Kiffmeister’s #Fintech Daily Digest (09/09/2020)

Mastercard Launches Central Bank Digital Currencies (CBDCs) Testing Platform

Mastercard announced a proprietary virtual testing environment for central banks to evaluate central bank digital currency (CBDC) use cases. The platform enables the simulation of issuance, distribution and exchange of CBDCs between banks, financial service providers and consumers. Central banks, commercial banks, and tech and advisory firms are invited to partner with Mastercard to assess CBDC tech designs, validate use cases and evaluate interoperability with existing payment rails available for consumers and businesses today. 

The Eastern Caribbean Central Bank DCash is coming soon!

The Eastern Caribbean Central Bank (ECCB) will soon launch its DCash digital version of the EC Dollar. The central bank digital currency (CBDC) will be rolled out initially in Antigua and Barbuda, Grenada, Saint Kitts and Nevis, and Saint Lucia. With it, for example, folks who live in Grenada will be able to send DCash to family and friends in Saint Kitts and Nevis. Those who shop in Saint Lucia but live in Antigua or Barbuda will be able to send DCash from Antigua Barbuda to pay merchants for goods and services in Saint Lucia. 

Maker seemingly gives up on Dai peg as interest rates are raised above 0%

MakerDAO (MKR) set interest rates on most assets, with the notable exclusion of Ether (ETH), back above 0%. Lowering interest rates is generally seen as a way of stimulating DAI creation, which is supposed to lower its price to its intended $1 peg, but DAI is trading at $1.03, significantly above its intended price. Maker has yet to find a satisfactory mechanism to entice arbitrageurs to bring the price down to $1. Several proposals based on strong-handed market interventions are being discussed, while external observers often bring up the idea of setting negative interest rates. The Maker community appears to be unwilling to cross that line for now, however. 

Top U.S. regulator pushes ahead with plan to reshape banking, sparking clash with states

The U.S. Office of the Comptroller of the Currency will start processing applications for charters from payments companies, including fintech firms and crypto-asset exchanges. A charter would give these companies the ability to operate across state borders with a single set of rules, as well as to expand the suite of financial services they offer. The push to broaden who receives bank charters touches on hot-button debates such as whether non-depository institutions should have direct access to the U.S. payments rails — giving them the ability to transfer money without going through a bank — and what the proper separation is between banking and other types of commerce. 

Evidence-Based Blockchain:Findings from a Global Study of Blockchain Projects and Start-up Companies

An evaluation was conducted of 517 blockchain firms against PCIO framework of evidence-based practice: Problem – Comparison – Intervention and Outcomes. It concluded that almost half of the blockchain firms show no explicit evidence of the problem to be solved. Approximately one-third fail to cite a comparison and intervention analysis, and less than 2 per cent demonstrate evidence of outcomes backed by filtered (critically appraised, peer reviewed) information. 

Deloitte’s 2020 Global Blockchain Survey

Deloitte’s 2020 Global Blockchain Survey called on over 1,500 executives to gauge changing attitudes and skepticisms towards blockchain technology. 83% see digital assets as an alternative to or complete replacement for fiat currency sometime in the near future. 90% cite digital identities as playing a significant role in upcoming strategies. 

Posted from Diigo: