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Under the original Libra white paper, Libra Association members would receive dividends for profits generated by reserve assets, which created an incentive for decisionmakers to invest in risky assets for higher returns, at the expense of the retail public. However, in the new version of the white paper, interest earned from reserve assets will not be used to pay dividends to investors.
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This Bank of Lithuania paper presents the CBDC concept and typology, surveys the literature, documents initiatives undertaken by other central banks, and discusses monetary policy and financial stability implications.
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In a report detailing the progress of CBDC development around the world, the Central Bank of Lithuania says the little researched idea of a multi-currency CBDC deserves more consideration.
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Saga is launching a virtual currency which pegs its value to the basket of currencies that form the IMF’s special drawing rights. The U.K.-based company’s advisory board includes the likes of Nobel laureate Myron Scholes and J.P. Morgan’s Jacob Frenkel. But the firm doesn’t plan to launch its token in the U.S. yet, claiming it doesn’t currently have the regulatory clarity required to do so.
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Recent developments have re-opened the debate on the future of money. This Policy Contribution discusses two aspects: the implications of the rise of global private stablecoins, such as Facebook’s Libra, and the role that public central bank digital currencies could play.
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As digital trading evolves, the balance between competition, market stability and liquidity will be a critical test — for hedge funds, investment banks and regulators alike.
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Bakkt records over 50% surge in open interest, launching the options on Bitcoin futures contracts today along with cash-settled Bitcoin futures.
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“Cryptocurrencies do not solve mainstream problems. This does not represent a design flaw. In fact, this is an intentional trade off. Decentralized systems forsake scale, speed, and cost in favor of one key feature: censorship resistance. Cryptocurrency solves problems faced by the censored who, by definition, are not the mainstream.
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TransferWise will launch the Visa Direct-powered service in Spain, with plans to follow up in Bulgaria, Czech Republic, Hungary, and Romania and then scale it throughout Europe and worldwide in 2020.
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Santander, the Spanish banking group, recently became the subject of a Whale Alert tweet as they redeemed their first blockchain bond on the Ethereum ledger, worth $99,000.
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Open banking has grown to become a global phenomenon and while pioneers like the UK and the European Union (EU) have turned to regulatory action to support the industry’s transition into this new era of banking, legislators in Switzerland has reacted more cautiously so far. The Swiss Bankers Association (SBA) has already rejected the proposal for an interpretation of PSD2, the EU’s second payment services directive, to be adapted to the Swiss market and have instead let the market decide how the topic should be tackled.
