FCA Approves Creation of UK Listed Market for Crypto ETNs
The U.K. Financial Conduct Authority (FCA) will not object to requests from Recognized Investment Exchanges (RIEs) to create a UK listed market segment for crypto-asset-backed Exchange Traded Notes (cETNs). These products will be available for professional investors, such as investment firms and credit institutions authorized or regulated to operate in financial markets only. However, the ban on the sale of cETNs (and crypto derivatives) to retail consumers remains in place. On the same day as the FCA announcement (March 11, 2024) the London Stock Exchange confirmed it will accept applications for the admission of Bitcoin and Ethereum cETNs in Q2 2024. [Read more at the FCA]
Logical architecture for a digital shekel system
The Bank of Israel (BoI) published a paper that examines architecture alternatives for implementing the two-tiered central bank digital currency (CBDC) business model. The paper focuses on the types of participants in the system, the functional distribution between the participants in providing an end-to-end solution, the distribution model to end users; and back-end layer—or system “engine”—managed by the central bank. It concludes that the optimal model is an indirect distribution model, in which the central bank distributes CBDC to the institutions that manage end user’s accounts, and those will support distribution to the end users. [Read more at the BoI]
BRICS working on blockchain-based digital payment system
The five-nation BRICS group Brazil, Russia, India, China and South Africa) is reportedly working on a blockchain-based digital payment system. Development work will also continue on the Contingent Reserve Arrangement, aimed at reducing reliance on U.S. dollars. [Read more at TASS]
*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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