evaluate the practical use cases. (There were some surprises to me in the list of vendors!)
#Fintech#CBDC#Georgia#DFC
·nbg.gov.ge·
The National Bank of Georgia is moving ahead with its CBDC project
How a CBDC Created Chaos and Poverty in Nigeria
How a CBDC Created Chaos and Poverty in Nigeria
"Since Emefiele’s arrest, the specter of a CBDC monopoly has disappeared. Those who find electronic money more convenient use it. When that convenience is lost, they will switch to cash or its digital alternative. People now know that there wouldn’t have been such chaos if the currency digitalization was voluntary and not accompanied by cash delegalization. Will Nigeria’s case help other global central bankers and citizens arrive at a similar conclusion? Probably not, so we await the next economic disaster.
#Fintech#CBDC#Mises#Dystopia#Conspiracy#DFC
·mises.org·
How a CBDC Created Chaos and Poverty in Nigeria
Ripple announces the CBDC Innovate Phase I winners
Ripple announces the CBDC Innovate Phase I winners
Ripple announced the 15 winners of Phase I of its CBDC Innovate Challenge who will move forward to Phase II, where they will begin building, refining, and developing their applications. The goal of CBDC Innovate 2023 is to build or update a fintech or payments solution utilizing Ripple’s CBDC solutions. In Phase I applicants ideated applications on the public XRP Ledger. In Phase II the 15 finalists, including WhisperCash, will build on Ripple’s Private CBDC Platform.
#Fintech#CBDC#Ripple#Sandboxes#HackaThon#WhisperCash#DFC
·ripplecbdc.devpost.com·
Ripple announces the CBDC Innovate Phase I winners
Pilot project on digital ruble to be expanded in 2024
Pilot project on digital ruble to be expanded in 2024
The digital ruble pilot is going as planned and the Russian central bank is preparing to expand it in 2024 adding new participants and widening its functions. The pilot, which started in August, is testing operations, the opening of wallets, transfers between citizens, and QR codes payments. 13 banks are actively participating in the pilot and preparations are being made to expand the project next year by adding new participants and new clients, including transfers between legal entities.
#Fintech#CBDC#Russia#DFC
·tass.com·
Pilot project on digital ruble to be expanded in 2024
Bank of Ghana announces the launch of an eCedi hackathon
Bank of Ghana announces the launch of an eCedi hackathon
Bank of Ghana (BoG) in collaboration with EMTECH has launched an eCedi hackathon, to provide opportunities for Fintechs, developers and innovators to design innovative solutions that explore various use cases of a central bank digital currency (CBDC). The event is set to run for 12 weeks, during which innovators will brainstorm to come up with solutions to address financial inclusion challenges in Ghana. The proposed innovations are expected to leverage eCedi tokens and APIs to prototype solutions or develop tools that address various use cases.
#Fintech#CBDC#Ghana#DFC
·bog.gov.gh·
Bank of Ghana announces the launch of an eCedi hackathon
Bank of Korea to start CBDC infrastructure pilot
Bank of Korea to start CBDC infrastructure pilot
The Bank of Korea (BOK) is launching a CBDC pilot that will include private banks and public institutions, while the Bank for International Settlements (BIS) providing technical support. It will assess the viability of a future monetary system grounded on wholesale CBDCs, with key motivations to include testing wholesale CBDC as a settlement asset for commercial bank tokenized deposits, and exploring the BIS Unified Ledger concept. Banks will issue payment instruments in the form of tokenized deposits - that will be accessible to the general public - within the “CBDC network” established by the BOK, using distributed ledger technology (DLT), and managed by the BOK, Financial Services Commission, and the Financial Supervisory Service. https://www.bok.or.kr/eng/bbs/E0000634/view.do?menuNo=400069&nttId=10079839&pageIndex=1&
#Fintech#CBDC#Korea#DFC
·cointelegraph.com·
Bank of Korea to start CBDC infrastructure pilot
Central banks will face unfamiliar challenges to achieve CBDC inclusivity, study says
Central banks will face unfamiliar challenges to achieve CBDC inclusivity, study says
The Bank of Canada published a paper that explores quantitative and qualitative information about Canadians who face barriers to making digital payments, and implications for a potential central bank digital currency (CBDC). It identified three types of inclusion necessary for a universally accessible payment method: financial inclusion, digital inclusion and practical accessibility. The challenge is in the delivery of services rather than product design, and private financial institutions may not be incentivized to address the needs of those who are underserved. However, overcoming those challenges will require central banks to face problems that would otherwise be considered far from their scope of interest. https://www.bankofcanada.ca/2023/10/staff-discussion-paper-2023-22/ https://www.linkedin.com/pulse/welcome-weeks-edition-cbdc-chronicles-conrad-kraft-yafoe/
#Fintech#CBDC#FinancialInclusion#Canada#DFC
·cointelegraph.com·
Central banks will face unfamiliar challenges to achieve CBDC inclusivity, study says
BOK, Samsung join hands for offline payment using CBDC
BOK, Samsung join hands for offline payment using CBDC
[Old news - May 2023] The Bank of Korea (BOK) and Samsung will reportedly work together to develop central bank digital currency (CBDC) technology that enables transactions to be made without internet access. In the BOK's proof-of-concept CBDC testing last year, Samsung worked out an offline technology which allows transactions and payments between mobile devices through near field communication (NFC) without online connection, using an embedded secure element security chip. They will continue this work on Samsung's Galaxy smartphones and watches.
