Without meaning to, Nigel Farage makes the best case for a CBDC
SODA’s Chris Ostrowski published an article that makes the case for digital money that will not be at the mercy of organizations that use our payment dependency for their own ends. If we don’t create some form of public digital money, in which a democratically elected government sets the framework (as they do with cash) on how it is used, then we will inevitably see more and more cases where people are made ‘non-persons’ like Nigel Farage recently was by Natwest. Chris concludes that central bank digital currency (CBDC) is the best guarantee for (cash like) rights, but this side of the story is hard to get out there, thanks to the ‘CBDC = government control’ narrative. [Read more at LinkedIn]
Distributed ledger technology based digital tokens: A legal perspective
The IMF published a paper that explores the similarities and differences between distributed ledger technology (DLT) based tokens and traditional legal instruments in commercial law, and how such tokens could offer superior solutions. However, to get there the law should recognize and define DLT and smart contracts to include them within existing legal mechanisms and recognize their effects in transferring tokens and generating rights for parties. In this regard, it is critical to ensure that there is a connection with valid legal effects between DLT and off-line assets and services. In addition, it is necessary to establish rules that allow the use of DLT as evidence, and resolve issues of unlawful transfer (loss, coercion, and fraud). Remedies must exist to protect the rights of legitimate token holders, but good faith acquirers for value must also be protected. [Read more at the IMF]
*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.
Kiffmeister’s central bank digital currency monthly monitor
Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only) if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.
The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).
Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]
WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]