The newly launched merchant collection solution allows businesses automated settlement of e-CNY into their CNY bank deposit accounts.
New Zealand Is Not Exploring Crypto Regulation, but Recommends Increased Vigilance
After receiving 50 submissions as part of a consultation process, the Reserve Bank of New Zealand (RBNZ) has said it won’t propose a regulatory approach towards stablecoins and crypto-assets.
IMF Official Presents Blueprint for Cross-Border CBDCs
The international organization wants to help cut the cost of cross-border transactions, without abandoning compliance checks or capital controls.
Kenya Central Bank Takes Ambivalent Stance on Digital Currency
The allure of the CBDC is fading and issuing one “may not be a compelling priority,” the bank said.
Welcome, Crypto, to the Fiery Cauldron of U.S. Presidential Politics
Whether the crypto industry wants the spotlight or not, digital assets are among the earliest talking points in the 2024 U.S. presidential election, with the most prominent of the new candidates even invoking bitcoins in his campaign opener as evidence of President Joe Biden’s missteps.
European Commission To Present Regulatory Framework For Digital Euro In June
Fabio Panetta, a member of the Executive Committee of the European Central Bank (ECB), recently announced that the European Commission would be presenting a legislative proposal for the digital euro in June. He further stated that the next steps would be decided in October.
Digital Euro Regulatory Framework In Progress
In an interview with the ECB’s official site, Panetta confirmed that the eurozone bank is in regular contact with the European Commission to establish a regulatory framework for the digital euro. The digital euro is set to become the official central bank digital currency (CBDC) for the 27 countries in the European Union.
Panetta stated, “We are studying the design of the digital euro, its distribution, and its impact on the financial sector.” He also mentioned that the proposal expected to be presented in June would receive a response from the Governing Council of the ECB in October.
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The Governing Council will then decide whether to initiate a preparation phase to develop and test the digital euro. According to Panetta, the European CBDC testing phase could last two to three years.
If everything progresses smoothly and both the Governing Council of the ECB and the legislators of the European Parliament approve the proposal, the digital euro could be launched in approximately three to four years, estimated Panetta.
Will The Digital Euro Receive Significant Adoption?
During the interview, Panetta was asked about the benefits and potential risks of using the digital euro. In response, he emphasized the need to provide citizens with a risk-free digital means of payment that can be used freely throughout the euro area.
Panetta highlighted that such a solution currently does not exist, pointing out that the card payment market is dominated by non-European companies, specifically referring to Visa and Mastercard. He stated that this situation would be unthinkable in the United States and expressed concern about companies selling users’ personal data.
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Panetta also emphasized the importance of central bank money remaining at the financial system’s core. The increasing adoption of cryptocurrencies like Bitcoin (BTC) raises concerns for entities like the ECB.
Addressing concerns about privacy, Panetta clarified that the ECB would not have access to personal data. Financial intermediaries will handle the distribution of the digital euro, and a balance must be found between ensuring confidentiality and combating money laundering and terrorist financing. Panetta noted that the responsibility of finding this balance lies with the legislators.
CBDCs On The Rise
Central Bank Digital Currencies (CBDCs) are indeed on the rise as countries worldwide explore the potential of digital currencies issued and regulated by central banks. Countries like the Bahamas and Nigeria have already launched their digital currencies, while China and Japan are in advanced pilot stages.
-Featured image from iStock.com, chart from Tradingview.com
U.S. Presidential Candidate Ramaswamy Takes Potshot at DeSantis Bitcoin Remark
The largest cryptocurrency is suddenly a talking point in the 2024 race, after Florida Governor Ron DeSantis declared he would “protect the ability to do things like Bitcoin” during the launch of his campaign on Twitter on Wednesday.
Florida’s DeSantis Waging Toothless Campaign Against Digital Dollars, Lawyers Say
The state-level campaign against a U.S. digital dollar made its first foray into established law with Governor Ron DeSantis’ signature on Florida’s effort to block the use of virtual government-backed money in business transactions.
G-7 Finance Ministers Discuss Crypto Regulation Ahead of Japan Summit Next Week
Representatives for the seven advanced economies signaled a commitment to following norms set by standard-setters FSB and IMF on crypto and central bank digital currencies.
Former DoJ Kennedy Jr, Laments on Global Financial Censorship, Shows Support For Bitcoin
The former US Department of Justice Attorney General Robert Francis Kennedy Jr, recently lamented the growing financial censorship worldwide and showed support for Bitcoin.
