Central Bank Digital Currency: Considerations, Projects, Outlook
The Centre for Economic Policy Research (CEPR) has published a freely-downloadable book that brings together contributions from academics and experts from monetary authorities and international organizations to provide a detailed and insightful overview of the key considerations of current central bank digital currency (CBDC) developments worldwide. Specific chapters discuss the economic, legal and political implications of CBDC implementation, as well as assessing existing initiatives and reflecting on the future of the digital financial landscape. [Download here]
Palau partners Ripple on national stablecoin using XRP Ledger
The Republic of Palau has partnered with Ripple to develop a U.S. dollar-backed stablecoin for the country using the XRP Ledger. If launched, it could be the world’s first government-based national stablecoin (GovCoin). (The Pacific island nation has no central bank and uses the U.S. dollar as its official currency, so a CBDC is out of the question.) The IMF hasn’t opined on this yet, but it was only a month ago that it completed its 2021 Article IV mission and no mention was made of any such development. [Read more]
Senate Banking Panel Head Seeks Added Information About Stablecoins
The Senate Banking Committee has sent letters to stablecoin issuers Coinbase, Gemini, Circle, Paxos, Tether, TrustToken, Centre, and Binance US, asking about general business practices and safeguards. Responses are expected by December 3. This is likely a sign of an upcoming hearing. [Read more]
US OCC Issues Interpretive Letter on Cryptocurrency and Banks
The US Office of the Comptroller of the Currency (OCC) confirmed that national banks and federal savings associations can engage in crypto-asset activities, including providing custodian services, holding fiat reserves for stablecoin operators and operating cryptocurrency network nodes. However, they must demonstrate adequate controls in place before they can do so. [Read more]
India seeks to block most cryptocurrencies in new bill, government says
India is looking to bar most private cryptocurrencies when it introduces Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 in the winter session of Parliament, according to a bulletin posted on Lok Sabha, the Indian parliament’s official website. However, the Bill will permit “certain exceptions” to promote the underlying technology of cryptocurrency and its applications. The Bill also includes the framework for the Reserve Bank of India to issue central bank digital currency (CBDC). Of note, the Bill’s description is apparently identical to the one the government listed for the previous parliamentary session earlier this year. [Read more]
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