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Tag: centralbanks

Central Banks Test CBDC as ‘Multiple Assets and Currencies’ Coming For Them

Source: Adobe/Сергей Шиманович Competing systems for settlement of “multiple assets and currencies” may emerge, and it is the job of central banks to ensure the maintenance of “equitable access” to central bank-issued money, a new report from the Bank for International Settlements (BIS) has said.“In the future, multiple settlement platforms could emerge, with multiple assets and currencies,” the report said, and “central banks would want to ensure that equitable access to central bank money is…

BIS urges regulation of DeFi

The central bank of central banks is worried about “decentralized finance.”The Bank for International Settlements, an umbrella group for central banks, said in a report this week that it’s concerned there’s a “decentralization illusion” in DeFi.DeFi is a rapidly-growing part of the cryptocurrency market that promises to deliver traditional financial products like loans and savings accounts without involvement from regulated middlemen such as banks.But regulators are increasingly concerned about platforms offering DeFi services that may not be as “decentralized” as advertised.”What we found…

Financial watchdog calls for stricter rules for bond and DeFi markets

The Bank for International Settlements has called for tougher rules to stop bond funds from amplifying risks to financial market stability and has thrown its weight behind calls for tighter supervision of blockchain-based decentralised finance.The umbrella body for central banks around the world said in its latest quarterly review that action was needed after bond funds had been forced to sell assets “on an elevated scale” in March 2020. An abrupt and widespread rush to the exits from these funds added to coronavirus-induced volatility across fixed income markets that was…

BIS Sees ‘Important Role’ for DeFi, Pushes for Increased Regulation

Source: AdobeStock / doganmesut A new report from the Bank for International Settlements (BIS), sometimes called the central bank of central banks, has come to a somewhat unexpected conclusion that decentralized finance (DeFi) could play “an important role” in the traditional financial system – but warned about potential financial instability.According to the report, titled DeFi risks and the decentralisation illusion, DeFi could, with certain technical and regulatory improvements, become a much more important and…

Bank Indonesia Aims to Fight Bitcoin with Its CBDC (Report)

The central bank of Indonesia is willing to issue a digital form of its national currency as a way to “fight” private digital assets. The financial institution believes a CBDC would be more “credible” than bitcoin or the altcoins.
Indonesia and its CBDC Efforts
Bank Indonesia (BI) – the country’s central bank – displayed its intentions to launch a central bank digital currency (CBDC) earlier this year. In May, Governor Perry Warjiyo asserted that it is on its way without revealing a specific launch date.
Back then, BI noted that during the COVID-19 pandemic,…

Goldman Cuts GDP Forecast Due To Omicron, Setting The Stage For More Central Banks Stimulus

By Tyler Durden
It was less than a month ago when bank after bank triumphantly revealed their extremely optimistic year-ahead growth forecasts, in which chief economists trumpeted 2022 GDP expectations in the mid- to high-single digits despite knowing well that these numbers are completely unattainable (as a reminder, the reason the forward swap yield curve just inverted is because even the market now understands that Powell is hiking into an imminent recession). An example of this is the following Nov 8 blurb from Goldman’s Jan Hatzius:
Although the fastest pace of recovery now lies…

Does DeFi Put Your Portfolio at Risk?

As cryptocurrency prices continue to soar, decentralized finance (DeFi) is becoming more popular, as well.
DeFi is generally defined as the process of executing financial transactions without an intermediary, such as a central bank. Through the use of smart contracts, two individuals can transfer funds, lend or borrow money, and earn interest on loans without having to go through a financial institution.
Supporters of DeFi believe it could someday become mainstream, potentially removing the need for central banks and other financial institutions. Could that put your portfolio at…

China’s central bank proposes to monitor metaverse and NFTs

China’s crackdown on crypto is expanding into the metaverse and nonfungible tokens (NFT), an executive at the People’s Bank of China (PBoC) recently implied.Speaking at a national financial security summit, Gou Wenjun, director of the Anti-Money Laundering (AML) unit at the PBoC, pointed to the risks associated with leaving the new trends of the crypto ecosystem, such as NFTs and the metaverse, unregulated. He claimed that, while people would use said digital assets for privacy and wealth appreciation, they are also prone to be used for illicit purposes such as money laundering and tax…

Bitcoin Back on the Defensive as Moderna CEO Warns of Reduced Vaccine Efficacy, Exchange Inflows…

There is consensus in the market that policymakers would provide unlimited support to asset prices if the situation worsens, leading to lockdowns. However, that would push governments and central banks in a tough spot. With inflation already running hotter than expected globally, lockdowns and more stimulus could lead to stagflation, a period characterized by low growth and elevated price pressures. While bitcoin is widely perceived as a store of value asset, it remains vulnerable to weakness in growth-sensitive assets like stocks.

