DFC

"The IMF CBDC paper discusses direct central banking in a manner that tries to appear balanced. But Lagarde’s speech, and the publicity, directly advocate the idea — and not just for failing economies. What’s driving this? My current theory is the Fallacy of Big Data, and the bureaucratic urge to centralised control — if only we had more data, then we could run everything perfectly! This is not an unreasonable urge! A central bank’s job is to manage an economy. And that requires data."

"Talking to IBENA's reporter, Seyyed Abotaleb Najafi said the national cryptocurrency has been developed and designed by Informatics Services Corporation at Central Bank of Iran's request to be utilized new technologies in expanding banking system services . He stated that the national cryptocurrency is issued by the central bank and can be used in a distributed and one-to-one framework for transferring without any institute's interference."

"The currency would be pegged at 1:1, and backed by physical reserves of fiat currency—a model for national cryptocurrencies some analysts predict could eventually pose a threat to the U.S. dollar."

This article attempts to clear up many of the misunderstandings that have governments, regulators, banks, and consumers confused. The authors also posit what lies ahead for commerce, the global banking system, the unbanked without access to finance, reserve currencies, and central banking systems and that all have a ‘new player in town’.

"We looked at 37 countries and determined how much cash is in circulation, as well as how much of it is being used. The TLDR: Electronic payment methods are booming, but as the data show, cash isn’t going down without a fight—especially in parts of the world where economic growth is both recent and fast."

"When did you last pay with cash? I suspect it was rather a long time ago. In Swe-den, the Riksbank's money has been used for 350 years, so it entails a historical shift if you and all of us, completely stop using central bank money to make pay-ments. Today we can buy food, pay our bills and receive medical prescriptions without needing to leave our homes. The more goods and services we purchase digitally, the more we need rapid and simple payment services that are adapted to our new way of shopping. Is it a problem that cash is being used less and less? Yes, in a way it is. If the Riks-bank is to fulfil its mandate, to ensure that Sweden has a payment system that is both safe and efficient, the means of payment we issue must also be used."

A recent CPMI survey of some 80 central banks on their work [on CBDCs finds that a] clear majority, 69%, is currently, or will soon be, conducting work related to CBDCs. The remaining central banks are typically either small in size, face more pressing challenges, or indicated that they rely on work by regional research programmes or international organisations, such as the BIS or the IMF. And of those that are conducting work - you can see this on the right-hand side - the majority, 57%, investigates two broad forms of possible application: a wholesale payment application restricted to large-value and high-priority transactions, such as interbank transfers, or a widely available, consumer-facing payment instrument targeted at retail transactions - what we call general purpose CDBC.21 Recent successful experiences also show a potential for cross-border remittances-related payment services, which confirms the potential for new technologies to support financial inclusion.

"The Central Bank of Iceland has published a report on the advantages and disadvantages of the issuance of digital currency the the Bank – a rafkróna. "

"Consumers in Dubai will soon be able to use digital currency to pay for goods, services, and utilities following a new government partnership, a press release confirms Tuesday, Oct. 9. The deal between emcredit, a subsidiary of the Dubai Department of Economic Development, blockchain payment provider Pundi X, and its partner Ebooc Fintech & Loyalty Labs LLC will facilitate point of sale (PoS) payments in emcredit’s emcash currency."

Nouriel Roubini: "Leading economic policymakers are now considering whether central banks should issue their own digital currencies, to be made available to everyone, rather than just to licensed commercial banks. The idea deserves serious consideration, as it would replace an inherently crisis-prone banking system and close the door on crypto-scammers."

"The International Monetary Fund released their latest perspective on the development prospects of Central Bank Digital Currencies. Exploring the benefits of various forms of money, the IMF seems to be of the mindset that while cryptocurrencies have gained traction, it is in fact private eMoney solutions that provide stored value facilities and an easy user experience that are best ranked. While citing Bitcoin, Ether and Ripple, the report seems to be remiss of the larger and intertwined developments occurring in the space as of late. One cryptocurrency firm is, at the very least, attempting to address issues and concerns the report highlighted having secured the necessary licenses, in the US and the UK, provide on-chain stable stored value facilities, in line with KYC and AML compliance requirements, as well as an easy customer facing interface – Coinbase."

"The rise in the volume of payments, Skingsley said, meant the Riksbank needed to think about whether it needs to update the RIX payment network – the system that handles the settlement of all payments made in kronor. “We are analysing whether we can take advantage of our European co-operation by joining the European Central Bank’s system for faster payments,” Skingsley said. But she said she was concerned such an arrangement would see another part of the core payments infrastructure move beyond Sweden’s borders."

"The digital revolution has profound implications for central banks. They have to decide whether to issue digital fiat currencies (DFCs) in order to maximize economic gains, remain relevant in a digital world, and respond to the cryptocurrency challenge. These considerations were apparent in the ITU DFC Focus Group conference at Cornell’s New York Tech Campus in late July, where central bankers formed the majority of more than 100 participants, and where I moderated the economic implications panel."

