Kiffmeister’s FinTech Daily Digest (07/29/2020)

When looking at potential technologies to support this central bank digital currency (CBDC) model, the Bank of Canada is considering a universal access device. It is a device which would store and transfer CBDC without consumers having to have a smartphone, so it could look very much like a prepaid card. But the key feature is that it would have to be available to everyone and be low cost. It would also have to be designed to satisfy the needs of people with motor, sensory and cognitive impairments, which is another reason why people use cash. The universal access is kind of a core desirable feature of CBDC but having some kind of device that would deliver that is something we’ve been exploring pretty aggressively. 
The Bangko Sentral ng Pilipinas has reportedly created a committee to look at the feasibility and policy implications of issuing its own digital currency. The initial results of study is expected next month. 
Analytics firm Coin Metrics has a new way to weed out fake data from crypto volume metrics. Only 13 crypto exchanges can be trusted to provide accurate volume figures, according to the firm’s new Trusted Volume Framework. The framework more accurately measures trading volumes across crypto markets. Many exchanges, particularly those which list illiquid altcoins, have a reputation of falsifying volumes in a bid to attract traders. 
This literature survey focuses on the microeconomics of cryptocurrencies; What drives their supply, demand, trading price and competition amongst them. This literature has been emerging over the past decade and the purpose of this paper is to summarize its main findings so as to establish a base upon which future research can be conducted. 
This IMF working paper finds that digital technologies have the potential to boost small and medium sized enterprise (SME) productivity and growth in the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region. Economies are rapidly digitalizing, so SMEs need to embrace digital solutions to compete and survive. Therefore, for SMEs to be effective engines of inclusive growth, a rethinking of MENAP SME development strategies is needed, including making SME digital transformation a priority. 
The International Swaps and Derivatives Association (ISDA) and the International Securities Lending Association (ISLA) have agreed to closely collaborate on two key initiatives to deliver digital solutions to their respective memberships in a consistent and cost-effective way. As part of the agreement, ISLA will also work to model and code specific securities financing transaction (SFT) components for inclusion in the common domain model (CDM), creating greater alignment between derivatives and securities lending markets. The CDM establishes a single, common digital representation of events and processes that occur during the lifecycle of a trade, and is aimed at enhancing consistency and facilitating interoperability across firms and platforms.