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Stablecoins could offer central banks a shortcut, says New York Fed advisor
Stablecoins could offer central banks a shortcut, says New York Fed advisor
"Stablecoins could offer central banks a shortcut to having their own digital currencies, according to the NY Fed's Antoine Martin. “Instead of issuing a retail [central bank digital currency], central banks could support stablecoins by allowing them to be backed one-for-one with balances in a central bank account... Adapting our regulatory and legislative environment to support stablecoins is already a formidable task, but it is probably easier than managing a CBDC for retail use, especially as the private sector currently provides all retail digital means of payments on legacy technology."
#Fintech#CryptoAssets#CBDC#Stablecoins#UnitedStates#DFC
·theblock.co·
Stablecoins could offer central banks a shortcut, says New York Fed advisor
Central banks consider backing stablecoins instead of launching CBDCs
Central banks consider backing stablecoins instead of launching CBDCs
According to the New York Fed's Antoine Martin, “instead of issuing a retail central bank digital currency (#CBDC), central banks could support stablecoins by allowing them to be backed one-for-one with balances in a central bank account. They could also facilitate a bankruptcy remote legal structure to ensure that end-users are paid in full even if the issuer becomes bankrupt. Such stablecoins could be a close substitute for central bank digital money, while balances in a central bank account are risk free and could earn interest. Though stablecoin issuers should be subject to some oversight in exchange for access to a central bank account.”
#Fintech#CBDC#CryptoAssets#Stablecoins#sCBDC#DFC
·financefeeds.com·
Central banks consider backing stablecoins instead of launching CBDCs
President of Bank of Brazil Shows 'Open Finance' Digital Real Concept Featuring Stablecoin Integration and Payments Functionality
President of Bank of Brazil Shows 'Open Finance' Digital Real Concept Featuring Stablecoin Integration and Payments Functionality
The president of Banco Central do Brasil (BCB), Roberto Campos Neto reportedly introduced some novel ideas that the central bank has for a possible CBDC, including the integration of the digital real with traditional and decentralized financial structures and institutions. He also showed off a “super app” that will allow customers to hold stablecoins and the CBDC, and showcased the connection the system will have with the already available PIX payments network.
#Fintech#CBDC#Stablecoins#DeFi#LATAM#Brazil#DFC
·news.bitcoin.com·
President of Bank of Brazil Shows 'Open Finance' Digital Real Concept Featuring Stablecoin Integration and Payments Functionality
The OMFIF 2022 Future of Payments Report
The OMFIF 2022 Future of Payments Report
The Official Monetary and Financial Institutions Forum (OMFIF) published the 2022 edition of its Future of Payments report. It focuses particularly on the challenges of cross-border payments for emerging market countries, delving into the validity of cryptocurrencies and stablecoins as a means of escaping domestic inflation and sending cheap remittances. It also examines the value proposition of CBDC for emerging markets, as well as looking at some of the progress made by CBDC cross-border integration projects. Notably, while central banks think that interlinking CBDCs might be a promising avenue for enhancing cross-border payments, they are not pursuing CBDC in order to provide a solution to the cross-border payments problem. The consensus is that CBDCs must justify their existence with other merits , such as improving financial inclusion.
#Fintech#Payments#CBDC#CryptoAssets#Stablecoins#CrossBorder#DFC
·omfif.org·
The OMFIF 2022 Future of Payments Report
The future monetary system
The future monetary system
"This chapter is organised as follows. To set the stage, it first describes today's monetary system and the high-level objectives it needs to achieve, and to what extent changes in technology and the economic environment have opened up room for improvement. The next section discusses the promise and pitfalls of crypto and DeFi innovations. The chapter then discusses a vision for the future monetary system, built on central bank public goods. The final section concludes."