Fed Chair Jerome Powell Could ‘Slow Crypto Down’ in His Second Term, Warns Billionaire Mike…

Billionaire investor Mike Novogratz has cautioned that Federal Reserve Chairman Jerome Powell could slow down the crypto market in his second term in office. Commenting on his renomination, Novogratz said Powell could “act more like a central banker than a guy that wants to be reappointed.”
How Jerome Powell’s Second Term as Fed Chair Could Impact Crypto
Billionaire investor Mike Novogratz, CEO of Galaxy Digital, talked about the impact the renomination of Jerome Powell as the Federal Reserve chairman for another term could have on the crypto market on CNBC last week.
President…

NFT, Metaverse ‘Could Become Money-Laundering Tools’


Source: AdobeStock / dule964The Chinese central bank’s anti-money laundering chief has spoken out about non-fungible tokens (NFTs) and metaverse projects – suggesting that there may be a need to regulate these sectors in the same manner as it polices cryptoassets.In two crackdowns (one in September 2017 and the second in September this year), the central People’s Bank of China (PBoC) has effectively banned most forms of crypto trading and crypto exchanges targeting Chinese citizens based on the mainland.The bank and other government organs have also squashed the nascent Chinese NFT…

Deep Dive Into Decentralised Finance: Valuing DeFi Blockchains

Decentralised Finance (DeFi) is a system that allows financial products to appear on a public blockchain network which is not regulated by a central bank or intermediary. DeFi systems, majority of which are built on the Ethereum blockchain, aim to provide an autonomous and decentralised option for financial services that are otherwise regulated by banks and national or international administration. If you are serious about crypto investing, you must have a deep understanding of decentralised finance (DeFi). Simply put, DeFi is an umbrella term for financial applications powered by public…

Existing regulatory frameworks ‘constrained’ by DeFi characteristics

advertisement A senior official for France’s central bank said earlier this month that regulators in Europe need to more directly supervise decentralized finance (DeFi).
In a speech from November 19 that was published Sunday by the Bank of International Settlements, Denis Beau, first deputy governor of the Banque du France, primarily focused on the development of central bank digital currencies (CBDCs) and his institution’s pilot program in this area. France’s central bank is also a participant in the long-term project to potentially introduce a digital euro, an initiative being…

Why a Kiwi digital currency makes sense

Fintech Power Finance says the move to a NZ digital currency will be significant.There was, during the global rush by governments to help Covid-affected businesses survive, a problem which graphically showed why a digital money system controlled by central banks (not commercial banks) is a good idea.Power Finance CEO Dave Corbett says his fintech is “extremely supportive” of the Reserve Bank of New Zealand’s discussion paper on a central bank digital currency (CBDC) – and offers the example of aid to people during the pandemic.New Zealand and the US adopted different approaches. In the…

Tanzanian Central Bank Preparing for CBDC to Ensure Country Is Not Left Behind – Emerging Markets…

Florens Luoga, the governor of the Bank of Tanzania, said the apex bank has kickstarted preparations for a central bank digital currency. He said the bank was doing this to ensure Tanzania is not left behind as other countries adopt digital currencies.
Keeping Abreast With Developments on the Continent
The Bank of Tanzania (BOT) has started preparations for its digital currency to ensure the country is not left behind others in adopting central bank digital currencies (CBDC), a Bloomberg report has said.
The announcement follows reports that Zanzibar — an autonomous Tanzanian region…

Chinese central government wants to do ‘digital asset swaps’ as CBDC approaches

China’s policy-forming State Council has reported that it needs the country to launch Beijing-based digital asset trades to control the reception of its impending central bank digital currency (CBDC) project, the advanced yuan. The committee called upon monetary bodies to accelerate the pilots for the advanced yuan and asked commercial banks in the country to get ready for the up and coming beginning of exchanges with the People’s Bank of China (PBoC)- gave token. The capital has been told to take a gander at methods of making bourses for digital asset exchanging, “as part of…

CBDCs, an Apple Patent, and Gen Z: This Week’s Mobile ID Roundup

This week’s roundup of Mobile ID World’s top stories features a diverse mix of topics, with a couple of stories looking toward technologies of the future, and a couple of others focused on the youth of the present. Looking ahead, many in the financial sector see a big role in the future for Central Bank Digital Currencies. IDEMIA and ConsenSys are looking to get ahead of that trend through a collaboration on a new Secure Offline CBDC Payment Solution. Built on the Ethereum blockchain, the solution is aimed at ensuing that end users will be able to conduct CBDC transactions without…

