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“The central bank digital currency (CBDC) aims to replace M0 – cash in circulation – while maintaining the anonymity of cash. The digital currency will not have an impact on M2 – usually defined as M0 plus traveller’s cheques, demand deposits, money market shares and savings deposits – as changing M2 could have an effect on monetary policy, Mu said.”
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“The PBOC will seize the trend to develop fintech, strengthen tracking and studying of the developments, and proactively meet new challenges. The PBOC will accelerate the research and advancement of China’s central bank digital currency, [and] track the development of virtual currencies both at home and broad.”
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“Australia, Canada, Germany and Sweden are close to abandoning cash payments and potentially accepting cryptocurrencies as a payment method.”
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“We find that Canada and Sweden show a similar long-term downward trend in small-denomination bank notes relative to GDP, reflecting declining cash use for transactions in both countries. These outcomes have been driven by the adoption of similar retail payment innovations in the two countries. “
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New Zealand’s tax authorities have ruled that income in cryptocurrencies is legal and provided guidance on how exactly it should be taxed.
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The expansion of mobile money services might be one of the most efficient ways of increasing the general collection of taxes—but probably not if you double-tax transactions first.
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“Essentially, Walmart’s offering looks more or less the same as nineteenth-century scrip, issued to company employees who could spend it only in the company’s stores. There is no word yet on whether Walmart employees will be paid in WalCoin, but it is a reminder that history has a habit of repeating itself, just with new people and new technologies.”
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Parallel currencies have existed for as far back as trade has existed. Whether a bushel of wheat or a cryptocurrency, their legal status, or lack thereof has not inhibited their proliferation — instead practical reasons have either led to their growth or decline — it’s not easy to bring a herd of a goat to trade for a few sacks of grain.
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“Even discounting the large number of unbanked adults who don’t have formal ID or mobile internet, and whom Libra won’t be able to reach in its initial stages, we estimate that Facebook’s digital currency still has the potential to reach between 370 and 800 million unbanked people1 by providing access to financial services, cheap capital, and the open, instant, and low-cost movement of money.”
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Facebook’s planned cyber currency, Libra, is little more than a glorified currency board – the failed arrangement that in 2001 caused the largest sovereign default the world had ever seen. A major risk is devaluation – and the problems don’t stop there.
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Facebook is getting into cryptocurrency because once they have a widely accepted payment method, their garden will be the largest in the world. Basically, a company is creating a walled garden when all of its apps, products, and services are interconnected with each other, and sometimes reliant on each other.
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The IRS’ recent warning letters to 10,000 traders offer hints at what its forthcoming guidance on crypto taxes might say. While the letters are not guidance, they hint that the IRS might be changing its required methods for calculating the value of crypto holdings and the forms and schedules for reporting them. Major questions remain unresolved, including how hard forks and airdrops should be treated.
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Crypto banks are banking institutions that engage in the standard range of money-related activities like deposits and withdrawals, savings, lending and borrowing, and investing in a wider range of instruments and markets. While this also describes a standard bank perfectly, crypto banks have integrated cryptocurrency into these financial functions. They’ve also gained legality in the eyes of local financial watchdogs.
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Governments worldwide are changing the way they regulate crypto assets to comply with the global cryptocurrency standards set by the Financial Action Task Force. Some are amending existing laws, while others are creating a new system to cooperate and share data.
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XRapid — which uses the XRP token to facilitate the instant settlement of money sent in one currency into a destination currency — is notably not used by many of Ripple’s other clients, such as Santander, Standard Chartered, and American Express.
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This report provides a detailed summary of our applied research based on data from six non-bank financial services providers – Accion, Brigit, Kabbage, LendUp, Oportun, and Petal – that have begun using cash-flow variables and scores in an effort to increase the provision of credit to consumers and small businesses who may have difficulty obtaining loans from traditional sources.
