“Narrow banks would improve the competition in deposit markets, which would in turn would reduce the current subsidisation of incumbent banks, improve the transmission of monetary policy, raise deposit rates at other banks and reduce dispersion in money market rates,” McAndrews wrote in comments to the Fed.
Up to five new digital bank licences will be issued here, paving the way for non-bank players to break into a local financial services scene dominated by a handful of traditional providers.
Dukascopy intends to issue ERC-20 stablecoins dubbed “Dukascash” pegged to the euro, Swiss franc, and U.S. dollar, and gradually increasing the list of Dukascash tokens’ base currencies depending upon customer demand.
The ‘travel rule’, which is currently applied to wire transfers in the US, would mean exchanges need to swap sensitive customer information when transferring funds — a policy that might not sound the death knell for cryptocurrency, but could introduce significant complications for platforms in jurisdictions that decide to introduce legislation reflecting the new guidance.
Global payment services provider Swift has said that its new cross-border payments platform is coping with greater consumer demand for speed and transparency. Swift launched its global payments initiative, or GPI, in 2017, in an attempt to speed up cross-border payments systems.
CME saw a record volume of USD 1.6 billion and record open interest for Bitcoin contracts of USD 373 million, on June 26, 2019. The value of BTC rose to almost USD 14,000, causing short traders to liquidate over half a billion dollars in a single day.
Ex-WBG Chief Economist Kaushik Basu: “Policymakers must urgently consider what kind of world private digital money could create. We may then need new laws and global treaties to mitigate potential negative fallout and curb the power of the organizations that run these new currencies.”
If the purpose of a stablecoin is to offer a new kind of payment instrument that uses fiat currency as the settlement asset, the question becomes, what added value, if any, such a product would bring to the everyday user. But Libra doesn’t even seem to have the intention of developing front-end solutions for everyday users. Instead, its core proposition is limited to becoming a new settlement asset, diluted by the fact that it will be patched together from other existing ones.
Libra, unlike other stablecoins, is intended to complement national currencies rather than replace them. This doesn’t mean, however, that Facebook understands monetary economics any better than my 24-year-old [Silicon Valley] luncheon companions.
Posted from Diigo
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Published by kiffmeister
The Kiffmeister is a former Senior Financial Sector Expert at the International Monetary Fund.
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