Category: Climate

Kiffmeister’s #Fintech Daily Digest (20240709)

~ kiffmeister

Potential climate impact of retail CBDC models

Sveriges Riksbank published a paper that analyses central bank digital currency (CBDC) electricity consumption compared to existing retail payment services. Findings indicate that the energy use per transaction of an e-krona is comparable to that of card payments. However, there are significant differences depending on whether the design of the infrastructure for the e-krona is centralized or decentralized, where a centralized solution tend to be less energy consuming than a decentralized solution. Algorand’s proof-of-stake public-permissioned network was chosen to represent the decentralized platform, and Hedera’s private-permissioned network the centralized platform, and the transactions volumes were assumed to be similar to that of cash-based transactions. [Read more at the Riskbank]

Visa showcases tokenized deposits with HSBC, Hang Seng Bank (Ledger Insights)

Visa published a report on its tokenized deposit trial with HSBC and Hang Seng Bank, which involved (i) settling high value real estate transaction and (ii) settling Visa card payments. In Hong Kong there are restrictions on faster payment amounts, so the real estate transaction supported a high value instant payment with tokenized deposits. With tokenized deposits, when a payee transfers money to a recipient, the sending bank burns the tokens and the recipient bank mints them so they appear in the recipient’s wallet. Instant settlement is facilitated by wholesale CBDC, with the token and CBDC exchanges happening simultaneously, so there’s no settlement risk. [Read more at Visa]

Upcoming Speaking Engagements:

  • CBDC Conference, Istanbul, September 10-12. The conference will offer representatives of central banks, commercial banks, technology providers, policy makers and academics the perfect platform to learn about the latest CBDC developments, exchange ideas with experts and peers. [Find out more and register here][Central bank delegates may be eligible for free registration (email registration@cbdc-conference.com to find out more)]
  • Digital Currency Conference, London, September 23-24. The conference will bring together policymakers, regulators, and technology and innovation experts to network and discuss all aspects of digital currencies. And enter the KiffmeisterDCC code at registration to get a 20% discount! [Find out more and register here]

And 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 john@kiffmeister.com.

Kiffmeister’s #Fintech Daily Digest (08/21/2020)

~ kiffmeister
Apple Buys Startup to Turn iPhones Into Payment Terminals
Apple has acquired Mobeewave, a startup with technology that could transform iPhones into mobile payment terminals. Mobeewave’s technology lets shoppers tap their credit card or smartphone on another phone to process a payment. The system works with an app and doesn’t require hardware beyond a Near Field Communications, or NFC, chip, which iPhones have included since 2014. Samsung Electronics Co. partnered with Mobeewave last year to allow its phones to use the technology.

Crypto Assets of $50 Billion Moved From China in the Past Year
About $50 billion in cryptocurrency assets have left China in the past year, a possible indication that investors are dodging rules that limit how much capital they’re allowed to transfer from the nation, according to Chainalysis. Tether accounted for more than $18 billion of the outflows from East Asia in the period. Tether has become a U.S. dollar replacement for many people in China, with lots of Chinese businesses and merchants, especially those working overseas, now accepting Tether.

East Asia: Pro Traders and Stablecoins Drive World’s Biggest Cryptocurrency Market
East Asia is the world’s largest cryptocurrency market, accounting for 31% transacted in the last 12 months. East Asia-based addresses received $107 billion worth in the last 12 months, which is 77% more than Western Europe, the second-highest receiving region. Much of this can be attributed to the region’s stranglehold on mining activity. China alone controls 65% of Bitcoin’s global hashrate, which means that the majority of all newly-mined Bitcoin starts out at Asia-based addresses, giving the market a massive liquidity boost.

What’s Behind the Meteoric Rise of Chainlink?
Chainlink’s LINK token has experienced a meteoric rise this year, becoming a top-five crypto asset by market capitalization. It acts as a bridge between cryptocurrency smart contracts and off-chain resources like data feeds, various web APIs, and traditional bank account payments. Chainlink has been making partnership and integration announcements nonstop throughout the year, although adversity is no stranger to its path.

Farmers Could Soon Be Hedging Their Risks With Decentralized Weather Data
Arbol, a platform that allows farmers to hedge weather risks, is integrating Chainlink data oracles. With blockchain, settlements and payouts can be instant, whereas in the centralized world, participants may have to wait weeks, if not months. Farmers can hedge against various adverse weather conditions having a negative impact on their crops. They can buy a hedge — for example, if a temperature in their region reaches a critical level, which will trigger an automatic payout. By adding Chainlink’s oracalized weather data feeds, the company’s platform has become more decentralized and resilient.

What Is Ethereum 2.0?
Ethereum 2.0 or ETH2 or Serenity  is the evolution of Ethereum network into the next phase for the performance improvement of Ethereum. The main aspect in this upgrade is the shift of Ethereum’s consensus algorithm from Proof of Work (PoW) to Proof of Stake ( PoS). This will result in the improvement of security, usability and scalability of the ethereum network as a whole. The upgrade will be live in multiple phases, starting with Phase 0 in this year of 2020.

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