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Mobile-First Blockchain Celo Launches Stablecoin Tied to Brazilian Real
Mobile-First Blockchain Celo Launches Stablecoin Tied to Brazilian Real
"Phone-focused blockchain Celo launched cREAL, a stablecoin pegged to Brazil's local currency, the real. As of Thursday, cREAL will be available on Brazil-based crypto exchanges Ripio, FlowBTC and NovaDAX. Crypto wallets Bitfy and Coins will also support the stablecoin. NovaDAX users will be able to spend cREAL with the prepaid crypto card issued by the crypto exchange. Bitfy customers will be able to use the cREAL throughout the Cielo network, Brazil's largest credit and debit card operator, the company said in a press release Thursday."
#Fintech#CryptoAssets#Stablecoins#SouthAmerica#DFC
·coindesk.com·
Mobile-First Blockchain Celo Launches Stablecoin Tied to Brazilian Real
Making Money by Gary B. Gorton, Chase P. Ross, Sharon Y. Ross
Making Money by Gary B. Gorton, Chase P. Ross, Sharon Y. Ross
"It is difficult for private agents to produce money that circulates at par with no questions asked. We study two cases of privately-produced money: pre-Civil War U.S. private banknotes and modern stablecoins. Private monies are introduced when there are no better alternatives, but they initially carry an inconvenience yield. Over time, these monies may become more money-like, but they do not always achieve a positive convenience yield. Technology advances and reputation formation pushed private banknotes toward a positive convenience yield. We show that the same forces are at work for stablecoins."
#Fintech#CryptoAssets#Stablecoins#DFC
·papers.ssrn.com·
Making Money by Gary B. Gorton, Chase P. Ross, Sharon Y. Ross
Diem Confirms Shutdown as Silvergate Acquires the Project's Assets
Diem Confirms Shutdown as Silvergate Acquires the Project's Assets
Silvergate Bank confirmed that it's purchasing Diem’s development, deployment and operations tools, as well as tools “for running a blockchain-based payment network” for remittances and other applications. The Diem Association, the stablecoin project from Meta Platforms, will “begin the process of winding down” both the group and its subsidiaries over the next few weeks. Silvergate Bank described Diem’s work as running “in a pre-launch phase.”
#Fintech#CryptoAssets#Stablecoins#Facebook#DFC
·coindesk.com·
Diem Confirms Shutdown as Silvergate Acquires the Project's Assets
Bank that bought assets from Zuckerberg’s Diem plans to launch stablecoin
Bank that bought assets from Zuckerberg’s Diem plans to launch stablecoin
Silvergate Bank confirmed that it's purchasing Diem’s development, deployment and operations tools, as well as tools “for running a blockchain-based payment network” for remittances and other applications. The Diem Association, the stablecoin project from Meta Platforms, will “begin the process of winding down” both the group and its subsidiaries over the next few weeks. Silvergate Bank described Diem’s work as running “in a pre-launch phase.” Silvergate CEO Alan Lane said they hope to launch a stablecoin by the end of this year.
#Fintech#CryptoAssets#Stablecoins#Facebook#Sivergate#DFC
·cnbc.com·
Bank that bought assets from Zuckerberg’s Diem plans to launch stablecoin
Luna Foundation Guard Launches to Support UST Peg
Luna Foundation Guard Launches to Support UST Peg
"The Luna Foundation Guard, a new decentralized organization developed to support the Luna ecosystem, has been launched last week in Singapore. The institution will offer funding in the form of grants to support initiatives built on top of the Luna network. One of its biggest functions will be to establish a “forex reserve” that will aid UST, the companion stablecoin of the Luna ecosystem, to maintain its peg."
#Fintech#CryptoAssets#Stablecoins#Terra#DFC
·news.bitcoin.com·
Luna Foundation Guard Launches to Support UST Peg
The Future of Payments Is Not Stablecoins
The Future of Payments Is Not Stablecoins
A NY Fed blog post argues that stablecoins are unlikely to be the future of payments, but if distributed ledger technology platforms are the transfer mechanism of the future, then tokenized bank deposits might be a fruitful avenue to pursue. One of the reasons given is that, because they are fractionally backed by reserves, tokenized deposits wouldn't lock up liquidity like stablecoins do, plus deposits support bank lending to the real economy and the transmission of monetary policy.
