Blockchain 

No One in the World Is Any Closer to CBDCs than China

China has the most progressive approach to central bank digital currencies (CBDCs) to date, according to Circle CEO Jeremy Allaire. The only global bank to really care  Allaire said that China’s central bank has the most advanced thinking about CBDCs in an interview aired on Phoenix Chinese News on Sept. 9. According to Allaire, the People’s Bank of China (PBoC) is the only global central bank that is working on the CBDC from a research and development perspective. The Circle CEO emphasized that the PBoC appears to be the most…

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Blockchain 

Should Crypto Stay Decentralized or Are CBDCs Better? Experts Answer

There are several countries around the world that are developing national blockchain-based digital currencies — such as Venezuela and its state-owned Petro (PTR), China and its plans to issue a government-backed digital currency, etc. We reached out to experts in the crypto and blockchain industries, central bank officials and researchers to answer whether or not we need a blockchain-based national digital currency if decentralized cryptocurrencies already exist. Related: Central Bank-Issued Digital Currencies: Why Governments May (or May Not) Need Them At the beginning of 2019, the Bank for International Settlements…

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Ethereum 

CBDCs Hold No Interest Without Full Anonymity: Banxico Deputy Governor

Central bank digital currencies (CBDC) will not hold much interest for the general public unless they provide full anonymity, the deputy governor of Mexico’s central bank has argued. The executive’s remarks were published by the Bank for International Settlements on July 11. Javier Calafell, deputy governor of the Bank of Mexico (Banxico), delivered a speech on potential strengths and weaknesses of CBDC during an event held by the United States Federal Reserve Bank and the OMFIF Foundation on July 9. While outlining CBDCs’ advantages such as security of payments and…

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Blockchain 

Central Bank of Russia Reviews Potential Benefits and Drawbacks of CBDCs

The central bank of Russia has reviewed the potential benefits and drawbacks of central bank digital currencies (CBDC) in a policy brief published on April 18. In the document, entitled “Is there a future for central bank digital currencies,” the Central Bank of the Russian Federation outlined a number of potential benefits of CBDCs, such as their capability to reduce transaction costs in the economy, as well as provide an asset that is less risky and more liquid. However, the Bank of Russia noted that CBDCs’ potential to minimize transaction…

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Bitcoin 

Central Bank of Korea Includes Research on CBDCs in Annual Report

South Korea’s central bank has included a summary of research on central bank digital currencies (CBDC) in its 2018 annual payment settlement report issued Tuesday, March 26. The development of distributed ledger technologies (DLT) and crypto assets has fueled a debate over CBDCs, especially after Uruguay and Tunisia issued their own, the report reads. The Korean central bank had also conducted its own research on CBDCs while it was considering launching one earlier in 2018 — an idea that was later put aside. The report included tests of blockchain-based solutions:…

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Bitcoin 

CBDCs Would Reduce Risks in Cross-Border Payments

Central bank digital currencies (CDBCs) can help improve counterparty credit risk for cross-border interbank payments and settlements, according to a new in-depth report jointly published by the central banks of Canada, the U.K. and Singapore, Nov. 15. A CBDC is a digital currency issued by a central bank whose legal tender status depends on government regulation or law. The “wholesale” variant of CBDC (W-CBDC) limits its use to financial institutions and markets, as opposed to a “retail CBDC” for the general public. The jointly compiled report looks into how to…

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Blockchain 

CBDCs Can Alleviate Risks That Contributed to 2008 Financial Crash

Stanley Yong, global lead for central bank digital currency (CBDC) solutions at IBM, has said that CBDCs can help to mitigate the risks that contributed to the 2008 financial crash. Yong spoke on his perspective of how to overcome the fragmentation of existing digital payment systems during an interview for CNBC’s Squawk Box Nov. 14. CBDCs, or national digital currencies, are virtual currencies that are issued and controlled by a federal regulator. CBDCs are not decentralized, like most cryptocurrencies — instead, they represent fiat money, only in digital form. Yong…

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