Kiffmeister’s #Fintech Daily Digest (04/26/2021)*

Ant Group and Tencent work with China’s central bank to push forward digital yuan

The Digital Currency Research Institute of the People’s Bank of China (PBOC) reportedly signed a technical strategic cooperation agreement with Ant Group to move forward with the development of the digital yuan based on Ant Group’s database, Ocean Base, and the mobile development platform, mPaaS. Tencent is also supporting and participating in digital yuan design, research, development and operational work. 

What Triggers Consumer Adoption of CBDC?

This De Nederlansche Bank surveyed a representative panel of Dutch consumers to determine public preferences regarding central bank digital currency (CBDC) demand. It found that roughly half would open a CBDC current or savings account, suggesting that consumers perceive CBDC as distinct from accounts offered by traditional banks. The amount respondents want to deposit in the CBDC savings account depends on the interest rate offered. Intended usage of the CBDC current account is highest among people who find privacy and security important, and have low trust in banks in general. 

Tether’s market cap tops $50 billion, supply on Tron surpasses Ethereum

The market capitalization of Tether (USDT) stablecoin has crossed the $50 billion mark, with the supply on Tron’s blockchain ($26 billion) exceeding that on Ethereum’s ($24.4 billion), because transaction fees are lower, and confirmation times faster on Tron. Most of the Tron-based Tether’s supply is on the lightly-regulated Binance, Huobi, and OKEx platforms. USDT remains the largest stablecoin by market capitalization, with about 66% market share, followed by USDC (17%) and BUSD (9%). 

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