UK Regulated Liability Network to experiment with tokenized deposits
The UK Regulated Liability Network (RLN) will experiment with a retail digital pound backed by tokenized bank deposits. Earlier in 2023, the RLN performed similar trials in the US involving several banks, Mastercard and the NY Fed. The RLN has separate partitions for the central bank and each bank, with interbank payments being settled on the central bank partition. The experiments will explore how the tokenized deposits could sit alongside a retail CBDC, how RLN could accommodate both forms of money on a single platform, how the functional equivalence of all retail digital money could be ensured, and if the RLN can provide a more effective platform for innovation. [Read more at the RLN]
Macau establishes digital currency as legal tender
A new law regulating Macau’s currency issuance has come into effect, giving digital currency the same legal status as traditional money in the Chinese special administrative region. The new legal framework, proposed by the Macau government, became effective on September 1, 2013 after being approved by the SAR’s legislative assembly in June. However, there is no timeline for the launch of a digital pataca central bank digital currency (CBDC). [Read more at Central Banking]
LSE Group draws up plans for blockchain-based digital assets business
The London Stock Exchange Group (LSEG) has reportedly drawn up plans for a new digital markets business, saying this will make it the first major exchange to offer extensive trading of traditional financial assets on blockchain technology. The exchange is “definitely not building anything around crypto-assets” but was looking to use the technology that underpins popular tokens such as bitcoin to improve the efficiency of buying, selling and holding traditional assets. LSEG, which is considering using a separate legal entity for the digital markets business, hopes to have the first market up and running within the next year, subject to regulatory approval. [Read more at the FT]
*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.
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