Kiffmeister’s Fintech Daily Digest (05/03/2020)

Why are Central Banks Interested in Digital Currency?
With a decrease in the use of cash, the objectives pursued by the Central Banks with an electronic and universally accessible form of money are to anticipate the disappearance of cash, create an efficient and cheap means of payment, and strengthen regulatory controls. It is not a matter of “if” but a matter of “when”. Central Banks must define the objectives first, then get the design parameters right while carefully assessing the second order effects; and conduct thorough pilots before launching a central bank digital currency.

Bitcoin’s Third Halving Will Be Its Biggest Test Yet
Bitcoin holders, developers, users, investors, and speculators are poised for the third Bitcoin Halving, slated for May 12th. The event will cut miner block rewards in half from 12.5 to 6.25 BTC, with new coins added to the network every 10 minutes. The annual inflation rate will be reduced from ~3.64% to ~1.8%, a notable milestone as it declines below the Fed’s inflation target of 2% per year.

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