Month: April 2022

Kiffmeister’s #Fintech Daily Digest (20220405)

~ kiffmeister

Targeted consultation on a digital euro

The European Commission (EC) is laying the groundwork for the possible introduction of a digital euro, issuing a targeted consultation aimed at collecting information on expected impacts on key industries (financial intermediation, payment services, merchants), users (consumer associations, retailers’ associations), chambers of commerce and other stakeholders in international trade. This is part of a digital euro impact assessment that will inform the development of supporting legislation and regulations. [Read more]

There’s a new way to quickly send U.S. dollars around the world with bitcoin

Lightning Labs is launching the Taro protocol, a technology that will route digital assets through the Lightning network – a payments platform built on top of bitcoin’s base layer that enables global, high volume, virtually instantaneous, and low-fee transactions on the bitcoin blockchain. However, the project is still in development mode. [Read more]

Gensler Says SEC Exploring Shared Role With CFTC Over Crypto Platforms

U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler said his agency is considering how to split oversight of crypto trading platforms between the SEC and the Commodity Futures Trading Commission (CFTC), as most platforms include tokens that fit definitions of securities as well as commodities. [Read full speech]

Upcoming events I’m affiliated with:

The CBDC Think Tank is hosting several webinars over the next month:

Satoshi Capital Advisors is hosting a virtual workshop on wholesale CBDC, stablecoins and digital capital markets on May 24 (starting at 08:00 EST). [Register here with the passcode: CBDC]

Kiffmeister’s #Fintech Daily Digest (20220404)

~ kiffmeister

UK government sets out plan to make UK a global crypto-asset technology hub

The UK government announced moves that will see regulated stablecoins recognized as a valid form of payment as part of wider plans to make Britain a global hub for crypto-asset technology and investment. Measures include legislating for a ‘financial market infrastructure sandbox’ to help firms innovate, an Financial Conduct Authority-led ‘CryptoSprint’, working with the Royal Mint on a non-fungible token (NFT), and the establishment of a Crypto-asset Engagement Group to work more closely with industry. The UK government will also explore ways of enhancing the competitiveness of the UK tax system to encourage further development of the crypto-asset market in the UK, including reviewing how DeFi loans are treated for tax purposes. [Read more]

Upcoming events I’m affiliated with:

The CBDC Think Tank is hosting several webinars over the next month:

Satoshi Capital Advisors is hosting a virtual workshop on wholesale CBDC, stablecoins and digital capital markets on May 24 (starting at 08:00 EST). [Register here with the passcode: CBDC]

Kiffmeister’s #Fintech Daily Digest (20220403)

~ kiffmeister

China Expands Digital Yuan Trials to More Cities

The People’s Bank of China (PBOC) said it will expand its digital yuan trial to more areas from the current 11 cities and regions, and conduct “deep research” on the impact on the country’s financial system. Trials have taken place in Shenzhen, Suzhou, Xiong’an, Chengdu, Shanghai, Hainan, Changsha, Xi’an, Qingdao, Dalian and at the 2022 Winter Olympic Games in Beijing and Zhangjiakou. Tianjin, Chongqing, Guangzhou, Fuzhou, Xiamen, Hangzhou, Ningbo, Wenzhou, Huzhou, Shaoxing and Jinhua will be added to the list of trial cities. [Read more]

Blueprint for a digital euro wallet

Rosa Giovanna Barresi provides a comprehensive analysis of the latest digital euro news from the European Central Bank based on recent speeches by Fabio Panetta, Chair of the Eurosystem High-Level Task Force on Central Bank Digital Currency. The investigation phase of the project started on July 14, 2021, and was intended to run until Q3 2023. Design-related decisions will be finalized by the beginning of 2023 and the following months will be spent in developing a basic prototype. [Read more]

Low smartphone penetration hits CBK’s digital shilling plan

Central Bank of Kenya Governor Patrick Njoroge has reportedly warned that lack of access to smartphones by more than half of mobile users in the country will hamper the rollout of its proposed central bank digital currency (CBDC) that requires access to the Internet. Of course readers of this blog know that the Governor has been misinformed, as there are a number of available CBDC platforms that do not require smartphones, including those of Celo, Roberto Giori and WhisperCash. [Read more]

Crypto assets: new rules to stop illicit flows in the European Union

Members of the European Parliament from the Committee on Economic and Monetary Affairs and the Committee on Civil Liberties adopted their position on draft legislation strengthening European Union rules against money laundering and terrorist financing. Under the new requirements, all transfers of crypto-assets would have to include information on the source of the asset and its beneficiary, information that is to be made available to the competent authorities. The rules would also cover transactions from unhosted wallets. [Read more]

Upcoming events I’m affiliated with:

The CBDC Think Tank is hosting several webinars over the next month:

Satoshi Capital Advisors is hosting a virtual workshop on wholesale CBDC, stablecoins and digital capital markets on May 24 (starting at 08:00 EST). [Register here with the passcode: CBDC]

Kiffmeister’s #Fintech Daily Digest (20220401)

~ kiffmeister

Small Digital Euro Payments Won’t Need Laundering Checks, ECB Official Says

European Central Bank (ECB) Executive Board member Fabio Panetta said that, although a fully anonymous digital euro is not a viable option from a public policy perspective, “a greater degree of privacy could be considered for lower-value online and offline payments… which are usually low risk in terms of money laundering, terrorism financing and violations of relevant EU law”. The ECB is “therefore exploring an offline functionality whereby holdings, balances and transaction amounts would not be known to anyone but the user [but] these balances and private offline payments would have an upper limit”. [Read more]

SEC Rejects Spot Bitcoin ETF Application From Ark 21Shares

The U.S. Securities and Exchange Commission (SEC) has rejected an application for a spot bitcoin exchange-traded fund (ETF) from Ark 21Shares (filed on behalf of the Cboe BZX Exchange), citing a lack of investor protections. [Hit repeat!] “The Commission concludes that BZX has not… demonstrate[d] that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), and in particular, the requirement that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest’.” The SEC has repeatedly rejected spot bitcoin ETF proposals, but showing a clear preference for bitcoin ETF’s that trade bitcoin futures. [Read more]

Companies Must Account for Their Crypto Risks, Says SEC

The U.S. SEC published guidance about how companies should account for the custody of crypto-assets on behalf of clients. Affected companies will have to disclosure the nature and amount of crypto-assets that they hold for their users, with separate disclosure for each significant crypto-asset and any vulnerabilities the business has due to any concentration in its users’ crypto holdings. Also, an estimate of potential liabilities from safeguarding failures may need to be included with the initial recognition of those crypto holdings, as well as later accounting of their fair value. Caitlin Long tweeted that this “brazenly violates ‘same activity/same regulation’ principle” because such treatment isn’t required of securities custodians. [Read more]

Upcoming events I’m affiliated with:

The CBDC Think Tank is hosting several webinars over the next month:

Satoshi Capital Advisors is hosting a virtual workshop on wholesale CBDC, stablecoins and digital capital markets on May 24 (starting at 08:00 EST). [Register here with the passcode: CBDC]