"The IMF has suggested Central Bank Digital Currencies, a digital-only form of fiat money which would seek to combine the ease of use of cash with a central bank ledger system to verify transactions. Implementing CBDCs requires significant testing: an IMF paper acknowledged they may be popular mainly in countries with less secure banking, and worried that adoption could cause digital bank runs. But CBDCs might one day offer consumers a faster, cheaper and safer alternative to physical cash and credit cards."

"The law consists of 64 articles and five transitory provisions. It validates Petro as a unit of commercial exchange within the country, and states that goods and services can also be purchased with Petro. Venezuela’s crypto exchanges are also reportedly allowed to carry foreign exchange operations using Petro under the new laws."

"I suggest that the IMF already has a cryptocurrency mechanism ready to replace the dollar as world reserve, and that it will be infused into the SDR basket at the height of the coming crash. The fact that the IMF has been introducing central bank crypto talking points over the past year indicates to me that the crash is imminent."

"Few countries have been moving toward a cashless society as fast as Sweden. But cash is being squeezed out so quickly — with half the nation’s retailers predicting they will stop accepting bills before 2025 — that the government is recalculating the societal costs of a cash-free future."

Perhaps a more important source of ongoing demand is the fact that using cash does not require the internet to be up, electricity to be working and the banks' systems to be operational. Banknotes are therefore an important emergency or back-up payment instrument. They are particularly useful in the event of natural disasters or failure of the electronic system. Perhaps one day the various systems will be so reliable that a backup will not be needed, but that day still seems some way off.

“Mobile payments are carving out lines between young and old, and between the prosperous urban middle class and those left behind by the boom times. Mismanaged moves to mobile payments by municipalities could also lock the elderly and the poor out of the consumption economy—just when the Chinese government needs as many spenders as possible.”

"As long as the e-krona’s design conforms to such regulations, it will offer an extremely constricted form of anonymity, one that is likely to be constricted even more over time. This would be a missed opportunity, especially since the Riksbank acknowledges that as a central bank it “does not need to observe” the narrow dictates of e-money laws. For now, the Riksbank’s pilot project will involve traceable transactions. One hopes that as the project evolves, the central bank will rethink its approach. The world is watching you, Sweden. "

"Stefan Ingves, the Riksbank’s governor, has asked the Riksdag to modify the concept of legal tender so that retailers are forced to accept banknotes. More specifically, Ingves wants providers of goods and services that are “important from a citizen’s perspective” to be subject to a cash requirement. He proposes that pharmacies, special transport services, food shops, and petrol stations be included on this list."

"Many people just don’t see much reason to continue to carry around paper money. But, there are in fact several good reasons to still keep an ample supply of greenbacks in your wallet, including..."

"The European Central Bank has unveiled its response to the rise of digital wallets with the launch of Target Instant Payments Settlement (TIPS), a pan-eurozone instant payments system. The new service will be available to both consumers and businesses across the 19 states in the eurozone and will offer near real-time payments via smartphones, PCs and in-store payment points."

"Today we celebrate the launch of TARGET Instant Payment Settlement (TIPS), a new component of the Eurosystem's TARGET Services."

"Payments and financial market infrastructures stand at a crossroads. Digital innovation, regulation and ever-evolving market structure have fundamental impacts on payments, clearing and settlement. Economics of Payments IX conference continues the tradition of bringing together academic researchers, central bank economists, and representatives of authorities to look at recent developments in these areas and to think creatively about the future of payments."

"Data from Coin Dance confirms that in the seven days ending Saturday, Venezuelans transacted 1284 BTC ($5.1 million) via P2P trading platform Localbitcoins alone. In terms of the country’s highly volatile national currency the Sovereign Bolivar (VES), last week saw higher numbers still, Localbitcoins trade capping 2.35 billion VES. The records come as president Nicolas Maduro instigated further upheaval Friday and Saturday, first raising the minimum wage in VES by 150 percent. A day later, Venezuela devalued the VES by more than 40 percent in a Dicom exchange rate reassessment – the first such major move since the currency replaced the old bolivar in August."

"The value of money is based on confidence. In a dynamically changing world G+D Currency Technology shares its unique knowledge of securing values. As a leader in currency technology in all key areas of currency circulation, we are constantly maximizing productivity, efficiency, and profitability."

"The Digital Fiat Currency Institute promotes the study, development, standardization, specification, promotion, and adoption of digital fiat currency (DFC) for the betterment of all people, regardless of their geo-socio-economic status, under the auspices and governance of a central bank, as an economically beneficial use and means of currency, without prejudice or discrimination.  "

"November 14th 2019 may not seem like a historic day to most, but for those in the Digital Currency world, it was seen as a watershed moment, as the Managing Director of the International Monetary Fund stated at a Fintech forum in Singapore “I believe we should consider the possibility to issue digital currency. There may be a role for the state to supply money to the digital economy. This currency could satisfy public policy goals, such as (i) financial inclusion, and (ii) security and consumer protection; and to provide what the private sector cannot: (iii) privacy in payments.”"

"The Severiges Riksbank has started a study to research how it could integrate Sweden in the eurozone’s new instant payments system."