‘Financial Inclusion’ — A Buzzword for Central Banks Who Secretly Despise Economic Freedom – Op-Ed…

The World Economic Forum (WEF) has released its latest report on “digital currency governance” this month, addressing stablecoins, cryptocurrencies, and “barriers to financial inclusion.” Like most central banks, regulators, think tanks, and politicians, the WEF publication gives lip service to the power of crypto, but never addresses the elephant in the room: instead of actual access to the utility cryptocurrencies already freely provide, the “unbanked” and impoverished individuals of the world are forced to use a co-opted, fiat 2.0.
‘Financial Inclusion’ and…

Tanzania reportedly makes plans to launch CBDC

The Bank of Tanzania is reportedly planning to introduce a central bank digital currency, or CBDC, for the African nation after neighboring countries announced similar initiatives.According to a Friday Bloomberg report, Bank of Tanzania Governor Florens Luoga said on Thursday that Tanzania was planning to follow Nigeria’s example in rolling out its own CBDC. Luoga reportedly said that the central bank had “already begun preparations” for a digital shilling, Tanzania’s currency since 1966. In preparing to launch a CBDC, the governor said Tanzania is also planning to expand research…

When Will They Become A Reality, And What Experts Think About Cbdc

Rising interest in cryptocurrencies has prompted central banks across the world to consider issuing their own digital currencies referred to as the Central Bank Digital Currency (CBDC). The Indian government recently said that Reserve Bank of India is working on its own digital currency.According to a 2021 survey by global banking think tank BIS, nearly 86 percent of the central banks surveyed were actively engaged in researching CBDC, 60 percent were testing the underlying technology and 14 percent were already in the pilot-project phase.CBDC is a digital banknote that individuals or…

UK has no plans for a wholesale CBDC, envisages banks enabling synthetic – Ledger Insights

Earlier this week, the UK House of Lords Economic Committee met about central bank digital currency (CBDC). Baroness Kramer asked whether the central bank was considering a wholesale CBDC that would not be available to consumers. The response is that the private sector will be able to achieve a similar result themselves.

Bank of England Governor Bailey and Deputy Governor Sir Jon Cunliffe both dismissed the option of a wholesale CBDC at a domestic level.

Bailey highlighted that banks have existing access to central bank money through its real time gross settlement (RTGS)…

Multiply your BUSD with Yield Farming

People are slowly moving away from fiat money and adopting cryptocurrency. Fiat is not a good option because it is easily counterfeited by central banks and printed unlimitedly. However, cryptocurrencies can’t be printed like fiat money, making it a better alternative to many people worrying about inflation.
The world is rapidly adopting blockchain technology. Defi tools are one of the most popular and successful platforms right now. BUSDMatrix.io is a Dapp based on Defi protocol that provides a high return on BUSD deposits. The return can be as high as 234%.
The product is a smart…

Chinese Central Gov’t Wants to Create ‘Digital Asset Exchanges’ as CBDC Nears

Source: AdobeStock / RHJChina’s policy-forming State Council has announced that it wants the nation to launch Beijing-based digital asset exchanges to power the adoption of its forthcoming central bank digital currency (CBDC) project, the digital yuan.The council called upon financial bodies to speed up the pilots for the digital yuan and asked commercial banks in the nation to prepare for the imminent start of transactions with the People’s Bank of China (PBoC)-issued token.Per a council document published today, as well as…

Central banks turn to a less racy alternative to counter crypto craze

A CBDC is a digital token that is a liability of the central bank — a banknote for the digital world. They would be different from the electronic money you see when you open up a banking app, which is a liability of the commercial bank.No wealthy country has yet issued a CBDC, but China is testing one, and dozens of central banks are frantically researching the topic.LoadingTheir reasons for doing so are varied. Some say we’ll need a digital equivalent of cash as people switch to electronic payments; some claim CBDCs will lift competition; while China’s digital yuan will give the…

Tucker: five years is too long for digital euro debate

The European Central Bank is dragging its feet with its five-year timeline for its decision on the digital euro, according to Paul Tucker, former deputy governor of the Bank of England. The ECB launched a two-year investigation phase in July 2021. Once completed, it will decide on whether or not to develop a digital euro, targeting deployment around 2026.Tucker said in an OMFIF keynote speech on 18 November: ‘These big questions don’t take five years. They take the right people having a handful of meetings over a few months, not five years.’Nevertheless, he praised the ECB’s…