#Fintech#CBDC#Offline#Korea#DFC
·koreaherald.com·
BOK, Samsung join hands for offline payment using CBDC
Central bank digital currencies and financial stability in a modern monetary system
Central bank digital currencies and financial stability in a modern monetary system
"The aim of this study is to disentangle the effects of introducing an interest-bearing central bank digital currency (CBDC) for financial stability using a Diamond and Dybvig (1983) model in which (i) both CBDC and private bank deposits can be used in exchange and (ii) liquidity is created endogenously. Agents have direct access to a CBDC, which is a claim on the central bank. They use both sight deposits and CBDC to buy goods and commercial banks borrow reserves to cover liquidity needs. The introduction of an interest-bearing CBDC has direct implications for the sight deposit rate and the loan rate of banks. Besides, if the central bank aims to have a positive net worth and the absence of bank runs, a high demand for a CBDC is a necessary condition to achieve both objectives. If this is not the case, financial stability will be endangered." https://ddd.uab.cat/record/258890/
#Fintech#CBDC#FinancialStability#DFC
·sciencedirect.com·
Central bank digital currencies and financial stability in a modern monetary system
Central Bank of Nigeria defends eNaira CBDC
Central Bank of Nigeria defends eNaira CBDC
The Central Bank of Nigeria (CBN) reasserted its confidence in its central bank digital currency (CBDC), in reaction to claims that an eNaira CBDC would pose a threat to Nigeria’s financial stability. These false claims were based on misinterpretations of papers in a 300-page book published by the CBN in September 2023 that detailed the financial implications of adopting a CBDC. https://www.cbn.gov.ng/Out/2023/CCD/CBN%20Press%20Release%20%20eNaira%20(091023).pdf
#Fintech#CBDC#Nigeria#DFC
·ledgerinsights.com·
Central Bank of Nigeria defends eNaira CBDC
Zimbabwe turns gold-backed digital token into payment method
Zimbabwe turns gold-backed digital token into payment method
The Zimbabwe Gold (ZiG) digital asset backed by a physical gold held in the Reserve Bank of Zimbabwe's (RBZ's) reserves officially launched as a payment method. The RBZ first started issuing Mosi-oa-Tunya physical gold-backed tokens in 2022, and the ZiG was introduced in April 2023. The digital tokens can be stored in either e-gold wallets or e-gold cards and are tradeable for peer-to-peer and business transactions. https://twitter.com/ReserveBankZIM/status/1709929505144652153
#Fintech#CBDC#Zimbabwe#DFC
·cointelegraph.com·
Zimbabwe turns gold-backed digital token into payment method
ECB launches technical talks on secure exchange of payer-payee digital euro data
ECB launches technical talks on secure exchange of payer-payee digital euro data
The European Central Bank (ECB) is inviting payments experts to participate in technical talks on options for the secure exchange of payment-related data between payer and payee for digital euro transactions. The talks will center around the latest retail payment market innovations that can ensure the secure exchange of end-user data between payment initiation and payment acceptance devices, and the key considerations for a secure exchange of front-end data for the envisaged digital euro use cases, form factors and core and optional services.
#Fintech#CBDC#Eurozone#ECB#DFC
·ecb.europa.eu·
ECB launches technical talks on secure exchange of payer-payee digital euro data
Mastercard successfully wraps up RBA CBDC PoC
Mastercard successfully wraps up RBA CBDC PoC
Mastercard has completed a central bank digital currency (CBDC) proof-of-concept (PoC) with the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre. (The MasterCard press release calls it a "pilot" but it's unclear whether live users were involved, a requirement for the "pilot" label.) It tested how authorized parties, who have gone through know-your-customer (KYC) protocols, could hold, use and redeem CBDCs. In addition, the project tested how a holder could purchase an Ethereum-based non-fungible token (NFT) by locking the pilot CBDC and minting an equivalent amount of Ethereum-based wrapped coins. https://www.mastercard.com/news/ap/en/newsroom/press-releases/en/2023/mastercard-demonstrates-interoperable-cbdc-for-trusted-web3-commerce-in-australia-and-beyond/ https://www.linkedin.com/pulse/welcome-weeks-edition-cbdc-chronicles-conrad-kraft-yafoe/
#Fintech#CBDC#Australia#MasterCard#DFC
·theblock.co·
Mastercard successfully wraps up RBA CBDC PoC