#Fintech#CryptoAssets#Stablecoins#CBDC#Tokenization#BIS#DFC
·bis.org·
The future monetary system
Palau continues to work with Ripple to explore the creation of national stablecoin
Palau continues to work with Ripple to explore the creation of national stablecoin
President Surangel Whipps Jr. reportedly confirmed that the Republic of Palau continues to work with Ripple on the creation of a government-issued US dollar-backed stablecoin (the US dollar is Palau's national currency). Last year Ripple announced a partnership with Palau to explore a national digital currency and its use cases based on XRP Ledger, initially focusing on cross-border payments.
#Fintech#CryptoAssets#Stablecoins#GovCoins#CBDC#Ripple#DFC
·bizzabo.engage-live.co.uk·
Palau continues to work with Ripple to explore the creation of national stablecoin
Banks concerned USDC stablecoin will become 'backdoor CBDC' with BlackRock help
Banks concerned USDC stablecoin will become 'backdoor CBDC' with BlackRock help
The US-based Bank Policy Institute (BPI) is raising concerns that a sizeable proportion of Circle's USDC stablecoin reserves could be parked at the Federal Reserve, despite Circle not having a central bank account. Since November, BlackRock has been managing about two-thirds of the reserve assets in a bespoke money market fund, the Circle Reserve Fund (CRF) , which invests mostly in U.S. short-dated Treasuries. The BPI claims that Blackrock has applied for the fund to access the Fed's overnight reverse repo (ON RRP) facility, which provides money funds and government-sponsored enterprises a standing option to invest overnight with the Fed at a fixed rate, currently 4.3%. This involves the fund buying Treasuries from the Fed, which are resold to the Fed at a future date at a slightly higher price. The net effect of the cash flows, with the transfer of money to the Fed, is not dissimilar to depositing the USDC reserve cash at the Federal Reserve. The use of the ON RRP by the CRF could effectively transform USDC into a "backdoor" synthetic central bank digital currency (CBDC) if all of the assets are parked there. https://bpi.com/will-usdcs-blackrock-money-fund-create-a-back-door-cbdc-give-usdc-an-account-at-the-fed-or-both/
#Fintech#CryptoAssets#Stablecoins#CBDC#sCBDC#UnitedStates#DFC
·ledgerinsights.com·
Banks concerned USDC stablecoin will become 'backdoor CBDC' with BlackRock help
Iran and Russia are developing a stablecoin backed by gold
Iran and Russia are developing a stablecoin backed by gold
Iran and Russia are reportedly looking to launch a new gold-backed stablecoin to be used for cross-border transactions in the place of the US dollar, the Iranian rial and the Russian ruble in the Persian Gulf region. The cryptocurrency would also specifically intended as a payment method in the Astrakhan area – an economic zone whose design helped Russia begin to receive cargo shipments from Iran.
#Fintech#CryptoAssets#Stablecoins#CBDC#Russia#Iran#DFC
·coinjournal.net·
Iran and Russia are developing a stablecoin backed by gold
Universal digital payments network for stablecoins, CBDCs launches at Davos
Universal digital payments network for stablecoins, CBDCs launches at Davos
"Multiple global banks will participate in use case proof of concepts (POCs) this month, to show how the UDPN will integrate digital currencies into daily businesses, banking and payment. The first two POCs will involve two banks testing UDPN’s digital currency cross-border transfer and swap capabilities, and how financial institutions can execute anonymous stablecoin transfers through the “travel rule” function." https://www.udpn.io/home
#Fintech#CryptoAssets#Stablecoins#CBDC#China#DFC
·forkast.news·
Universal digital payments network for stablecoins, CBDCs launches at Davos
Traditional Banks Set to Dominate Crypto Stablecoin Market as Regulatory Certainty Grows
Traditional Banks Set to Dominate Crypto Stablecoin Market as Regulatory Certainty Grows
My SODA colleague Chris Ostrowski and Chris Hayes, in another CoinDesk article, make three predictions on the landscape for CBDCs and stablecoins in Europe and in the U.S. based on the trends they’ve seen through engagement with central bankers and policymakers.
