First Look: China’s Central Bank Digital Currency
China’s digital currency will most likely be a two-tiered system. The first tier will connect the PBOC with commercial banks for currency issuance and redemption. The second layer will connect those commercial banks with the greater retail market.
tags: CryptoAssets CBDC Fintech AltCoins
Libra: The known unknowns and unknown unknowns | Eichengreen
“Libra remains a work in progress. Its designers continue to dribble out information about its structure and governance. But their documentation raises as many questions as it answers.”
Libra: A dramatic call to regulatory action
Facebook’s proposed creation of Libra is a wake-up call. It makes inescapable the need for rapid, international coordination of financial regulation. Without mechanisms to ensure consistent application of coherent global rules, we may find ourselves in a world of “low-quality finance havens” that exist to evade financial regulations—not unlike the “tax havens” that already exist merely to evade taxes.
The benefits of a global digital currency
“The overall risk of holding a global currency [like Libra] may not be large for plausible exchange rate volatility and risk aversion [but] the potential gain in lowering transaction costs in retail cross-border payments and local payments are large.”
Whether central banks adopt CBDC at all is another matter and will result from carefully weighing pros and cons. But to the extent central banks wish to offer a digital alternative to cash, they should consider sCBDC as a potentially attractive option.
US Banking Giant PNC Starts Using RippleNet for Cross-Border Payments
PNC — the United States’ eighth-largest bank, with almost $400 billion in assets — has become the country’s first to start using the RippleNet blockchain network for cross-border payments.
tags: Fintech Ripple CrossBorder Blockchain
Chinese Central Bank ‘Crypto’ Not Launching in November: State Media
The Global Times claims that China’s central bank has refuted recent reports of its plans to launch a state-backed cryptocurrency this November. The Global Times is China’s national English language tabloid, under the People’s Daily — the official newspaper of the Communist Party of China (CPC).
tags: AltCoins Fintech CryptoAssets CBDC
Fintech Firm Partners With R3 to Develop Shariah-Compliant Market Platform
Dubai-based fintech company Wethaq has entered into a strategic partnership with enterprise software firm R3, in order to create a platform for issuing and trading sukuk securities based on R3’s Corda offering.
tags: Blockchain Corda IslamicFinance Fintech R3
Monetary Stabilization in Cryptocurrencies – Design Approaches and Open Questions
Based on a survey of 24 specific stablecoin projects, we go beyond individual coins for extracting general concepts and approaches. We combine our findings with learnings from classical monetary policy, resulting in a comprehensive taxonomy of cryptocurrency stabilization.