Fan Yifei, a deputy governor of the People’s Bank of China (PBoC), outlined the major regulatory principles for the operation of the digital yuan. According to the renminbi’s indemnity provisions, the digital renminbi could be used to pay all public and private debts within the territory of our country, and it should be accepted everywhere in the country, and “no unit or individual may refuse to accept it if the conditions are met.” Here’s a link to the original Chinese language article: https://www.financialnews.com.cn/ll/gdsj/202009/t20200914_200849.html
With most reports focused on technical aspects, it’s time to look at how digital currencies will impact the prominence of the Euro. A widely adopted digital currency could force the Euro out of its position in second, especially with the US Dollar showing no signs of budging from the top position. Based on this, we explore the necessary steps to protect its current position and how a digital Euro might lend to this goal.
Booming demand for stablecoins in DeFi’s yield farming landscape is breaking DAI’s U.S. dollar peg. MakerDAO’s DAI, which uses Ethereum and other stablecoins as collateral to maintain the peg, is trading above its targeted peg, has been consistently trading above $1 since mid-March. The community responded by setting all rates to zero, but the demand for DAI is so extreme that even these zero rates don’t make a difference. MakerDAO’s community is debating some tweaks to its monetary policy to restore the peg, though Maker’s creator believes the only long-term solution is adding additional, varied collateral to the DAO.
The Financial Action Task Force (FATF) has identified certain behaviors and characteristics that serve as red flags for regulators trying to detect illegal or illicit transactions. One of the primary methods is to compare a user’s transaction activity with that of their profile. This can include instances where a deposit or transaction amount is inconsistent with a user’s available wealth or historical financial activity, perhaps signaling money laundering, a scam or a money mule. Other red flags include whether the person in question is much older than the average age of a crypto user, as well as if they have a criminal record or have been active on websites and public forums associated with illicit activity. Other red flags include instances where users send crypto to exchanges with no known KYC/AML checks, or where they are sending transactions that are just below the Travel Rule threshold. Regulators might also look at users who exchange digital assets on public and transparent blockchains (such as Bitcoin or Ethereum) for privacy coins, like monero or zcash, which obfuscate or withhold transaction activity from third parties.
Posted from Diigo: https://www.diigo.com/user/kiffmeister/Fintech