#Fintech#CryptoAssets#CBDC#Stablecoins#SODA#DFC
·coindesk.com·
Traditional Banks Set to Dominate Crypto Stablecoin Market as Regulatory Certainty Grows
Innovation and the future of the monetary system
Innovation and the future of the monetary system
Bank for International Settlements (BIS) General Manager Agustín Carstens called for  the development of a  “unified ledger” that would allow different parts of the digital financial ecosystem to work together seamlessly. More specifically, such a ledger could bundled together central bank digital currencies (CBDCs) and tokenized deposits, linked with smart contracts, to create a "money Lego" ecosystem. And Mr. Carstens claimed that all of a unified ledger's potential benefits  could be achieved on permissioned platforms with various degrees of centralization.
#Fintech#CBDC#Stablecoins#Tokenization#SmartContracts#BIS#DFC
·bis.org·
Innovation and the future of the monetary system
Wrapped CBDC
Wrapped CBDC
Financial interoperability requires a stable price as means of value exchange. The first implementation of wrapcbdc is Convexity eNaira(CNGN) which is currently available on the Bantu Network as well as Binance Smart Chain. CNGN creates possibilities in payments, lending, investing, trading and trade finance.
#Fintech#CBDC#Africa#Nigeria#Stablecoins#DFC
·wrapcbdc.com·
Wrapped CBDC
Whether Private Or Public, The U.S. Needs A Digital Dollar
Whether Private Or Public, The U.S. Needs A Digital Dollar
David Birch: "The travails of Silicon Valley Bank (SVBVB), which went from having an A credit rating to being taken over by the Feds in three days, reminded me of a the words of Morgan Ricks, a professor at the Vanderbilt Law School and a former Treasury official, who said "there's nothing inherently dodgy about stablecoins. But there is something inherently dodgy about banking, which is why countries build elaborate regulatory regimes to protect deposits”. Indeed. We should be encouraging truly stable stablecoins. Most of all, we should be encouraging a digital dollar."
#Fintech#CBDC#CryptoAssets#Stablecoins#DFC
·www-forbes-com.cdn.ampproject.org·
Whether Private Or Public, The U.S. Needs A Digital Dollar
Digital Currency and Banking-Sector Stability
Digital Currency and Banking-Sector Stability
"Digital currencies provide a potential form of liquidity competing with bank deposits. We introduce digital currency into a macro model with a financial sector in which financial frictions generate endogenous systemic risk and instability. In the model, digital currency is fully integrated into the financial system and depresses bank deposit spreads, particularly during crises, which limits banks’ ability to recapitalize following losses. The probability of the banking sector being in crisis states can grow significantly with the introduction of digital currency. While banking-sector stability suffers, household welfare can improve significantly. Financial frictions may limit the potential benefits of digital currencies."
#Fintech#CryptoAssets#CBDC#FinancialStability#Stablecoins#DFC
·financialresearch.gov·
Digital Currency and Banking-Sector Stability
Russia touts common digital currency between Russia, China, India
Russia touts common digital currency between Russia, China, India
The Deputy Chairman of the State Duma, Alexander Babakov, suggested that Russia, China and India should trade using a common digital currency, which could be a digital ruble, rupee or yuan. "India, Russia, and China are the countries that now create a multipolar world that is backed by the majority of countries. Its creation should be based on establishing new financial ties based on a system that does not safeguard today's dollar and euro, but rather creates a new currency capable of serving our goals," he said. https://tass.com/economy/1596017
#Fintech#CBDC#Stablecoins#Russia#China#India#AMLCFT#DFC
·ledgerinsights.com·
Russia touts common digital currency between Russia, China, India
Texas Bill Would Create State-Issued Gold-Backed Digital Currency
Texas Bill Would Create State-Issued Gold-Backed Digital Currency
Bills introduced in the Texas House and Senate would require the state comptroller to establish a digital currency that is fully backed by gold and fully redeemable in cash or gold. The comptroller would be required to create a mechanism to use this digital currency in everyday transactions. In practice, individuals would be able to purchase digital currency from the state. The state would then use the money to purchase gold that would be held in the Texas Bullion Depository or another secure vault. The bills must next be assigned to committees, after which they must get a hearing and pass by a majority vote before moving forward in the legislative process.
#Fintech#CBDC#GovCoins#UnitedStates#Stablecoins#DFC
·schiffgold.com·
Texas Bill Would Create State-Issued Gold-Backed Digital Currency
The Digital Currency Monetary Authority (DCMA) Launches an International (CBDC)
The Digital Currency Monetary Authority (DCMA) Launches an International (CBDC)
The Digital Currency Monetary Authority (DCMA) announced their official launch of an international central bank digital currency (CBDC) at the 2023 International Monetary Fund (IMF) Spring Meetings. The press release implies that their Universal Monetary Unit (UMU) algorithmic stablecoin has the IMF's blessing, including quoting IMF Financial Counselor Tobias Adrian from a November 2022 speech that implies nothing about DCMA engagement. Also,  the following quote from the DCMA's legal counsel appears designed to mislead:  "although the IMF has not officially endorsed UMU, in reviewing the DCMA's whitepaper and in weekly team discussions, the IMF has yet to state any objections to UMU's FX premium rates and its monetary sovereignty approach."
#Fintech#CryptoAssets#Stablecoins#CBDC#IMF#DCMA#UMU#DFC
·prnewswire.com·
The Digital Currency Monetary Authority (DCMA) Launches an International (CBDC)
Central Bank of Montenegro to Develop a Digital Currency Strategy and Pilot
Central Bank of Montenegro to Develop a Digital Currency Strategy and Pilot
The Central Bank of Montenegro (CBCG) is working with Ripple to develop a strategy and pilot program to launch a national stablecoin, in a follow-up to Prime Minister Dritan Abazovic's related Tweet in January. The CBCG will work with Montenegro's government and academia to create a practical digital currency or secure currency solution to test blockchain functionality and potential. Montenegro uses the EUR, despite not being a member of the Eurozone, although it is a candidate country for European Union (EU) membership.
#Fintech#CryptoAssets#Stablecoins#CBDC#Ripple#Montenegro#DFC
·cbcg.me·
Central Bank of Montenegro to Develop a Digital Currency Strategy and Pilot
U.S. House Committee Publishes Draft Stablecoin Bill
U.S. House Committee Publishes Draft Stablecoin Bill
The U.S. House Financial Services Committee (FSC) published a draft version of a stablecoin bill, with proposals including a two-year moratorium on stablecoins backed by other cryptocurrencies and a request to study a central bank digital currency (CBDC). The draft puts the Federal Reserve in charge of non-bank stablecoin issuers, whereas insured depository institution issuers would fall under the appropriate federal banking agency supervision. Among the factors for approval is the ability of the applicant to maintain reserves backing the stablecoins with U.S. dollars or Federal Reserve notes, Treasury bills with a maturity of 90 days or less, repurchase agreements with a maturity of seven days or less backed by Treasury bills with a maturity of 90 days or less, and central bank reserve deposits. A subcommittee will hold a hearing on stablecoins on Wednesday, featuring Dante Disparte from USDC issuer Circle; the Blockchain Association's Jake Chervinsky; Columbia Professor Austin Campbell and New York Department of Financial Services Superintendent Adrienne Harris. https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=408691
#Fintech#CryptoAssets#Stablecoins#Regulation#UnitedStates#CBDC#DFC
·coindesk.com·
U.S. House Committee Publishes Draft Stablecoin Bill
Universal Monetary Unit White Paper
Universal Monetary Unit White Paper
The Digital Currency Monetary Authority (DCMA) has innovated a best-in-class design for CBDC leveraging a digital economic union. This paper outlines the blueprint for a best-in-class CBDC design and discusses how a digital economic union and an international CBDC could complement and strengthen the international monetary system. Several sovereign states have collaborated with the DCMA on a Model Law for an international CBDC, or money commodity, and have provided draft legislation for such outlined in Appendix 1.
