Token Impersonates Chinese Digital Yuan as Official Launch Date Remains Unknown

With the official release date of digital yuan being kept in the dark, third-party actors have stepped in to impersonate the digital yuan officials, hoping to attract gullible investors. A recent press statement issued by a company called Yuan Pay Group mentions the release of “the e-Yuan”, a currency which allegedly allows the government of China to use smart contracts “to track assets and liabilities and to ensure that multiple loans are not taken over the same collateral.” “The circulation of the currency will be controlled by the state,” the…

Global Central Banking Think Tank Launches Digital Monetary Institute

The Official Monetary and Financial Institutions Forum (OMFIF), an independent global think tank for central banking and economic policy, announced the launch of its Digital Monetary Institute earlier this month. The Institute intends to build bridges between the worlds of digital currencies and traditional banking, and has a focus on payment instruments in wholesale and retail markets, and central bank digital currencies (CBDC). Central banks’ interest in digital currency is growing The OMFIF itself has already been publishing in-depth reports on digital currency and CBDCs since 2018. Regarding the key…

Digital Currencies Could Threaten US Geopolitical Power, Warns JPMorgan

“There is no country with more to lose from the disruptive potential of digital currency than the United States.” So goes the stark warning from analysts at the U.S.’ largest bank, JPMorgan Chase, in a new report covered by Bloomberg News on May 22. The report’s authors — among them, JPMorgan’s head of of U.S. interest-rate derivatives strategy Josh Younger and chief U.S. economist Michael Feroli — wrote: “This revolves primarily around U.S. dollar hegemony. Issuing the global reserve currency and the medium of exchange for international trade in commodities,…

Digital Euro Sees First Successful Test at the Bank of France

Per a May 20 announcement from Banque de France, France has become the first country to successfully trial a digital euro, operational on a blockchain, following a call for new technology to back such a development at the end of March The bank says it tested a sale of securities for central bank digital currency (CBDC) on May 14, signalling the beginning of more robust testing.  Wholesale rather than retail CBDC Though the bank’s announcement did not go into great detail, it did indicate that the current pilot program is…

Advances in Blockchain Drives Banks Toward Digital Currencies, Says Bank of Korea

South Korea’s central bank, the Bank of Korea, has conducted new research and analysis on the progress of central bank digital currencies — or CBDCs — around the world. The bank released its “Overseas CBDC Progress Report” on May 18, in which the institution analyzed the CBDC projects of 14 central banks. New tech is a catalysts for CBDC projects The bank found that recent advances in payment settlements, decentralized ledger technology and the sharp declines in cash use are the main factors driving central banks to research and develop…

Austrian Bank Raiffeisen Works on National Digital Currency Pilot

While global jurisdictions are progressing with central bank digital currencies, private institutions also work on digitizing national currencies. Raiffeisen Bank International (RBI), a major Austrian bank, is working on a new form of national currency tokenization using blockchain technology. RBI is extending its collaboration with Polish-British fintech firm, Billon, following a successful test of end-to-end digitized national currency transfers. RBI Coin is designed to speed up cross-border transactions As announced on May 18, RBI and Billon are working on initial stages of an RBI tokenization platform, currently dubbed RBI Coin.…

China’s Top Digital Bank to Foster DLT Innovation in Singapore’s Universities

China’s top digital bank, WeBank, has partnered with OpenNodes, a distributed ledger technology platform by Singapore’s Infocomm Media Development Authority. Through the new partnership, WeBank will provide the FISCO BCOS blockchain platform to Singaporean academics to innovate and build on. The initiative seeks to offer the blockchain platform as an “innovation playground“ to Singapore’s student communities to expedite development in the field of DLT. As a requirement of participation in the program, all innovations produced through the FISCO BCOS initiative are made available as open-source. The program hopes to stimulate research into blockchain…

Central Banks Uninterested in Digital Currency for Consumers, Says Visa Exec

Consumer-facing digital currency solutions will not be taken seriously by central banks, according to a Visa executive. Visa head of crypto Cuy Sheffield tweeted on May 18 that he does not believe central banks are interested in providing a central bank digital currency (CBDC) directly to consumers, stating: “If a central bank decides to offer a digital wallet directly to consumers then by default CBDC and the central bank would have to become a household brand but this approach seems unlikely to be taken seriously by most major central banks…

Blockchain as One of the Goals of Digital Government Strategy in Brazil

In a recent trend survey made by DMEXCO and presented at an event in Cologne, Germany, it was determined that although the world is currently suffering economically, the digital economy may greatly benefit after the COVID-19 pandemic. According to the survey, the COVID-19 crisis will accelerate the rhythm of digital transformation. One of the benefits of an advancing digital transformation is that it can lead to new solutions, unlocking inconceivable possibilities. This is especially true in digital services provided by governments, as the potential for innovation within the sector is…

How Digital Asset Funds Are Doing During the COVID-19 Crisis

The first thing to note is that despite the safe-haven characterization of crypto, the asset class itself in March appeared to be closely correlated with traditional public markets. Additionally, there were some notable crypto funds that went insolvent due to unhedged positions, a leverage mismatch or challenges with conducting proper risk management. Similar to December 2017, some funds were so beneath their high-water mark that the fund managers decided to wind down their fund, issue compulsory redemptions and stop activities. On average, crypto hedge funds were down among our clients,…