Beyond payments: central bank digital currency - Central Banking
"The issuance of central bank digital currencies, such as Sweden’s proposed e-krona, could facilitate monetary policy beyond the zero lower bound"
The Era of Central Bank Digital Currencies Is Within Reach - CoinDesk
Successful and wide-scale CBDC implementation would require architects to consider consumer demand, payment habits, and preferences within a particular country – possibly resulting in idiosyncratic design decisions. Adding to the growing discourse on the topic, in a recent research report for R3, JP Koning evaluates what a CBDC might look like if it were to be issued by the central bank of Brazil, the world’s eighth largest economy. While this paper anchors the analysis through specific treatment of the Brazilian market, many of the design decisions that central banks (or private sector companies on behalf of central banks) would have to make can be generalized to other economies as well.
UAE, Saudi Arabia using fintech for cross-border settlements | Reuters
The United Arab Emirates and Saudi Arabia have started using fintech for cross-border settlements, including a digital currency which they jointly developed for that purpose, the UAE’s central bank governor said on Wednesday.
Report: Venezuela Is Forcibly Converting Pension Balances to the Petro - CoinDesk
Venezuela has reportedly begun converting pensioners’ monthly payments into its controversial cryptocurrency, the petro.
More Americans are making no weekly purchases with cash
Americans are becoming less reliant on physical currency. Roughly three-in-ten U.S. adults (29%) say they make no purchases using cash during a typical week, up slightly from 24% in 2015.
At least 15 central banks are serious about getting into digital currency - MIT Technology Review
"Central banks are the institutions that set monetary policy for a nation, manage inflation, and act as the “lender of last resort”—such as the Bank of England in the UK and the Federal Reserve in the US. In fact, no fewer than 15 such central banks around the world are taking the idea seriously, and many others are at least exploring it, according to a recent report from the International Monetary Fund (IMF)."
Critics say cashless retailers penalize the poor - CBS News
"Many businesses are going cashless -- accepting only credit, debit and mobile forms of payment -- to cut costs associated with cash management and to speed transactions. This shift in payments suits the one in four Americans who say they don't carry paper money, but it excludes the unbanked -- would-be customers without checking or savings accounts."
Cameroon Anglophone separtists create cryptocurrency Ambacoin — Quartz Africa
"Increasingly determined and bold separatists seeking the international recognition of the self-proclaimed “Federal Republic of Ambazonia” (Southern Cameroons) have created a crypto-currency which they claim is the first to be fully nation-backed."
Should the Central Bank Issue E-money? - Bank of Canada
"Should a central bank take over the provision of e-money, a circulable electronic liability? We discuss how e-money technology changes the tradeoff between public and private provision, and the tradeoff between e-money and a central bank's existing liabilities like bank notes and reserves. The tradeoffs depend on i) the technological setup of the e-money system (as a token or an account; centralized or decentralized); ii) the potential improvement in the implementation and transmission of monetary policy; iii) the risks to safety and privacy from cyber attacks; and iv) the uncertain impact on banks’ efficiency and financial stability. The most compelling argument for central banks to issue e-money is to address competition problems in the banking sector."
Egypt’s Central Bank Conducting ‘Feasibility Studies’ Around Digital Currency Issuance
"The central bank of Egypt wants to introduce a digital version of the Egyptian pound to reduce costs, local English language news outlet Amwal Al Ghad reported Dec. 16. Ayman Hussein, sub-governor of the Central Bank of Egypt (CBE), told an Abu Dhabi conference on Sunday that “feasibility studies” were currently ongoing. In line with various authorities in the vicinity, Egypt believes a blockchain-based digital version of its fiat currency can help keep issuance and transaction costs to a minimum compared to coins and banknotes, Amwal Al Ghad notes."
Saudi Arabia Teams Up With UAE to Issue Joint Cryptocurrency - Sputnik International
"Saudi Arabia and the United Arab Emirates (UAE) have announced plans to issue a cryptocurrency for use in cross-border transactions. This, despite the fact that the Saudi Arabian Monetary Authority (SAMA) has effectively banned digital currencies in the Middle Eastern country."
Shyft partners with Bitt to enable a private and secure data ecosystem
"Shyft, the global blockchain-based network that facilitates the secure sharing of attested and compliant data, has announced the signing of a Letter of Understanding with Bitt inc., a Barbados-based fintech company that facilitates secure peer-to-peer transactions through its mobile payments software, mMoney. As part of this partnership, Bitt will become an active ecosystem participant utilizing the Shyft network for data transaction needs across Caribbean territories."
Move away from cash threatens to strand millions of Britons | Financial Times
"The report said moving away from cash was not “impossible or even undesirable”, but it cautioned that certain groups of people — including the old and disabled, and those in rural areas with poor internet connections — would suffer if they lose some of the control provided by notes and coins and are unable to access the cheapest retailers."
Lebanon’s Central Bank to Implement Blockchain technology
"the Lebanese central Bank will be issuing a digital currency in the near future. He explained, “Our working group at the Central bank has carried out an extensive research into the implementation of a digital currency. The Central bank will be launching this digital currency pegged to the Lebanese Lira to be used internally in the country only."
