FSB publishes targets for enhancing cross-border payments and progress under its Roadmap
The Financial Stability Board (FSB) published a progress report on the first year of the G20 Roadmap for Enhancing Cross-Border Payments, bringing together in one place the work under the wide-ranging, but interconnected, set of initiatives. Most of the milestones set for 2021 have been successfully completed or are close to finalization. The breadth of the work underway and the recognition of the importance of conducting sufficient external outreach has led some of the timelines to be extended. But the end-goals of the overall Roadmap remain firmly on track. The next stage of work in 2022 includes the development of specific proposals for material improvements of underlying systems and arrangements, as well as the development of new systems. [Read more]
The role of crypto-assets as legal tender: the example of El Salvador
A Bank of Spain report has scrutinized and reflected on the entrance of El Salvador into the Bitcoin world. Although El Salvador was not the first country to consider adopting Bitcoin as legal tender, it has pioneered its implementation, serving, in the eyes of many, as a testing ground for jurisdictions with weak currencies or fully dollarized economies that hope to end their reliance on the US dollar. The report concludes that a significant challenge will be overcoming the technical barriers associated with bitcoin usage, with little over 50% of the population having internet access and smartphone penetration barely reaching 40%. Also, it is unclear whether the $150 million stabilization fund at the state development bank, will be able to absorb such fluctuations, nor the outcome once the fund is depleted. [Read more]
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