Kiffmeister’s #Fintech Daily Digest (09/16/2020)

Kraken Becomes First Crypto Exchange to Become a US Bank

The Wyoming Banking Board approved San Francisco-based crypto exchange Kraken’s application for a special purpose depository institution (SPDI) charter. Kraken is now the first SPDI bank in Wyoming. Kraken will also be the first newly chartered (de novo) bank in the state since 2006. By becoming a bank Kraken gets direct access to federal payments infrastructure, and can more seamlessly integrate banking and funding options for customers. As a state-chartered bank, Kraken now has a regulatory passport into other states. Up now, Kraken relied on third-party providers for wire transfers and other services.  

Bahamas to Roll Out Sand Dollar Digital Currency Next Month

According to Bloomberg, the Central Bank of the Bahamas will roll out its Sand Dollar digital currency nationwide in October, after piloting the islands of Exuma and Abaco since December. The central bank will mint more Sand Dollars as demanded, at the same time removing physical currency out of circulation to prevent inflating the monetary supply. Once the system is up and running, holders will be able to use their mobile phones to make person-to-person or business transactions — even when they’re offline. 

Central Bank Digital Currencies – Money Reinvented

CBDC are currently being investigated by several central banks, with China and Sweden having undertaken trials. Major uncertainties remain about how full-scale CBDC would operate and about their implications for capital markets. Further, there are important concerns about potential threats to individuals’ privacy. But, as this Deutsche Bank report points out, CBDC may soon become part of our lives, so societies need to learn how to use them best. 

French Multinational Bank to Launch a Digital Euro Pilot Using Tezos Blockchain

Blockchain firm Tezos has been selected by Societe Generale to spearhead the Banque de France’s digital currency pilot program. The French central bank selected Societe Generale in July after a successful review of applicants in development of a wholesale central bank digital currency (CBDC) to ease interbank settlements. 

Posted from Diigo: