G+D/OMFIF report shows emerging market consumers ready to use CBDCs
G+D and the Official Monetary Financial Institutions Forum (OMFIF) surveyed consumers’ attitudes towards central bank digital currency (CBDC) in Germany, Indonesia, Nigeria, and the United States. The survey revealed sharp differences between consumers in developed countries, where consumers already have many established digital payment options, and developing countries, where there are fewer such options (see infographic below). In 91% of Nigerian respondents said they are likely to use CBDC, and 60% of Indonesians, versus 24% in the United States and 14% in Germany. CBDC awareness is also much higher in emerging markets. [Read more and download full report here]
ECB’s Fabio Panetta tries to make a case for a digital euro
ECB Executive Board member Fabio Panetta pushed back on the CBDC redundancy argument, pointing to the central role of public money in the economy, as the monetary anchor and by its fungibility with private money. Also, a digital euro would boost competition by making a free and easy to use digital means of payment available to everyone. In addition, the option to use CBDC would allow all European intermediaries, big and small, to offer products with a higher technological content at a competitive cost, making them better able to compete with global operators. [Read more]
Interoperability between payment systems across borders
The Bank for International Settlements (BIS) published a paper on cross-border payment system interoperability. It illustrates the public and private sector options using four stylized models, ordered in increasing complexity and cost but also greater efficiency – a single access point, bilateral link, hub and spoke or a common platform (see below). The BIS Innovation Hub is putting theory into practice with several innovative projects to foster interoperability across the four stylized models. [Read more]
Global Crypto Regulation Should be Comprehensive, Consistent, and Coordinated
An IMF blog post calls for a global crypto-asset regulatory framework that provides a level playing field along the activity and risk spectrum, and across borders. More specifically, crypto-asset service providers that deliver critical functions should be licensed or authorized, requirements should be matched to the main use cases, and authorities should provide clear requirements on regulated financial institutions concerning their exposure to and engagement with crypto-assets. [Read more]
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Key Findings of G+D/OMFIF CBDC Survey
Upcoming Virtual Conferences at Which I’m Speaking:
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).]
