Kiffmeister’s #Fintech Daily Digest (11/12/2021)

SEC Rejects VanEck’s Spot Market Bitcoin ETF

The US Securities and Exchange Commission (SEC) rejected VanEck’s application to launch an exchange-traded fund (ETF) that directly tracks the price of Bitcoin. In its ruling, the SEC cited concerns that the Bitcoin spot market is prone to “fraud and manipulation.” To date, the SEC has only allowed Bitcoin ETFs linked to BTC futures contracts that are regulated by the Commodities and Futures Exchange Commission (CFTC) to move forward. [Read more]

Tether Papers: This is exactly who acquired 70% of all USDT ever issued

Protos catalogued and investigated every USDT ever sent to and from Tether, across the eight blockchain and layers on which it currently exists: Omni (Bitcoin), Liquid (Bitcoin), Ethereum, Tron, Simple Ledger Protocol (Bitcoin Cash), EOS, Solana, and Algorand. They found that two companies, Alameda Research (parent of crypto exchange FTX) and Cumberland Global (the crypto-trading sub of markets powerhouse DRW), were responsible for seeping 55% of all USDT into the crypto ecosystem. [Read more]

Swiss Central Bank Ready to Run With wCBDC in January: ‘Just Takes a Policy Decision

The Swiss National Bank (SNB) will technically be ready to launch a wholesale central bank digital currency (CBDC) in January 2022, using Switzerland’s Six Digital Exchange (SDX). However, a policy decision has yet to be taken, and there is the question of whether the SNB can legally issue wholesale CBDC. Also, Thomas Moser, a member of the SNB’s governing board, says there are no plans for going live at this point in time. [Read more]

Run-Proof Stablecoins

David Andolfatto explains how the theory of bank runs suggests that stablecoins might be rendered run-proof if their liabilities are properly designed. For example, a *credible* promise to suspend redemptions when redemption activity is abnormally high can serve to discourage runs. He describes how “smart contracts” could be used to bolster the credibility of the threat of suspending redemptions in the event of abnormal redemption activity, and may actually prevent any runs from occurring in the first place. [Read more]

The World Bank Launches a Fast Payments Toolkit

The World Bank has developed a Fast Payments Policy Toolkit, which consists of a global fast payments tracker as well as other resources pertaining to the topic. The tracker provides updates on jurisdictions around the world (by income level and geographic region) that have implemented fast payments and also provides information on different implementation aspects (such as technical features, technology, access rules) for each such jurisdiction. [Read more]

Upcoming Virtual Conferences at Which I’m Speaking:

World Banknote Summit 2021

The November 22-24 World Banknote Summit is a platform where the leaders of the global banknote community can meet and discuss current and future issues faced by banknotes as a form of payment. The summit plays host to various industry insiders and business experts who share their insights into banknotes, the dynamic and ever-changing face of the payments industry, the challenges on the horizon and potential solutions. The program is available here, and click here to register.

ITU DC³ Conference: From cryptocurrencies to CBDCs

The January 25-27 DC³ Conference: From cryptocurrencies to CBDC, will highlight the work of the Digital Currency Global Initiative with a spotlight on emerging trends, innovations and initiatives shaping the future of digital currencies. The conference is organized jointly by the International Telecommunication Union (ITU) and the Stanford University Future of Digital Currency Initiative (FDCI). The program is available here, and click here to register (it’s free).

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