#Fintech#CryptoAssets#Stablecoins#CBDC#DCMA#UMU#IMF#DFC
·umu.cash·
Universal Monetary Unit White Paper
The shape of things to come: innovation in payments and money
The shape of things to come: innovation in payments and money
Bank of England Deputy Governor Jon Cunliffe spoke about four areas where the tokenization of money is now being explored, stablecoins used for payments, the tokenization of commercial bank deposits, the next stage of the Bank of England’s Digital Pound work and the Bank’s work to ensure to ensure these new forms of money are robust and uniform. https://www.linkedin.com/feed/update/urn:li:activity:7054323252151599104/
#Fintech#CBDC#CryptoAssets#Stablecoins#Tokenization#UnitedKingdom#DFC
·bankofengland.co.uk·
The shape of things to come: innovation in payments and money
CBDCs & Stablecoins Market Report
CBDCs & Stablecoins Market Report
"Juniper Research’s new CBDCs & Stablecoins research provides in-depth analysis and evaluation of how these new payment system risk types are being developed and commercialised within financial markets; delivering critical insights on how they will change business models in payments, key vendors driving the evolution of the market and the future prospects for these payment types of digital assets. It provides an evaluation of the development of CBDCs (Central Bank Digital Currencies) and stablecoins across 19 different key countries of interest. The study also contains the Juniper Research Competitor Leaderboard; positioning 15 key CBDCs platform vendors."
#Fintech#CBDC#Stablecoins#DFC
·juniperresearch.com·
CBDCs & Stablecoins Market Report
Culture clash holds back digital currencies
Culture clash holds back digital currencies
"It would, however, be a mistake of historic proportions if society stopped using public money and threw away ‘trust’ as a concept. The challenge for central banks and other actors in the existing financial architecture is to create a form of public money on a blockchain that can deliver the promises of a decentralised digital economy. Just as at the beginning of the internet, it can be hard to envisage how the Web 3 world of non-fungible tokens, decentralised finance and cryptocurrencies can be anything more than just a niche fad, but the promise is real and the changes will be far-reaching."
#Fintech#CryptoAssets#Stablecoins#CBDC#Web3#DFC
·omfif.org·
Culture clash holds back digital currencies
MAS purpose bound money (PBM) technical whitepaper
MAS purpose bound money (PBM) technical whitepaper
The Monetary Authority of Singapore (MAS) published a paper proposing a common protocol to specify conditions for the use of digital money such as central bank digital currencies (CBDCs), tokenized bank deposits, and stablecoins on a distributed ledger. The whitepaper was supported by the release of open source software prototypes that demonstrate the concept of purpose bound money (PBM), which enables senders to specify conditions, such as validity period and types of shops, when making transfers in digital money across different systems.
#Fintech#CBDC#Stablecoins#Tokenization#DLT#Blockchain#Programmability#DFC
·mas.gov.sg·
MAS purpose bound money (PBM) technical whitepaper
IMF warns on Marshall Islands’ Fintech plans
IMF warns on Marshall Islands’ Fintech plans
IMF staff, in their concluding statement of their 2023 Article IV consultation mission, expressed concerns about the Fintech initiatives of the Republic of the Marshall Islands (RMI). These included the enactment of the DAO Act and the move to start registration of decentralized autonomous organizations (DAOs), and the potential launch of a stablecoin. Concerns included capacity constraints and questions regarding the understanding of the authorities to adequately regulate and supervise these initiatives. IMF staff also encouraged the authorities to expeditiously enact the SOV Repeal Bill. (In 2018 the RMI legislature passed the SOV Act making the RMI government-backed SOV crypto-asset a second legal tender, in addition to the US dollar, about which IMF staff had expressed reservations.)
