US Fed: CBDC a ‘very high priority’ to combat bad private sector money
The United States Federal Reserve needs its own digital currency to protect against a possible overnight proliferation of stablecoin technology, says Fed chairman Jerome Powell. Cryptocurrency stablecoins could become systemically important overnight, says United States Federal Reserve Chairman Jerome Powell, and that’s why the Fed is determined to get its own central bank digital currency right.CBDCs are the banking industry’s answer to cryptocurrency stablecoins. While they are often hosted on the blockchain, they share little in the way of philosophical parity with their decentralized....
Related News
"The Federal Reserve would only pursue a CBDC in the context of broad public and cross-governmental support," said the recently published paper. The U.S. Federal Reserve is opening comments to the public after releasing a discussion paper on the pros and cons of a potential central bank digital currency.In a publication released Thursday titled “Money and Payments: The U.S. Dollar in the Age of Digital Transformation”, the Fed said it would likely not be authorized to issue digital wallets or accounts capable of holding a U.S. central bank digital currency, or CBDC, but rather leave such....
The Bank of France processed $2.4 million worth of fund units using a CBDC in December as part of ongoing experiments into blockchain and stablecoin technology. The Bank of France successfully piloted a central bank digital currency — or CBDC — experiment in December, using the technology to settle monetary fund shares on a private blockchain platform for the first time.As announced by Le Banque de France on Jan. 19, the pilot commenced on Dec. 17, and saw 2 million euros ($2.4 million) worth of simulated shares purchased and sold by investors using a CBDC. The pilot took place with....
A former Bank of Japan official is concerned about a digital yen triggering massive outflows from private bank deposits. Hiromi Yamaoka, former head of the payment and settlement systems department at the Bank of Japan, said that the country will likely need several years before it can issue a central bank digital currency.In a Nov. 17 Reuters interview, Yamaoka explained that the BoJ is concerned about a CBDC potentially triggering massive outflows from private bank deposits.Yamaoka, who now chairs a group of banks looking at building a common settlement infrastructure for digital....
The Hong Kong Monetary Authority and the BIS Innovation Hub cooperated on a unique CBDC design that reflects the realities of money issuing in the special administrative region. The Hong Kong Monetary Authority presented its completed Aurum retail central bank digital currency (CBDC) prototype on Oct. 21. The system, developed in conjunction with the Bank for International Settlements (BIS) Innovation Hub, has a unique structure that reflects the intricacies of the existing system for issuing money in Hong Kong.Aurum consists of a wholesale interbank system and retail e-wallet. The....
The Retail CBDC will be tested in a limited retail environment with 10,000 participants and three major banks. On top of its wholesale central bank digital currency (CBDC) projects and proof-of-concept Retail CBDC testing with corporates, the Bank of Thailand (BOT) will extend the scope of CBDC development aimed at retail to a pilot phase. A possible real-life application of the "Retail CBDC" will be conducted inside the private sector on a limited scale. As the Aug. 5 announcement on the official page of the BOT goes:“The BOT will assess the benefits and associated risks from the Pilot to....