FYI yesterday I did some minor updates to my tabulation of retail central bank digital currency (CBDC) explorers: https://kiffmeister.blogspot.com/2019/12/countries-where-retail-cbdc-is-being.html.
The US Federal Reserve Board published a discussion paper that examines the pros and cons of a potential U.S. central bank digital currency (CBDC). The paper summarizes the current state of the domestic payments system and discusses the different types of digital payment methods and assets that have emerged in recent years, including stablecoins and other cryptocurrencies. It concludes by examining the potential benefits and risks of a CBDC, and identifies specific policy considerations.
While a CBDC could provide a safe, digital payment option for households and businesses as the payments system continues to evolve, and may result in faster payment options between countries, there may also be downsides. They include how to ensure a CBDC would preserve monetary and financial stability as well as complement existing means of payment. Other key policy considerations include how to preserve the privacy of citizens and maintain the ability to combat illicit finance. [Read more]
NBH Bank and New York Community Bank have conducted the first USDF transaction over the Provenance Blockchain. NBH Bank minted the newly introduced stablecoin and sent it to a customer of New York Community Bank as part of a test run. USDF is a stablecoin offered by the USDF Consortium, a group of FDIC-backed banks that announced its formation last week. [Read more]
A Bank of Russia consultation paper has called for a ban on issuing, trading, investing in and mining cryptocurrency. The central bank proposed preventing financial institutions from carrying out any operations with cryptocurrencies and said mechanisms should be developed to block transactions aimed at buying or selling cryptocurrencies for fiat currencies. [Read more]
483 Crypto.com customer accounts were hacked during the week of January 17, 2022. A total of 4,836.26 ETH, 443.93 BTC and about $66,200 in other cryptocurrencies were siphoned off from its platform. The exchange initially halted withdrawals for around 14-hours after noticing suspicious activity with some of its accounts and committed to reimburse customers for any lost funds. [Read more]
To get these updates sent to your inbox, please sign up here. Also, for those interested in intra-day updates and news that didn’t make the Daily Digest cut, please check out my Diigo fintech bookmarks: https://www.diigo.com/user/kiffmeister/Fintech.
The CBDC Think Tank (CBDCTT) is hosting an in-person CBDC Workshop in Washington DC on February 24. It’s an intensive and hands-on CBDC course for central bank leadership and staff that are looking to understand and position for CBDCs. The workshop is a mix of lectures from CBDC experts and hands-on exercises. Certification of completion will be provided by the CBDCTT. Note that it is open only to staff from the official sector, such as central bank and finance ministry staff! [Register here]
The International Telecommunication Union (ITU) is organizing the “DC3 Conference – From Cryptocurrencies to CBDCs” scheduled to take place virtually from January 25 – 27, 2022. The Digital Currency Conference is organized by the Digital Currency Global Initiative (DCGI) which is a joint collaboration between the ITU and the Future of Digital Currency Initiative at Stanford University. I’ll be part of a “fireside chat” on the DCGI’s digital currency ontology work. [Register here]