Bitfinex Crypto Exchange Launches Margin Trading for Stablecoin Tether
"Bitfinex has launched margin trading for the USDT/USD pair, which would purportedly lead to more efficient price discovery and enable users to hedge the exposure taken on stablecoins. Along with a dedicated lending market, USDT will be available as collateral for margin positions, the post further reads."
eCurrency Announces Commercial Launch of ePiso, a digital Philippine Peso
"eCurrency Mint Limited (eCurrency) announced today that its partner, Rizal Commercial Banking Corporation (RCBC) has launched its secure digital money product – the ePiso in the Philippines under the regulatory sandbox initiative recently introduced by the Bangko Sentral ng Pilipinas (BSP)."
RCBC sees rollout of digital currency ePiso by next year | BusinessWorld
"RIZAL COMMERCIAL Banking Corp. (RCBC) expects its digital currency to be fully rolled out next year, with the lender still testing the network across various communities."
The Federal Reserve says a national cryptocurrency is a bad idea — Quartz
"So, while the Fed could make the US dollar into a cryptocurrency, there just isn’t a good reason to do it. And, it’s not clear whether the Fed should even digitize the dollar. While increasingly electronic money may yet offer advantages for financial management and inclusion, for now, it’s clear that to the Fed, a national “cryptocurrency” doesn’t make much sense."
Central Bank Digital Currency for Cross Border Payments – Blog | Bitt
"Eventually, the vision is that digital bilateral currency swap agreements will be established between each country within CARICOM, such that little or no intra-regional trade or remittance flows will require hard currency for settlement. Instead, each payee will receive funds in their own domestic digital currency, via a digital wallet on their mobile device."
Moneyness: Swedish betrayal
"While digital payments share some of the blame for the obsolescence of paper kronor, the Riksbank is also responsible. The Riksbank betrayed the Swedish cash-using public this decade by embarking on an aggressive note switch. Had it chosen a more customer friendly approach, Swedes would be holding a much larger stock of banknotes than they are now. As long as other countries don't enact the same policies as Sweden, they needn't worry about precipitous declines in cash demand."
Cameroon Separatists Launch 'AmbaCoin' to Fund Independence Movement
"AmbaCoin is a decentralised public blockchain and cryptocurrency for the New Nation Ambazonia. The AMBA ICO is a Government Bond Smart Contract backed by the Rich Natural Resources in the territory, and a Buy-Back policy by the Post Independent Ambazonian Treasury that is supported by all political parties of Ambazonia."
Your Cash Is No Good Here. Literally.
More and more businesses like Drybar don’t want your money—the paper kind at least. It’s making things awkward for those who come ill prepared. After all, you can’t give back a hairdo, an already dressed salad or the two beers you already drank.
RBI shelves plan to launch digital currency - The Hindu BusinessLine
The central bank, in April last year, had announced it was looking at issuing its own Central Bank Digital Currency (CBDC) after it tightened the noose on cryptocurrency exchanges operating in the country, forcing several of them to shut shop. It had also set up an inter-departmental group to study the potential advantages and feasibility of the digital currency and submit its findings in June 2018. However, it has not made public any of the findings of the feasibility report. “The government doesn’t want the digital currency any more. It thinks it is too early to even think about a digital currency,” a source said.
Chinese merchants refuse cash as mobile payments take off
The ascent of mobile payments in China is quickly rendering cash obsolete, even as China’s central bank cracks down on merchants who refuse to accept bank notes and coins and tries to stop Ant Financial and Tencent dominating retail payments.
German cash-handlers to strike — Quartz
"Germans are famously stodgy about using cash, even as digital payments catch on in other parts of the world. But a strike by cash-transport handlers could accomplish what the likes of Visa and Apple Pay haven’t been able to—disrupt German spenders’ and their old-fashioned paper money."
Central Banks Are Not Issuing Digital Currency Soon
Proceeding with caution - a survey on central bank digital currency
"The hypothetical benefits and risks of central bank digital currencies are being widely discussed. This BIS paper adds to these discussions by taking stock of how progress and plans in this area are developing, based on a global survey of central banks. Responses show that central banks are proceeding with caution and most are only at a conceptual stage with their work. However, a handful have moved to considering practical issues and a couple of central banks with idiosyncratic circumstances might issue a digital currency in the short or medium term."
Divergent motives fuelling CBDC discussion, BIS survey reveals - Central Banking
"Emerging markets and advanced economies are motivated by different factors when considering whether to launch central bank digital currency, a survey conducted by the Bank for International Settlements concludes."
Brazil's New President Jair Bolsonaro Shuts Down 'Indigenous Cryptocurrency' Project
"Brazilian President Jair M. Bolsonaro has recently revealed through social media his administration has shut down a project that would see Brazil launch an “indigenous cryptocurrency.” The revelation came as he was criticizing the “BNDES black box” referring to contracts associated with the National Bank for Economic and Social Development, a federal public company associated with the Ministry of Development, Industry, and Trade with the goal of contributing to Brazil’s development by financing projects."
Sweden’s Central Bank Warns of Scammers Selling National Cryptocurrency 'e-krona'
"Sweden’s reserve bank has warned that the individuals and firms purporting to sell the electronic version of the national currency, the e-krona, are fraudsters as the digital currency project ‘has not been concluded’. According to Riksbank, ‘no decision has been taken on issuing e-kronas’ and therefore claims to the contrary were false."