#Fintech#CryptoAssets#Stablecoins#UnitedStates#DFC
·libertystreeteconomics.newyorkfed.org·
The Future of Payments Is Not Stablecoins
Why stablecoins should not be regulated like Western Union
Why stablecoins should not be regulated like Western Union
So how are stablecoins being regulated in the U.S? One of the many frameworks that has been adopted is existing state-based money transmitter law. The biggest stablecoin – USD Coin – is issued by Circle Internet, a company that is licensed by around 40 different states to transmit money. Oddly, this is the same regulatory framework that applies to old school remittance companies like Western Union. If you've never made a remittance before, here's how it works. A retail customers temporarily hand over a small amount of money, say $200, to a Western Union agent. The agent contacts a foreign Western Union office and tells them to provide cash to the customer's friend or relative. In the early 2000s this money transmitter framework was expanded to cover the likes of PayPal. Whereas Western Union keep customer funds for an hour or two, tops overnight, customers of PayPal keep balances in their wallet for months, even years. This storage function means that PayPal is doing something quite different than Western Union.
#Fintech#CryptoAssets#Stablecoins#DFC
·jpkoning.blogspot.com·
Why stablecoins should not be regulated like Western Union
Japan's Biggest Bank to Issue Yen-Pegged Stablecoin for Settlement: Report
Japan's Biggest Bank to Issue Yen-Pegged Stablecoin for Settlement: Report
Mitsubishi UFJ Trust hopes to bring about instant settlement of securities transactions by using blockchain for trading and a Japanese yen-pegged stablecoin for payment. It will be similar to JPM Coin by JPMorgan, which is focused on speeding up wholesale payments such as bond transactions. Mitsubishi UFJ is looking to make settlements instantaneous, versus the couple of days it now takes.
#Fintech#CryptoAssets#Stablecoins#Settlement#Japan#DFC
·coindesk.com·
Japan's Biggest Bank to Issue Yen-Pegged Stablecoin for Settlement: Report
House Hearing Addresses Stablecoins and Regulation, Consensus May Emerge on Legislation
House Hearing Addresses Stablecoins and Regulation, Consensus May Emerge on Legislation
"Earlier this week, the House Committee on Financial Services held a hearing on stablecoins or digital assets tied to fiat currency. The Hearing was driven by the recent report by the President’s Working Group (PWG) on Financial Markets. While stablecoins are not (yet) systemically worrisome, the market has grown to $174 billion in market capitalization. Stablecoins currently represent more than 75% of trading on all digital asset trading platforms."
#Fintech#CryptoAssets#Stablecoins#UnitedStates#DFC
·crowdfundinsider.com·
House Hearing Addresses Stablecoins and Regulation, Consensus May Emerge on Legislation
Assessment of Risks to Financial Stability from Crypto-assets
Assessment of Risks to Financial Stability from Crypto-assets
The Financial Stability Board (FSB) published an examination of developments and associated vulnerabilities relating to unbacked crypto-assets, stablecoins; and decentralised finance (DeFi) and other platforms on which crypto-assets trade. The report notes that although the extent and nature of use of crypto-assets varies across jurisdictions, financial stability risks could rapidly escalate, underscoring the need for timely and pre-emptive evaluation of possible policy responses.
#Fintech#CryptoAssets#Stablecoins#DeFi#DFC
·fsb.org·
Assessment of Risks to Financial Stability from Crypto-assets
Wyoming Lawmakers Want State to Launch Its Own Stablecoin
Wyoming Lawmakers Want State to Launch Its Own Stablecoin
Wyoming lawmakers have proposed the Wyoming Stable Token Act (SF0106), which paves the way for the crypto-friendly state to launch its own dollar-pegged token. The act would allow Wyoming treasurer Curtis Meier Jr. to create a state stablecoin pegged to the U.S. dollar. The token would be redeemable for a single dollar held in trust by the state.
#Fintech#CryptoAssets#Stablecoins#UnitedStates#Wyoming#DFC
·decrypt.co·
Wyoming Lawmakers Want State to Launch Its Own Stablecoin
Avanti Is Now Custodia, Announces Countdown to Launch in Q2
Avanti Is Now Custodia, Announces Countdown to Launch in Q2
Wyoming-based Avanti Financial Group has changed its name to Custodia Bank, and announced plans to launch in Q2 with U.S. dollar deposit accounts for business customers, initially providing ACH and Fedwire services. Its post-launch roadmap includes digital asset custody, Avit™ (a payment instrument akin to a digital cashier’s check) and prime services, facilitated by customer-facing APIs to enable the programmability of payments by customers.
#Fintech#CryptoAssets#Stablecoins#Wyoming#Avanti#Custodia#DFC
·custodiabank.com·
Avanti Is Now Custodia, Announces Countdown to Launch in Q2
Tracing the footprint of cryptoisation in emerging market economies
Tracing the footprint of cryptoisation in emerging market economies
A new Bank for International Settlements (BIS) note provides estimates of the extent of "cryptoization" in emerging market economies (EMEs). In countries with volatile and/or depreciating exchange rates, holders of domestic fiat currencies have incentives to shift into reserve currency-pegged stablecoins, which conveniently help avoid capital controls and financial integrity requirements. The BIS note found that trading of US dollar-linked stablecoins vis-à-vis some EME currencies has soared since 2020, particularly against the Turkish lira and the Brazilian real. In addition, trading of risky crypto-assets, such as Bitcoin, also spiked in some EMEs facing depreciation pressure.
