Hong Kong proposes licensing for fiat-referenced stablecoins
The Financial Services and the Treasury Bureau and Hong Kong Monetary Authority (HKMA) published a consultation paper outlining their proposal to regulate fiat-referenced stablecoins within the region. Firms actively marketing the issuance of such stablecoins to the public in Hong Kong will be required to obtain a specific local license from the HKMA. Such issuers will have to ensure that the value of the high-quality highly-liquid reserve assets backing the stablecoins is at least equal to the par value of the stablecoins in circulation at all times, to ensure that users will be able to redeem them for fiat currency on demand. [Read more at the HKMA]
Bank of England and HM Treasury form CBDC Academic Advisory Group
The Bank of England (BOE) and HM Treasury (HMT) formed a central bank digital currency (CBDC) Academic Advisory Group (AAG) of experts from a range of disciplines related to the BOE/HMT work on the digital pound. The AAG will serve as a platform for knowledge exchange and research collaboration during the design phase, and will include academics from a range of disciplines including monetary policy, finance, competition economics, industrial organization, behavioral science, law, innovation theory, marketing, and business. [Read more at the BOE]
China unveils digital yuan wallet machine for foreign passport holders
China has launched its first automated digital yuan wallet-opening machine for holders of overseas passports, Hong Kong and Macau ID cards, and other identity verification documents. The machine allows users to exchange foreign currency banknotes for digital yuan on an automatically opened hard wallet. Existing digital yuan wallet holders can also use the machine to make overseas cash-powered top-ups. Visitors to China had been able to buy digital yuan with overseas payment cards via the central bank’s official CBDC mobile app. [Read more at 21Jingji.com]
China mandates CBDC wallets for game coin trading
China’s National Press and Publication Administration (NPPA) introduced new draft regulations for online video games, zeroing in on players’ spending amid a broader crackdown on the sector. Among the proposed rules was a requirement that game coin trading services use real-name digital yuan wallets. Furthermore, services that allow players to exchange game coins for fiat would be banned. [Read more at the NPPA]
FYI here are some of my upcoming speaking engagements:
– Digital Euro Conference 2024 (Frankfurt on February 29)[Register here]
*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).
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