Kiffmeister’s #Fintech Daily Digest (20220416)

European Commission receives more than 10,000 public comments amid digital euro consultation

The European Commission (EC) has received about 10,000 public comments so far on its call for evidence regarding a digital euro, which is to run from April 5 to June 14 and is aimed at getting feedback for the possible establishment and regulation of a digital currency as a new form of central bank money. During a similar period, the EC is also conducting a consultation targeted at relevant authorities and experts, to help policymakers consider issues including users’ needs and expectations for a digital euro, a digital euro’s role for the EU’s retail payments and digital economy, the application of money-laundering rules, privacy and data protection aspects and international payments. [Read more]

Monetary policy and financial stability implications of central bank digital currencies

This article, written by European Central Bank (ECB) staff, is a nice summary of recent research on the possible implications for financial stability and monetary policy of retail central bank digital currency (CBDC). It concludes that careful design will be crucial in maximizing the benefits of CBDCs while managing any unintended consequences. The article also identifies avenues for further research that could usefully inform future policy decisions on such currencies. [Read more]

Is Quantum Computing a Threat to Bitcoin?

The functional reality of a quantum computer cracking encrypted systems may only be five years away. The main threat is not whether quantum computers can ‘open up’ private key information… it’s more about the power of a quantum computer to replicate a private key without you knowing, undercutting trust in the entire signature process. Imperial College researchers have suggested a soft fork of the Bitcoin blockchain that would allow the “secure transition of funds to quantum-resistant wallets.” Others have proposed increasing the size of Bitcoin keys.  [Read more]

Circle Will Apply for US Bank Charter Soon, CEO Confirms

Circle, the issuer of USD stablecoin, is pushing forward with its plans to submit an application to operate as a U.S. crypto bank, CEO Jeremy Allaire told Bloomberg. If approved, the startup would be the fourth federally chartered crypto bank in the U.S. Allaire added that his company and the U.S. Office of the Comptroller of the Currency, which facilitates bank charters, have been talking about Circle’s digital asset banking prospects among other related topics such as the interoperability between blockchains. [Read more]

Upcoming events I’m affiliated with:

The CBDC Think Tank is hosting several webinars over the next month:

Satoshi Capital Advisors is hosting a virtual workshop on wholesale CBDC, stablecoins and digital capital markets on May 24 (starting at 08:00 EST). [Register here with the passcode: CBDC]