#Fintech#CryptoAssets#Stablecoins#CrossBorder#DFC
·bis.org·
Tracing the footprint of cryptoisation in emerging market economies
The emerging autonomy-stability choice for stablecoins
The emerging autonomy-stability choice for stablecoins
This paper by Maarten van Oordt illustrates how fiat-backed/pegged stablecoin peg deviations may occur when the issuer doesn't have reliable access to the traditional payment system of the jurisdiction that issues the relevant fiat currency. It suggests that national authorities could make stablecoin issuer access to payment systems conditional on submitting to regulatory controls. Stablecoin users would then face a choice between regulated stablecoins with a stable value but little autonomy, and alternative stablecoin arrangements with more autonomy but a less stable value.
#Fintech#CryptoAssets#Stablecoins#DFC
·research.vu.nl·
The emerging autonomy-stability choice for stablecoins
Why Stablecoin Interest Rates Are So Damn High
Why Stablecoin Interest Rates Are So Damn High
"Why are interest rates on dollar-pegged stablecoins so much higher than interest rates on actual dollars? You’d think that a stablecoin worth a dollar would command the same interest rate as a dollar, namely zero. But a quick search of lending rates on stablecoins reveals rates of anything from 9% to 13%, or even more."
#Fintech#CryptoAssets#Stablecoins#DFC
·coindesk.com·
Why Stablecoin Interest Rates Are So Damn High
USDF Stablecoin Consortium Adds 3 More Banks
USDF Stablecoin Consortium Adds 3 More Banks
"Amerant Bank, ConnectOne Bank and Primis Bank have joined founding members New York Community Bank, Synovus Bank, NBH Bank, First Bank and Webster Bank in the USDF Consortium, the group said in a statement Wednesday. Investment bank Piper Sandler will offer guidance through the process as the consortium grows."
#Fintech#CryptoAssets#Stablecoins#USDF#DFC
·coindesk.com·
USDF Stablecoin Consortium Adds 3 More Banks
Facebook Libra: the inside story of how the company’s cryptocurrency dream died
Facebook Libra: the inside story of how the company’s cryptocurrency dream died
"What emerges is a picture of Silicon Valley executives who thought they could charge into finance and make billions, if only they could surmount technical and regulatory barriers. What they failed to realise was that the very fact Facebook had conceived the idea, doomed it. As one government official involved in the process puts it: “Diem spent years trying to reverse engineer their project to fix all of its faults. But they could never fix being linked to Facebook. It was their original sin.”"
#Fintech#CryptoAssets#Stablecoins#Facebook#Regulation#UnitedStates#DFC
·ft.com·
Facebook Libra: the inside story of how the company’s cryptocurrency dream died
How Kenyan Micro-Task Workers Are Using Stablecoins To Make Affordable Cross-Border Payments
How Kenyan Micro-Task Workers Are Using Stablecoins To Make Affordable Cross-Border Payments
"According to a pilot study by Mercy Corps Ventures on a group of Kenyans providing micro-task services to Appen, a data company for the development of machine learning and artificial intelligence products, Stable coins were identified as the optimum solution that delivers the highest value to the micro-task worker as the transaction fees and speeds are lowest. The workers delivered services to Appen through a micro-working app named Corsali. They were then paid through the same app."
#Fintech#CryptoAssets#Stablecoins#Celo#Ethereum#Payments#DFC
·forbes.com·
How Kenyan Micro-Task Workers Are Using Stablecoins To Make Affordable Cross-Border Payments
Euroclear invests in Fnality, blockchain-based synthetic CBDC
Euroclear invests in Fnality, blockchain-based synthetic CBDC
Euroclear has invested in Fnality, the blockchain payments consortium formerly known as the Utility Settlement Coin (USC) and owned by 16 major financial institutions. Euroclear operates Central Securities Depositories (CSDs) across Europe, including Belgium, Finland, France, Ireland, the Netherlands, Sweden, and the United Kingdom. In October, Fnality plans to launch its first payment currency with pounds sterling deposited at the Bank of England. That makes it a so-called wholesale synthetic CBDC where the purpose is for institutions to use it for settlement, especially for blockchain-based transactions.
#Fintech#Blockchain#CryptoAssets#Stablecoins#wCBDC#Settlement#DFC
·ledgerinsights.com·
Euroclear invests in Fnality, blockchain-based synthetic CBDC
Responses to the Bank of England’s Discussion Paper on new forms of digital money
Responses to the Bank of England’s Discussion Paper on new forms of digital money
The Bank of England published a summary of the responses to the June 2021 Discussion Paper on potential monetary policy and financial stability implications of new forms of digital money, including CBDC and systemic stablecoins. Respondents generally agreed that access to cash should be preserved, and any regulation for systemic stablecoins should be clear, proportionate, and risk-based.
