Kiffmeister’s #Fintech Daily Digest (11/09/2021)

MAS lays groundwork for digital Singapore dollar

The Monetary Authority of Singapore (MAS) is embarking on Project Orchid – to build the technology infrastructure and technical competencies necessary to issue a digital Singapore dollar should the central bank decide to do so in future.  Its Managing Director said that while retail CBDC has its upsides, the case for it in Singapore is not urgent. Also, the MAS published a paper that sets out its initial assessment of the economic case for a retail CBDC in Singapore and its potential implications for financial stability and monetary policy. [Read speech here and paper here]

Russia to change laws for digital ruble, while central bank mulls 2022 prototype

Russia will reportedly havea prototype of the digital rouble platform ready in early 2022 and pilot-test it next year before making a final decision on the launch of the country’s central bank digital currency (CBDC). Also, Russian lawmakers will reportedly begin working on the legal adjustments needed to implement the digital ruble plan. At least eight federal laws and five codes must be changed for the digital ruble to take effect. The new rules will address several themes, such as the central bank’s authority to establish circulation for the new currency, and its acceptance as a means of payment. [Read more]

Bank of China Reveals Machine That Converts Foreign Currency to Digital Yuan

The Bank of China has reportedly shown a machine that converts foreign currencies into digital yuan. The machine is likely in preparation for the 2022 Beijing Winter Olympics, when the CBDC is set to be introduced to the rest of the world. Users need to link their passports to the transaction, but don’t need a bank account, and it supports 17 foreign currencies. [Read more]

Basel Committee advances work on specifying crypto-asset prudential treatment

The Basel Committee has reviewed the comments received regarding its consultation on the prudential treatment of banks’ crypto-asset exposures. It reiterated the importance of developing a conservative risk-based global minimum standard to mitigate prospective risks from crypto-assets to the banking system, consistent with the general principles set out in the consultative document. Accordingly, the Committee will further specify a proposed prudential treatment, with a view to issuing a further consultative document by mid-2022. [Read here]

Banque de France reports back on wholesale CBDC programme

The Banque de France published a report on its series of experiments with a wholesale central bank digital currency (#CBDC) but says its work has also thrown up new questions. The tests focused on ways of integrating CBDC into innovative procedures for the exchange and settlement of financial assets, based on new technologies such as distributed ledger technology (DLT), and in multi-currency and cross-border settings. The report covers nine experiments which were conducted as of September 2020 in conjunction with domestic and international private sector players, as well as other central banks and public authorities. Numerous technological partners were also involved, enabling the experiments to explore a broad range of technologies (see infographic below). [Read more]

MAS Enhances FinTech Regulatory Sandbox with Sandbox Plus

The Monetary Authority of Singapore (MAS) announced three enhancements to its FinTech Regulatory Sandbox framework to further catalyze financial innovation and FinTech adoption. Eligibility criteria will be expanded beyond first movers to include early adopters of technology innovation, the application process for financial grants will be streamlined, and there will be a “Deal Fridays” to help sandbox companies access the external investor community, to benefit from the network, mentorship, and funding. [Read more]

Robinhood breach leaks information of 7 million people

Trading platform Robinhood announced that an “unauthorized third party” managed to obtain personal information of their customers, although no social security numbers, bank account numbers, or debit card numbers were exposed. A list of email addresses for approximately five million people, and full names for a different group of approximately two million people, were obtained. [Read more]

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