DeFi May Not Herald Independence Day From Traditional Banking
PYMNTS, 05 July 2021
Independence Day weekend brings to mind freedom, of course. And before too long, we may have independence from the banks, from the third parties, and from the financial system itself. Or maybe not.
The promise of decentralized finance (DeFi) is that the advent of cryptocurrencies, and perhaps more significantly, blockchain, will eliminate the reliance on the traditional players in financial services. Continue reading “Article: DeFi May Not Herald Independence Day From Traditional Banking”
ECB Executive: Digital Euro Can Protect Privacy Better Than Private Alternatives
Rahul N., 21 June 2021
Fabio Panetta, a member of the executive board of the ECB, was interviewed by the Financial Times, saying that the digital euro was more capable of protecting privacy than private alternatives. The interview begins with the privacy question and how measures can be placed without making room for money laundering, tax evasion, and other illicit activities. The ECB executive was blunt in his response, saying that there was no self-serving interest from the bank.
In his remarks, Panetta said that one major reason why the digital euro would be better for privacy was because the financial institution had no interest in storing or monetizing user data. The comment follows a survey conducted by the European Central Bank (ECB) where they learned that privacy was a large concern for European citizens. Continue reading “Article: ECB Executive: Digital Euro Can Protect Privacy Better Than Private Alternatives”
The Big Difference Between a Digital Dollar and a CBDC
Joe Weisenthal, 15 June 2021
Outside of perhaps China, right now the big use case for central bank digital currencies (CBDCs) seems to be just talking about them. Crypto is cool right now and people are interested in digital money, so government and central bank officials are also spending a lot of time talking about their visions of how fiat currencies could be brought into this new realm.
However, there’s still a lot of ambiguity about how, say, a digital dollar would be designed, or what exactly it would accomplish. We’re still at the talking stage. Continue reading “Article: The Big Difference Between a Digital Dollar and a CBDC”
South Korea Changes Course and Begins Investigating CBDCs
John Anlyt, 13 June 2021
The central bank of South Korea (BOK) announced this week the launch of a second specialist team to supposedly develop a digital currency central bank (CBDC) a year after dissolving their first group of researchers.
The entity said it will rededicate itself to studying everything related to the creation and implementation of a CBDC, and the formation of the new research group appears to be a direct response to China’s plans to issue a digital yuan.
The announcement surprised the crypto ecosystem as it signifies a turnaround in South Korea . A little less than a year ago, the BOK stated that there was almost no possibility of a CBDC in the country, which is why the cryptocurrency and digital currency research task force was dissolved .
The beginning of 2020, with China’s firm decision to launch its own CBDC, caused the BOK to change its stance on the issue and claim that it is now ” in the process of investigating ” the possible issuance of its digital currency.
The BOK clarified that its team of researchers will be small, with an initial appointment of eight members specialized in areas as varied as IT, human resources, economics and management.
Popular exchange LocalBitcoins has been suspending user accounts in some countries in Africa, the Middle East and Asia without notice . As reported by Forbes these weeks, some users can no longer withdraw their bitcoins from the platform, who only communicated that it is due to a “process of improvements.”
The exchange made no further public comment on the matter. The first complaints began to be noticed last week , when LocalBitcoins users in countries such as Afghanistan, Iraq, Nigeria, Syria and Pakistan expressed that they could not withdraw their Bitcoins without deleting their accounts.
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Hong Kong to test linking China’s digital yuan with domestic payments
Reuters, 08 June 2021
Hong Kong is to test connecting China’s digital yuan with its domestic payments network, officials said on Tuesday, the second stage of trials of China’s digital currency in the financial hub.
China’s e-CNY is one of the most advanced central bank digital currency (CBDC) projects among major economies. Chinese officials say the project will be initially domestically focused, but cross-border trials are also under way in Hong Kong. Continue reading “Article: Hong Kong to test linking China’s digital yuan with domestic payments”
CBDCs may disrupt financial systems: Fitch Ratings
Steve Kaaru, 22 May 2021
One of the world’s largest credit rating agencies believes that central bank digital currencies (CBDCs) could disrupt the current financial systems. In its latest report, Fitch Ratings looked into how CBDCs could impact the global financial system, including giving governments a new way to track financial data and new financial policy options.
Several central banks around the world are looking at CBDCs. Some like the Bahamas have already launched their sovereign digital currencies while others like China are in advanced development stages. Yet, others like the U.S. and the U.K. are still exploring the feasibility of a CBDC and what effect it would have on the financial system. Continue reading “Article: CBDCs may disrupt financial systems: Fitch Ratings”