Michelle Bowman told a university audience that financial innovation should be justified by need and be properly regulated.
Fed Governor Bowman Says U.S. CBDC May Pose ‘Significant Risk’
Governor Michelle Bowman suggests other payments services, including FedNow, may do a CBDC’s job better, and she’s also suspicious of the dangers of stablecoins.
U.S. CBDC Efforts Opposed in Legislation Advanced by House Republicans
A crypto-related bill meant to stifle a future U.S. central bank digital currency is now heading toward consideration on the floor of the U.S. House of Representatives after committee approval Wednesday, marking further progress for digital assets legislation in Congress.
US lawmakers advance legislation blocking the digital dollar
On Sep. 20 the House Financial Services Committee will mark up two bills blocking a potential digital dollar in the United States.
Dueling CBDC Bills Heading for U.S. Digital Dollar Debate in Congressional Hearing
The idea of a digital dollar in the U.S. is so egregious to Republican lawmakers that it’s become a presidential campaign talking point and the subject of multiple bills to strangle it before it takes a first breath. But Rep. Stephen Lynch (D-Mass.) reintroduced a bill Thursday calling for the exact thing they’re trying to stop.
U.S. Fed’s Vice Chair Barr Says CBDC Decision Still a ‘Long Way’ Off
The U.S. is far from making any decision on a central bank digital currency (CBDC), said Federal Reserve Vice Chairman Michael Barr, who described the Fed as still being in the “basic research” phase.
House committee will reopen discussions on digital dollar in Sept. 14 hearing
Following an August recess, members of the House Financial Services Committee will gather for a ‘Digital Dollar Dilemma’ hearing on Sept. 14.
Tether maintains $3.3B in liquidity cushion: USDT transparency report
The total assets under Tether stand at $86.1 billion with total liabilities amounting to $82.8 billion — thus confirming a reserve backing of over 100%.
Canadians have ‘weak incentives’ to use a CBDC: Bank of Canada
A central bank discussion paper found that the majority of Canadians have little trouble accessing financial services, which gives them little reason to use a CBDC.
Digital Dollar Project completes CBDC retail remittance pilot with Western Union
The project simulated transfers to customers of BDO Unibank in the Philippines with improved settlement time, cost and transparency.
Ron DeSantis vows to ban CDBCs in the US if elected president
Speaking at the Family Leadership Summit on July 14, DeSantis promised to ban CBDCs in the United States if he is elected president.
Privacy should be considered in ‘potential retail CBDC’ — Treasury official
U.S. Treasury official Graham Steele told an audience at a Texas payments conference that a future CBDC in America should consider anonymity.
Zimbabwe Sells Millions of Gold-backed Crypto Tokens, Shrugs off IMF Advice
Zimbabwe ignored the International Monetary Fund’s (IMF) caution and engaged in the sale of its gold-backed crypto tokens. As a result, the Reserve Bank of Zimbabwe recorded huge success selling its gold-backed digital assets worth 14 billion in its native currency or 39 million in United States dollars.
Zimbabwe’s Sale Of Gold-Backed Digital Tokens Attracts Mass Interest
According to an announcement, Zimbabwe’s central bank acknowledged receiving 135 applications for buying its gold-backed crypto assets. While the cumulative application for the newly launched tokens is about 14.07 billion Zimbabwean dollars.
Related Reading: Bitcoin Tweets Surpass Dogecoin Despite Meme Coin Craze
The Zimbabwean apex bank launched the asset in April and made it available for purchase from May 8 to May 12. The digital tokens were backed by 139.57 kilograms of gold, and investors can store them on e-gold cards or electronic gold wallets.
Further, the bank set the token’s minimum vesting period of 180 days. Also, it set minimum purchasing amount levels of $10 and $5,000 for individuals and companies, respectively.
According to XE.com, the official exchange rate for the Zimbabwean dollar is 362 ZWD to 1 USD. However, the actual value is higher on the street.
The Zimbabwean central bank made this bold step with its gold-backed digital as part of its plans to stabilize the country’s economy. It plans to reverse the declining value of its fiat currency against the USD.
Following the success of the initial sales of the digital token, the central bank is gearing toward another sale round. The bank requested that interested investors submit applications by May 18 for settlement.
The Reserve Bank of Zimbabwe governor, Dr. John Mangudya, explained the importance of the newly launched tokens through a local news outlet.
Mangudya mentioned that issuing gold-backed assets will expand the availability of value-preserving instruments in the economy. Also, the tokens will improve the public’s access to and use of investment products.
IMF Warned Zimbabwe Against Gold-Backed Crypto Tokens
The move to sell its gold-back crypto tokens came shortly after the International Monetary Fund (IMF) cautioned it. According to a report from Bloomberg, the IMF warned Zimbabwe against its plan with gold-backed crypto assets.
An IMF spokesperson stated that the country should carefully assess to ascertain that the token’s benefits outweigh the potential risks. Some highlighted risks include legal and operational risks, macroeconomic and financial stability risks, and governance risks.
The IMF also advised Zimbabwe to take alternative measures to stabilize its economy, such as advancing its foreign exchange market.
Also, it suggested that the country could explore tight monetary policies and the removal of exchange rates on transactions for banks, authorized financial dealers, and businesses. However, time will tell if IMF’s caution against risks will become a reality.
Featured image from Pixabay and chart from Tradingview.com
Canada’s central bank asks citizens what they want in a digital dollar
Canadians are being asked what features they wish to see in a digital Canadian dollar even though there are no plans yet to issue one.
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.
North Carolina House Unanimously Votes to Ban Digital Dollar Payments to the State
The U.S. state’s House of Representatives voted 118-0 to pass an amended version of a bill that initially sought to ban crypto payments.
‘Nothing is a coincidence with the government,’ claims US lawmaker on Operation Choke Point 2.0
Speaking at the NFT.NYC 2023, United States congressman Byron Donalds hurled criticism at recent crypto regulatory initiatives.
Just Saying No to Digital Dollars Means Cementing the Surveillance Status Quo
Political attacks on CBDCs gives a pass to existing government and commercial oversight of financial transactions, says Christopher Giancarlo, cofounder of the Digital Dollar Project.
US Senator Ted Cruz tries again with new bill to block CBDC
Ted Cruz said it is “more important than ever” to ensure the financial privacy of American citizens is preserved.
Senior U.S. House Republican Says CBDCs Could Be ‘Weaponized’ as Political Tool
One of the top Republican lawmakers, Rep. Tom Emmer (R-Minn.), is campaigning to stop what he argues is the intent of President Joe Biden’s administration to set up a digital dollar that could be deployed to collect information about citizens’ financial lives.