#Fintech#CryptoAssets#Stablecoins#Regulation#DFC
·bankofengland.co.uk·
Responses to the Bank of England’s Discussion Paper on new forms of digital money
Can Terra escape the coupon coin curse?
Can Terra escape the coupon coin curse?
"Terra’s design for its algorithmic stablecoins such as UST or KRT differs slightly from the coupon coin model and introduces a token called LUNA, with the equivalent function to the coupons or bonds seen in other designs to absorb the price volatility of its stablecoins."
#Fintech#CryptoAssets#Stablecoins#Terra#DFC
·mirror.xyz·
Can Terra escape the coupon coin curse?
Government sets out plan to make UK a global crypto-asset technology hub
Government sets out plan to make UK a global crypto-asset technology hub
The UK government announced moves that will see regulated stablecoins recognized as a valid form of payment as part of wider plans to make Britain a global hub for crypto-asset technology and investment. Measures include legislating for a ‘financial market infrastructure sandbox’ to help firms innovate, an Financial Conduct Authority-led ‘CryptoSprint’, working with the Royal Mint on a non-fungible token (NFT), and the establishment of a Crypto-asset Engagement Group to work more closely with industry. The UK government will also explore ways of enhancing the competitiveness of the UK tax system to encourage further development of the crypto-asset market in the UK, including reviewing how DeFi loans are treated for tax purposes.
#Fintech#CryptoAssets#Stablecoins#NFT#Regulation#Sandboxes#DFC
·gov.uk·
Government sets out plan to make UK a global crypto-asset technology hub
Circle Announces $400M Funding Round
Circle Announces $400M Funding Round
Circle Internet Financial, a global internet finance firm and the issuer of USD Coin (USDC) has entered into an agreement for a $400 million funding round with investments from BlackRock, Fidelity, Marshall Wace LLP and Fin Capital. The funding round is expected to close in the second quarter. In addition to its corporate strategic investment and role as a primary asset manager of USDC cash reserves, BlackRock has entered into a broader strategic partnership with Circle, which includes exploring capital market applications for USDC.
#Fintech#CryptoAssets#Stablecoins#Circle#DFC
·circle.com·
Circle Announces $400M Funding Round
Tether to reduce commercial paper holdings in USDT reserves
Tether to reduce commercial paper holdings in USDT reserves
Tether plans to reduce its holdings of commercial debt in its reserves, Chief Technology Officer Paolo Ardoino told CNBC. Tether holds short-term corporate debt but does not disclose from which companies, which has raised transparency concerns. But Ardoino said Tether, the issuer of the USDT stablecoin, will cut its holdings of commercial paper further than the current 30% of total reserves, and move the money to U.S. Treasurys.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·cnbc.com·
Tether to reduce commercial paper holdings in USDT reserves
Stablecoin issuer Circle Internet narrows deadline to apply for U.S. crypto bank charter
Stablecoin issuer Circle Internet narrows deadline to apply for U.S. crypto bank charter
Circle, the issuer of USD stablecoin, is pushing forward with its plans to submit an application to operate as a U.S. crypto bank, CEO Jeremy Allaire told Bloomberg. If approved, the startup would be the fourth federally chartered crypto bank in the U.S. Allaire added that his company and the U.S. Office of the Comptroller of the Currency, which facilitates bank charters, have been talking about Circle's digital asset banking prospects among other related topics such as the interoperability between blockchains.
#Fintech#CryptoAssets#Stablecoins#Circle#USDC#Regulation#DFC
·seekingalpha.com·
Stablecoin issuer Circle Internet narrows deadline to apply for U.S. crypto bank charter
The Stability of Algorithmic Stablecoins
The Stability of Algorithmic Stablecoins
Here is how an algorithmic stablecoin works. You invent two tokens, call them Dollarcoin and Sharecoin. You list them on the crypto exchanges. Sharecoin trades for whatever price is determined by supply and demand. It might be $0.01 per Sharecoin, or $1, or $100, who knows. But Dollarcoin is supposed to trade at $1. If it trades at $0.99, you have some automatic process in which you print more Sharecoins and use them to buy Dollarcoins until it is back to $1. If it trades at $1.01, you have some automatic process in which you print some more Dollarcoins and use them to buy Sharecoins until it is back to $1. The result is that Dollarcoin is firmly pegged to the dollar. The process is sometimes compared to algorithmic central banking, where the central bank maintains the value of the currency (Dollarcoin) by adjusting its supply.
#Fintech#CryptoAssets#Stablecoins#Terra#DFC
·bloomberg.com·
The Stability of Algorithmic Stablecoins