#Fintech#CBDC#CryptoAssets#Stablecoins#DAO#IMF#Marshall_Islands#DFC
·imf.org·
IMF warns on Marshall Islands’ Fintech plans
Republic Of Palau And Ripple Labs Mint First Stablecoin
Republic Of Palau And Ripple Labs Mint First Stablecoin
The Republic of Palau has collaborated with Ripple Labs to mint its inaugural stablecoin, the XRP Ledger (XRPL) based Palau Stablecoin (PSC). The island state doesn't have a central bank and the US dollar is the country's main medium of exchange. The Ministry aims to reduce payment costs within the Palau and enhance access to financial services, particularly for underserved communities and socio-economic groups, using digital solutions. https://twitter.com/JHX_1138/status/1683445766952562689
#Fintech#CryptoAssets#Stablecoins#Sovereign#CBDC#GovCoins#Palau#XRP#Ripple#DFC
·bitcoinist.com·
Republic Of Palau And Ripple Labs Mint First Stablecoin
More details on the Republic of Palau kluk stablecoin proof-of-concept
More details on the Republic of Palau kluk stablecoin proof-of-concept
Ripple has provided more details on the U.S. dollar-backed Palau Stablecoin (PSC) proof-of-concept (PoC). Each PSC will be valued at one U.S. dollar guaranteed by a 1:1 reserve in fiat currency and issued on Ripple's XRP Ledger (XRPL). Palau’s Ministry of Finance (MOF) will supervise the system and trigger the issuance and redemption of stablecoin units, while always guaranteeing the 1:1 reserve. The PoC will roll out in phases, with the first three-month phase involving about 200 government employees and local merchants. If the first phase is successful,  additional phases will roll out later in the year (2023). https://www.palaugov.pw/wp-content/uploads/PALAU-STABLECOIN-FAQs-2.17.23.pdf
#Fintech#CryptoAssets#Stablecoins#Sovereign#CBDC#Ripple#Palau#DFC
·businesswire.com·
More details on the Republic of Palau kluk stablecoin proof-of-concept
Palau's Stablecoin Audit Process Advances
Palau's Stablecoin Audit Process Advances
The audit process on Palau’s XRP Ledger-based stablecoin (PSC) pilot is advancing, as the Ministry of Finance collaborates with the government auditors. 202 documents were printed and will be submitted for review. The audit was requested on account of concerns around the legality of the program and the funds used for its implementation. Concerns about money laundering risks were also expressed, although the Ministry of Finance replied that, because the ledger is fully transparent, with all money and spending is 100% visible, traceable, and attributable, these risks are well mitigated. https://twitter.com/JHX_1138/status/1694307856487456845
#Fintech#CryptoAssets#Ripple#XRP#Palau#Stablecoins#CBDC#DFC
·news.bitcoin.com·
Palau's Stablecoin Audit Process Advances
Palau to freeze USD-backed stablecoin after PoC launch in July
Palau to freeze USD-backed stablecoin after PoC launch in July
Palau is wrapping up its US dollar stablecoin (PSC) proof-of-concept (PoC) on September 8, 2023, just over a month after launch in July that was slated to run for three months. Following the distribution halt, PSC will also be frozen after September 15, becoming unavailable for spending by users. The government will send a survey to PoC participants, the results of which will be critical to developing the final report for the Palau Congress and the president, and ultimately deciding whether to move forward with the next phase of the stablecoin program. https://twitter.com/JHX_1138/status/1699650336581882041
#Fintech#CryptoAssets#Stablecoins#GovCoins#CBDC#Palau#Ripple#DFC
·cointelegraph.com·
Palau to freeze USD-backed stablecoin after PoC launch in July
A Tokenised Future for the Australian Financial System?
A Tokenised Future for the Australian Financial System?
Reserve Bank of Australia (RBA) Assistant Governor Brad Jones provided an update on the RBA's central bank digital currency (CBDC) proof-of-concept work. First, the project highlighted a range of areas where CBDC could add value in wholesale payments, including by facilitating atomic settlement in tokenized asset markets. Second, it highlighted opportunities for a wholesale CBDC to act as a complement to new forms of privately issued digital money, such as tokenized bank deposits and asset-backed stablecoins. Third, further applied research is needed to better understand operational design issues for new forms of ledgers.
#Fintech#CBDC#Tokenization#Stablecoins#CryptoAssets#Australia#DFC
·rba.gov.au·
A Tokenised Future for the Australian Financial System?