Janet Yellen calls on lawmakers to develop a consistent federal framework for stablecoins, Hester Peirce urges to allow room for failure and more.
A central bank digital currency, or CBDC, is a digital version of a region’s fiat currency, put out by the region’s monetary authority. CBDCs gained a significant spotlight in 2020, with numerous countries expressing interest in their own versions of the asset type. Some countries pushed faster than others toward their own native digital currency. China, for example, moved quickly toward the prospect of its own CBDC, called the digital yuan.
The Bahamas burst on the central bank digital currency market in 2020 with the first CBDC. Called the Sand Dollar, the country’s CBDC is a national digital currency for the region, holding the same value as the Bahamian dollar. CBDCs differ from crypto-native stablecoins put out by crypto industry entities. Such stablecoins aim to track the value of underlying assets, such as the U.S. dollar, although the stablecoins themselves are not official regional currencies and are often overseen by companies.
Commenting on the recent market volatility, Fabio Panetta also said stablecoins were still “vulnerable to runs,” just as investing in cryptocurrencies carried certain risks.4335
Does government-issued digital money pose an existential threat to cryptocurrencies? Probably not, but stablecoin usage could narrow.2358
The ECB drops another working paper on the digital euro, causing more outrage from Europeans opposing a central bank digital currency.4528
Jonas Gross spoke with Cointelegraph about the digital euro’s risks for private banks and the goals of the ECB.1230
The effort will include issuing guidance for NFTs and ICOs, expanding infrastructure and supporting CBDC research.2228
Chile’s planned start to its digital peso rollout in early 2022 has been held back while its central bank conducts more analysis to inform a new report by the end of the year.2248
Stakeholders believe that the digital shekel would boost competition, but remain divided on the matter of privacy.2001
The report points out stablecoin’s possible low stress resistance and overuse in leveraged cyptocurrency trading, reiterates its position on CBDC.2888
Nigeria’s central bank has upgraded its eNaira to steer the country away from crypto even after a UN report stated that restrictions on digital currencies are stifling the nation’s fintech sector.3707
In addition to recommending the financial education of the public in the Bahamas, the IMF hinted at the importance of a “robust supervisory and regulatory framework” for digital assets.2837
“Globally, more than two-thirds of central banks consider that they are likely to or might possibly issue a retail CBDC in either the short- or medium-term,” said the BIS.2343
- 'Regulations are in place to help crypto businesses understand operations,' says The Bahamas PM Philip Davis
The Bahamas Prime Minister Philip Davis shared his plans to welcome crypto businesses to the region during SALT’s Crypto Bahamas.1950
Transactions via the EU’s prospective CBDC could be transparent to intermediaries, as any non-crypto digital transactions are.1722
The former Federal Reserve official once again expressed his opposition to a United States central bank digital currency in a Tuesday podcast.1611