What's New in Payments

Turkey unveils plans for a central bank-issued digital currency

Turkey puts central bank digital currency on new economic roadmap — Coin Telegraph — “The government of Turkey has included a central bank-issued digital currency in its 2019–2023 economic roadmap published on July 9… In addition to a central bank digital currency, the development plan lists blockchain adoption in the operations of transportation and customs.”


What's New in Payments

China’s central bank to develop a digital currency

Central bank unveils plan on digital currency — China Daily — “The People’s Bank of China, the central bank, is organising market-oriented institutions to jointly research and develop a central bank digital currency and the programme has been approved by the State Council, the country’s Cabinet, Wang Xin, director of the PBOC Research Bureau, said at a seminar at Peking University.”


What's New in Payments

Saudi Arabia and UAE to develop joint digital currency

UAE and Saudi Arabia announce launch of common digital currency ‘Aber’ — Emirates 24/7 — “The United Arab Emirates Central Bank (UAECB) and the Saudi Arabian Monetary Authority (SAMA) today announced in a joint statement the launch of the common digital currency project ‘Aber’, which will be used in financial settlements between the two countries through blockchains and distributed ledgers technologies.”


What's New in Payments

IMF report finds digital currencies are gaining ground with central bankers

At least 15 central banks are serious about getting into digital currency — MIT Technology Review — “There are two main reasons for the trend, according to the report. First, new forms of digital money are ‘shrinking the role of cash’. Besides that, some central banks are interested in using the technology to reach the hundreds of millions of people who do not have a bank account or access to modern financial services. Finally, most central banks see the potential to reduce costs by replacing physical banknotes with digital ones.”


What's New in Payments

Korea’s central bank ‘opposes’ the idea of a digital currency

BOK will not issue digital money — Korea Times — “The Bank of Korea (BOK), the country’s central bank, said Monday it opposes the idea of central bank digital currency (CBDC)… The bank is worrying over concerns that such a sudden launch of the CBDC will cost society a lot and cause a moral hazard. Also, issuing CBDC could destabilize the market order because digital currencies don’t currently constitute money.”


What's New in Payments

Central bank patents point to plans for a hybrid digital currency in China

PBOC filings reveal big picture for planned digital currency — Coindesk — “The ultimate goal, according to PBOC’s patents, is to ‘break the silo between blockchain-based cryptocurrency and the existing monetary system’ so that the digital currency can sport cryptocurrency-like features, while being widely used in the existing financial structure.”


What's New in Payments

Central Bank of Bahamas plans digital currency pilot

Bahamas to introduce digital currency — Jamaica Observer — “The production of a modern fully digital payment service is the way forward for this era of governance… A digital Bahamian currency is especially important for the many family islands as they have seen many commercial banks downsize and pull out of their communities, leaving them without banking services.”



What's New in Payments

China’s central bank sets out digital currency plans

PBOC official pushes for centralized state digital currency — Coindesk — “Unlike most cryptocurrencies, the CBDC [Central Bank Digital Currency] might not operate via a peer-to-peer mechanism, which brings the key features of anonymity and untraceability… Transactions using CBDC will be visible to the central bank, which would function as a third party to bring oversight on potential money laundering and illegal financing.”


What's New in Payments

Bank of England puts a hold on research into issuing its own digital currency

Bank halts crypto-currency plans over stability fears — FT Adviser — “The Bank of England (BoE) has been researching the possibility of launching its own digital currency to rival bitcoin, but fears about the impact on the wider financial system means it has no ‘current plans’ to do so… If the central bank launched a digital currency of its own, it worried consumers would stop using commercial bank accounts and, instead, have a bank account with the Bank of England, and choose to use digital technology to purchase goods and services over paper money.”


What's New in Payments

Israel considers issuing a digital currency to speed up payments

Israel central bank mulls issuing digital currency for faster payments — Reuters — “The Bank of Israel is examining issuing digital currency as a means of creating a faster payments system as well as reducing the amount of cash in the economy, a central bank source said… The source, who spoke on condition of anonymity, also said the government was ready to legislate or include the issue in its 2019 budget and economic package if the central bank gave the green light.”


What's New in Payments

Australia’s central bank explores the issue of electronic banknotes

An eAUD? — Reserve Bank of Australia — “An electronic form of banknotes could coexist with the electronic payment systems operated by the banks, although the case for this new form of money is not yet established… The issuing authority could issue electronic currency in the form of files or ‘tokens’. These tokens could be stored in digital wallets, provided by financial institutions and others. These tokens could then be used for payments in a similar way that physical banknotes are used today.”


What's New in Payments

Bank of Canada reports on the potential of digital currencies

Central Bank Digital Currency: Motivations and implications — Bank of Canada — “This paper addresses the question of whether a central bank should issue digital currency that could be used by the general public. It begins by discussing the possible motivations for a central bank to issue a digital currency. The paper then sets out a benchmark central bank digital currency (CBDC) with features that are similar to cash. The implications of such a digital currency are explored, focusing on central bank seigniorage, monetary policy, the banking system and financial stability, and payments.”


What's New in Payments

Central bank begins digital currency pilot in Uruguay

Uruguay to launch digital currency, ‘not Bitcoin’ it stresses — Bitcoin.com — “Uruguay’s Central Bank (BCU) formally presented rollout of its pioneering digitization of the Uruguayan peso on 3 November 2017… The plan ‘consists of a test with 10,000 mobile phone users of Antel,’ the release notes, ‘which will last for six months’ and be international… Registered users will be able to interact with merchants as well as peer-to-peer in money exchanges.”


What's New in Payments

Russia to issue state-backed CryptoRuble digital currency

Russia issuing ‘CryptoRuble’ — Coin Telegraph — “Russian President Vladimir Putin has officially stated that Russia will issue its own ‘CryptoRuble’ at a closed door meeting in Moscow, according to local news sources. The news broke through Minister of Communications Nikolay Nikiforov. According to the official, the state issued cryptocurrency cannot be mined and will be issued and controlled and maintained only by the authorities.”


What's New in Payments

Germany’s central bank reports on potential of blockchain for payments

Bundesbank sees benefits in blockchain technology — Deutsche Bundesbank — “The Bundesbank’s experts see little prospect of DLT [distributed ledger technology] being put to widespread use in the field of individual and retail payments given the current state of the art… They see more potential for DLT in payments beyond the European currency area… There is currently no realistic prospect of central bank-issued digital currency being rolled out in the foreseeable future.”


What's New in Payments

Bank of England examines the technical requirements of central bank-issued digital currencies

Beyond blockchain: What are the technology requirements for a central bank digital currency? — Bank Underground — “What type of technology would you use if you wanted to create a central bank digital currency (CBDC) ie a national currency denominated, electronic, liability of the central bank? It is often assumed that blockchain, or distributed ledger technology (DLT), would be required; but although this could have some benefits (as well as challenges), it may not be necessary.”


Feed for stories about Central bank digital currency (CBDC).