Kiffmeister’s Fintech Daily Digest (05/17/2020)

Is Central Bank Currency Fundamental to the Monetary System?
This Bank of Canada paper discusses whether the ability of individuals to convert commercial bank deposits into central bank money is fundamentally important for the monetary system. This is a significant question since the use of cash—the only form of central bank money that the public currently has access to—is declining rapidly in many countries. The question is also highly relevant to the discussion around whether central banks need to issue a retail central bank digital currency. The paper concludes that depositors’ need for control could be a reason why cash or a CBDC is essential, even in countries with strong measures safeguarding commercial bank money.

Trading Crypto-Assets in Myanmar to be Subject to Imprisonment, Fines or Both
The Central Bank of Myanmar announced that trading crypto-assets shall be subject imprisonment, or a fine, or both.

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