The Central Bank of The Bahamas is to launch its Sand Dollar central bank digital currency (CBDC) across the entire archipelago in October, after piloting the new e-currency on the islands of Exuma and Abaco... More
Asia is leading the way in the use and development of digital currencies and remains the world’s largest digital payments market, with China alone accounting for more than half of the total transaction value worldwide, according to a new research paper published by Singapore’s DBS Bank... More
Countries with digitised and innovative economies are more likely to be developing central bank digital currency (CBDC) projects while those with a larger informal economy are tending to focus on creating retail CBDCs, a working paper published by the Bank for International Settlements (BIS) reports... More
The Banco Central do Brasil has formed a study group to evaluate the benefits and challenges of issuing a central bank digital currency (CBDC) in the country... More
LG CNS is piloting a new payments solution that combines face recognition, a blockchain-based digital currency and AI technology to let shoppers enter an unmanned store, shop and check out — without needing to come into close contact with either employees or POS equipment... More
Starbucks, McDonald’s among 19 firms to test China’s digital yuan — Coindesk — “Starbucks and McDonald’s are reportedly among 19 restaurants and retail shops that will be involved in testing China’s central bank digital currency in the country’s Xiong’An new district, a local news outlet reported on Thursday, citing a government document. The move signals China’s wider efforts to test the digital currency project, with state-owned commercial banks already developing wallet applications for the digital yuan, also known as DC/EP.”
Facebook-backed Libra cryptocurrency project is scaled back — The New York Times — “The Libra project will now focus on creating a more traditional payment network in which coins will be tied to a local currency, somewhat like the digital dollars in a PayPal account. While Libra will also have a coin backed by multiple national currencies, which was the focus of the initial design documents, that will be less prominent.”
An analysis of the global payments industry by McKinsey & Company predicts that Covid-19 will result in a loss of revenues of between US$165bn and US$210bn in 2020 — and sets out “ten fundamental changes to the payments ecosystem that will help all of us find a new normal.” More
The digitalization of payments and currency: Some issues for consideration — The Federal Reserve — “Given the dollar’s important role, it is essential that we remain on the frontier of research and policy development regarding CBDC [Central Bank Digital Currency]. Like other central banks, we are conducting research and experimentation related to distributed ledger technologies and their potential use case for digital currencies, including the potential for a CBDC. We are collaborating with other central banks as we advance our understanding of central bank digital currencies.”
The World Economic Forum has released a Policy-Maker Toolkit for central bank digital currencies (CBDCs), designed “to help central banks evaluate, design and potentially deploy CBDC”... More
The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Sveriges Riksbank and the Swiss National Bank, together with the Bank for International Settlements (BIS), are to work together “to assess potential cases for central bank digital currencies”... More
The Central Bank of The Bahamas has begun pilot testing a digital version of the Bahamian dollar that uses QR codes to let users make payments and transfer funds using their smartphones... More
China’s central bank likely to pilot digital currency in cities of Shenzhen and Suzhou — Coindesk — “The People’s Bank of China is said to be preparing to launch pilots for its digital currency in at least two major cities. The tests are likely to include the participation of state-owned partners. These comprise the ‘Big Four’ commercial banks — the Industrial and Commercial Bank of China, Bank of China, China Construction Bank and the Agricultural Bank of China — and three telcos: China Telecom, China Mobile and China Unicom.”
MUFG digital currency finds second life as mobile payment — Nikkei Asian Review — “Users will convert funds from their bank accounts or elsewhere into the digital currency using a smartphone app. The service will use this currency in transactions, which will be handled through QR codes. Money sent via the app can be moved back into an account as cash, allowing for transfers between individuals.”
Visa, Mastercard, others reconsider involvement in Facebook’s Libra network — The Wall Street Journal — “Visa Inc, Mastercard Inc and other financial partners that signed on to help build and maintain the Libra payments network are reconsidering their involvement following a backlash from US and European government officials, according to people familiar with the matter.”
China has ‘no timetable’ for the launch of its digital currency, the governor of the country’s central bank has revealed... More
China’s central bank has released further details of its forthcoming digital currency — including the news that citizens will be able to use it to exchange money and make payments in an NFC-like manner... More
The People’s Bank of China (PBOC) is preparing to launch a central bank-backed digital currency on 11 November, according to a Forbes report — and is to kickstart usage by distributing it to UnionPay, Tencent, Alibaba and several Chinese banks in time for consumers to use it on Singles Day, the country’s busiest shopping day... More
China’s central bank has completed a five-year project to develop a digital currency that can be processed at a speed which is fast enough for it to be used in a retail environment, a senior People’s Bank of China (PBOC) official has revealed... More
Coming in 2020: Calibra — Facebook — “Today we’re sharing plans for Calibra, a newly formed Facebook subsidiary whose goal is to provide financial services that will let people access and participate in the Libra network. The first product Calibra will introduce is a digital wallet for Libra, a new global currency powered by blockchain technology. The wallet will be available in Messenger, WhatsApp and as a standalone app — and we expect to launch in 2020.”