The Banco Central de Reserva del Perú (BCRP) is reportedly working with the central banks of Singapore, India and Hong Kong in developing a central bank digital currency (CBDC). Earlier this month, the Monetary Authority of Singapore (MAS) announced that it was embarking on Project Orchid – to build the technology infrastructure and technical competencies necessary to issue a digital Singapore dollar should Singapore decide to do so in future. Plus the MAS is involved in several wholesale CBDC projects with other central banks, although not with the BCRP, unless I missed that memo. [Read more]
Meanwhile… the Reserve Bank of India (RBI) is reportedly going to pilot its CBDC in the first quarter of the next fiscal year. Previously, the central bank governor had said a pilot could be launched by December 2021 but there has been no official timeline committed to by the RBI. But again no mention of collaboration with the Banco Central de Reserva del Perú. [Read more]
Tony Richards, Head of Payments Policy at the Reserve Bank of Australia (RBA) revealed that RBA staff are still not convinced that a strong policy case has emerged in Australia for a retail CBDC. Australia’s existing electronic payments system already provides households and businesses with a wide range of safe, convenient and low-cost payment services. Also, much (if not all) of the innovation and new functionality that could potentially be enabled by a CBDC could in principle also be enabled by innovation based around commercial bank deposit accounts, e-money or stablecoins. But given the possibility that the balance could shift towards a case for issuance of retail CBDCs, the RBA has been stepping up its CBDC research. [Read more]
European Central Bank (ECB) Executive Board member Fabio Panetta pleaded the case for a digital euro in a Financial Times op-ed, arguing that, although Eurozone residents already have access to a vast supply of private digital means of payments that make a retail CBDC redundant. He views a digital euro as important to ensure that central bank money remains the trusted anchor of the payment system, to support financial stability and trust in the currency. This is crucial to preserving the transmission of monetary policy and thus protecting the value of money. [Read more]
Mr. Panetta also gave a speech that builds on the points made in the Financial Times op-ed, outlining how the ECB will structure its work in the investigation phase to ensure that it designs a digital euro that is attractive to consumers. [Read more]
MoneyGram announced a new pilot in the Stellar blockchain whereby both parties will launch a live cash-in and cash-out pilot in the United States. Participants can deposit cash into their wallets at participating MoneyGram locations and also send payments internationally via Stellar’s USDC. Also, the pilot allows participants to exchange USDC for any fiat currency supported on the MoneyGram platform. [Read more]
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