Posts in category

Central Banking


Barbados-based blockchain startup Bitt is partnering with the Centrale Bank van Curaçao en Sint Maarten (CBCS) to look into issuing a central bank-backed digital currency for the two nations. Bitt, a portfolio company of Overstock’s Medici Ventures, said Monday that it has signed a memorandum of understanding (MOU) with the central bank for the Dutch Caribbean …

0 36

Central bank-issued cryptocurrency can potentially bring economic welfare gains for Canada and the U.S., according to a central bank researcher. In a working paper published Thursday, the Bank of Canada’s S. Mohammad R. Davoodalhosseini states that introducing a central bank digital currency (CBDC) “can lead to an increase of up to 0.64 percent in consumption for Canada …

0 38

Venezuela is replacing its national currency, the bolivar, with a new one that will reportedly be tied to its controversial “petro” token. The new bolívar soberano (or sovereign bolivar) is to enter use in the country next month, according to an announcement on Wednesday from the country’s president, Nicolas Maduro. As well as stating that the sovereign bolivar …

0 36

Iran may soon issue its own cryptocurrency as a way to bypass new economic sanctions enacted by U.S. President Donald Trump. A plan to develop an “indigenous” cryptocurrency is currently on the agenda of the government’s Science and Technology Department, according to Iran’s official news outlet PressTV. Alireza Daliri, the department’s deputy head in charge of investment …

0 36

The Bank of England’s updated payments system will be compatible with blockchain-based financial technology forms, Reuters reported Monday. The announcement is the latest in the BoE’s ongoing efforts to modernize its Real-Time Gross Settlement system (RTGS), which is essential for banking and trading in Britain and handles transactions worth around ‎£500 billion annually, or almost …

0 37

G20 member countries are now looking at an October deadline for reviewing a global anti-money laundering (AML) standard on cryptocurrency, document shows. According to a statement issued on Sunday, finance ministers and central bank governors of the G20 member countries hosted a meeting during the weekend and reiterated their position on “vigilant” monitoring over cryptocurrency. …

0 37

Jerome Powell, chairman of the U.S. Federal Reserve, had some harsh words for cryptocurrencies during an appearance before the U.S. Congress. Speaking to the House Financial Services Committee, the head of U.S. central bank said Wednesday that cryptocurrencies have no “intrinsic value” and presented severe risks to investors, as CNBC reported. Part of his concerns …

0 36

The director of the Commodity Futures Trading Commission (CFTC)’s fintech initiative cautioned against what he called “hasty regulatory pronouncements” during a Congressional hearing on Wednesday. The remarks from Daniel Gorfine, director of LabCFTC, were directed toward members of the U.S. House Committee on Agriculture which, as reported by CoinDesk, sought testimony on the issue of cryptocurrencies …

0 38

Last week, Agustin Carstens, the head of the Bank of International Settlements (BIS), widely considered the central bank of central banks – told cryptocurrency makers to “stop trying to create money.” And the crypto community promptly had a field day with those remarks. The BIS head has, to date, adopted a largely hostile tone toward …

0 36

“The analysis shows that the concept of a digital currency is a fallacy.” Using digital currencies synonymously with the term cryptocurrencies, a paper published by the Bank of Finland and written by one of its advisors argues that cryptocurrencies aren’t real forms of money. According to Aleksi Grym, the central bank’s digitalization advisor, cryptocurrencies are …

0 37

Romania has drafted an emergency ordinance for ICO issuers, a local news outlet reported Thursday. The draft, which was released by the Romanian Ministry of Finance, states that groups hoping to launch token sales must have their tax and legal records verified. Following that, each member of the issuing organization is required to be approved …

0 39

Distributed ledger startup Ripple is facing another class-action lawsuit tied to the legal classification of the XRP cryptocurrency. A lawsuit filed in the Superior Court of California (San Mateo County) claims that Ripple “created the XRP token and then used sales of the tokens in order to fund its operations and the development of the XRP …

0 38

India’s highest court has declined to end a ban enacted by the national central bank that bars the country’s crypto exchanges from doing business with regulated financial firms. Bloomberg reported Tuesday that the Indian Supreme Court, led by Chief Justice Dipak Misra, said that the Reserve Bank of India’s (RBI) prohibition on providing services to crypto-related …

0 37

Cryptocurrencies will not challenge the economic power of central banks, the European Parliament said last week. In the latest Monetary Dialogue report issued on June 26, the European Parliament’s Committee on Economic and Monetary Affairs said that while cryptocurrencies have made financial transactions “relatively safe, transparent, and fast,” they pose no threat to sovereign currencies …

0 38

The Digital Currency Research Lab at the People’s Bank of China has filed more than 40 patent applications so far – all as part of an aim to create a digital currency combining the core features of cryptocurrency and the existing monetary system. Data from China’s State Intellectual Property Office (SIPO) revealed two new patent …

0 38

Australia and New Zealand have both just ruled out the option of pursuing a central bank digital currency (CBDCs) – at least for now. In a speech on Tuesday, Tony Richards, head of the payments policy department of the Reserve Bank of Australia (RBA), said while his institution feels there is little demand for a CBDC, should the …

0 37

Sheila Bair, a former chairperson of the Federal Deposit Insurance Corporation (FDIC), believes the U.S. should create a wholly new regulatory framework for cryptocurrencies. Speaking at CB Insights’ Future of Fintech conference on Thursday, the noted Fedcoin supporter – that is, a cryptocurrency operated by the U.S. central bank – addressed the challenges that regulators face …

0 36

The U.S. government needs to find the “sweet spot” in its oversight of the cryptocurrency ecosystem, Mick Mulvaney, acting director of the Consumer Financial Protection Bureau, said on Wednesday. Speaking at the Future of Fintech conference hosted by research and analysis firm CB Insights, Mulvaney, who also heads the Office of Management and Budget, touted his …

0 37

Brazil could soon have a new blockchain platform to ensure the authenticity of information exchanged between financial authorities. Brazil’s central bank, Banco Central do Brasil (BCB), announced Tuesday that it has built the platform in order to allow secure data sharing between itself and other domestic financial regulators, such as the country’s Superintendency of Private Insurance …

0 37

Michael J. Casey is the chairman of CoinDesk’s advisory board and a senior advisor for blockchain research at MIT’s Digital Currency Initiative. The following article originally appeared in CoinDesk Weekly, a custom-curated newsletter delivered every Sunday exclusively to our subscribers. Whether bitcoin or its imitators eventually achieve global ubiquity, they have already achieved success in one …

0 36