The financial censorship of political enemies is something we’re used to seeing under authoritarian regimes. No one was surprised when Russia froze more than 100 bank accounts tied to opposition leader Alexei Navalny. But Canada did it too, locking more than 200 accounts of…
— Robert F. Kennedy Jr (@RobertKennedyJr) May 5, 2023
According to Kennedy Jr, the major victims are political enemies of most governments that he classified as “authoritarian regimes.”
Political Enemies Made To Suffer Financial Censorship
In his Twitter post, Kennedy stated that the trend in this financial prohibition is evident in several countries globally. In 2019, Russian authorities froze over 100 bank accounts related to the opposition leader Alexei Navalny. Though the authorities stated that the action aligned with a money laundering investigation, many citizens believed it was politically inclined.
Last year, Canada froze over 200 accounts of people and firms connected to the protests in Ottawa against Covid-19 mandates.
According to the reports, Royal Canadian Mounted Police (RCMP) froze several financial products, which included bank and corporate accounts. Also, it froze a payment processing account with a valuation of about $3.8 million.
After citing these instances, the environmental lawyer stated that financial censorship is gradually creeping into the United States. This means a person’s account could be frozen due to his comments on social media or political stance.
Kennedy Jr cited the incidents in 2010 when PayPal, Mastercard, and Visa suspended an NGO and whistleblowing platform, WikiLeaks, that exposed big corporations and government institutions of unethical acts. Notably, the suspension was through the command of the US State Department.
DoJ Kennedy Jr On Bitcoin And CBDCs
The central banks of countries manage Central Bank Digital Currencies (CBDCs). This means that the government will control the financial accounts of all residents in a country that runs CBDC.
Kenndy Jr believes CBDCs could magnify a government’s power to suppress meaningful political dissent. The authorities could decide to cut the financial access of some individuals just because of political statements and opinions.
The lawyer noted that a meaningful dissent should include people’s ability to save and use their finances without political interference. It should be about maintaining the proper political protection from powerful personal interests regarding democracy.
But citizens’ meaningful dissent is at risk with the adoption of CBDCs and their power to the government. As such, Kennedy Jr supported Bitcoin, stating that the crypto asset would allow anyone to operate financially without government interference.
In his words, Bitcoin is a lifesaver that enables people’s free global movement and actions.
Featured image from Pexels and chart from Traidngview.com
The Reactionary Political Theater of CBDC Bans
The jury is out on whether the benefits outweigh the risks of central bank digital currencies, but stymying research and passing premature legislation comes with its own harms.
Central Bank Digital Currencies Are Unexpectedly Becoming a Presidential Election Issue
The U.S. has no plans to issue a digital dollar. So why are so many politicians coming out against the idea?
RFK Jr. Raises Crypto Taxes, Regulation as Issues in Opening Days of 2024 Presidential Race
Robert F. Kennedy Jr., the latest presidential candidate from one of the most famous U.S. political families, is introducing a number of crypto issues in his newly announced campaign to challenge Joe Biden.
In the ‘Stablecoin Olympics,’ No Winner Will Take All
Can CBDCs, Tokenized Deposits, Stablecoins and DeFi Coexist?
Modern payments tools may eventually compete with banks. But is there a place for tokenized bank deposits and central bank digital currencies in DeFi?
The U.S. Should Lead the Digital Future of Money
In his speech to CoinDesk’s Consensus festival yesterday, the head of the non-profit Digital Dollar Project says a U.S. central bank digital currency is too important to be left to central bankers to design. Money is a social issue requiring broad-based public engagement.
Stablecoins must be programmable to counter CBDCs
Decentralization enables programmability — and that allows stablecoins to wield a key advantage over central bank digital currencies.
Draft U.S. Stablecoin Bill Shows Major Difference Between Stablecoins and CBDCs
Who Really Benefits From CBDCs? It’s Not the Public
The only people benefitting from central bank digital currencies are lobbyists, tech companies and, yes, central banks, say the Cato Institute’s Nicholas Anthony and Norbert Michel.
G-7 Will Focus on Helping Developing Nations Introduce CBDCs
The Group of Seven (G-7) advanced nations will prioritize considering how it can better help developing countries introduce their central bank digital currencies (CBDCs).
