This BIS paper explores how interoperating multi-central bank digital currency (mCBDC) arrangements could reduce cross-border payment inefficiencies. This could be especially relevant for emerging market economies poorly served by the existing correspondent banking arrangements. Yet competing priorities and history show that these benefits will be difficult to achieve unless central banks incorporate cross-border considerations in their CBDC development from the start and coordinate internationally to avoid the mistakes of the past.
The Bank of Thailand is moving towards introducing stablecoin regulations as soon as this year. They will only cover stablecoins, and not crypto-assets like Bitcoin and Ethereum. However, the purview of the framework will not only include Thai baht-backed stablecoins, but also such digital currencies backed by foreign currencies and other assets.
Vietnam ranks second in terms of cryptocurrency use, driven by remittance payments, according to a recent survey by a global provider of market and consumer data Statista. Statista’s survey findings showed that 21 per cent of respondents in Viet Nam said that they used or owned cryptocurrency in 2020, the second-highest rate among 74 surveyed countries. Viet Nam came after Nigeria where almost a third said this applied to them.
A Bank of America research note estimated a net inflow into Bitcoin of just $93 million would result in price appreciation of 1%. By comparison, it found that it would take at least $2 billion worth of inflows to move the price of gold by a single percentile, while more than $2.25 billion would be needed to exert the same price impact on 20-year-plus treasury bonds. The researchers attributed the small amounts needed to move the price of Bitcoin to heavy accumulation from whales diminishing the number of coins available for purchase on exchanges. They found that the largest addresses have not been selling in aggregate since the pandemic began.
“The upper chamber of Wyoming’s legislature has passed a bill that, if approved, would clear the way for decentralized autonomous organizations, or DAOs, to become incorporated under state law. The 28-2 vote took place on Wednesday, public records show, and was sent to the State House of Representatives the same day. On Thursday, the bill was formally introduced and transferred to that chamber’s Minerals, Business & Economic Development committee.”
* The views expressed herein are those of the author and should not be attributed to the International Monetary Fund, its Executive Board or its management.