Deutsche Bank Says Digital Currencies Could Be Mainstream in 2 Years

A digital currency could see widespread adoption within the next few years, a new report by Deutsche Bank suggests. Published Monday, the Deutsche Bank report said digital currencies, while only a decade old, have already been shown to have the “potential to radically change payments, banking, central banking and the balance of economic power.” “We believe a new digital currency could become mainstream within the next two years,” according to the report, with both China’s digital yuan initiative and Facebook’s Libra project expected to launch this year. The report said…

Bank of England’s Stablecoin Ruling Targets Financial Stability, Exec Says

Financial stability was a key factor in the Bank of England’s decision to hold stablecoin payment systems to the same regulatory standards as existing payment chains. That’s because stablecoins may seek to operate outside of the existing financial infrastructure – the one that card payments, online banking services and others inhabit. Those activities are regulated across authorization, clearance and settlement to keep the money moving and all parties assured. Using a coffee shop transaction as an example, Segal-Knowles illustrated that stablecoins would have no such oversight. “Stablecoins could mean that…

Central Bank Digital Cash is Coming, Emerging Economies Lead

Central banks representing a fifth of the world’s population say they’re likely to issue a “Central Bank Digital Currency” in the next three years, according to an official survey. According to a survey on CBDCs published by the Bank of International Settlements on Jan. 23, central banks representing 20% of the world’s population say they’re likely to issue a CBDC in the next three years ⁠— and while the relative number of banks is small, representing 10% of the banks surveyed, that’s still twice as many as last year. While…

MIT Research Group Calls Crypto a Testing Ground for a Central Bank Digital Asset

MIT’s crypto and distributed ledger tech research group, the Digital Currency Initiative, recently explained that a central bank digital currency (CBDC) will eventually use some of the concepts and technology currently at play in the experimental crypto space. “CBDC should not be a direct copy of existing cryptocurrencies with exactly the same design and features but there are things we can learn from their emergence — the usefulness of programmability in money and the importance of preserving user privacy,” the MIT group wrote in a lengthy report on Jan. 22. A…

Bank of England is Planing to Adopt Digital Currency

It seems like the banking industry is slowly adopting cryptocurrencies. A group of central banks has come together to assess the potential pitfalls of relying on digital currency, and one of them is the Bank of England. Central Banks Considering Idea of a Central Bank Digital Currency The Bank of England is examining how it can adopt Bitcoin, and a delegation will be meeting other officials from various banks to review this. They will be meeting the European Central Bank, Swiss National Bank, Bank of International Settlements, the Bank of…

Law Firm Representing Quadriga’s Former Users Want Information About ‘Shadow Bank’ Crypto Capital

Miller Thomson, the court-appointed legal counsel for former users of the QuadrigaCX cryptocurrency exchange, is asking for help identifying any records related to Crypto Capital, which may be holding some of the exchange’s funds. In a letter emailed to the exchange’s former customers and posted to its website, Miller Thomson wrote that Crypto Capital Corp., a “shadow bank” registered in Panama, “may have been a payment processor” for the exchange and is asking any customers who have emails or other documents which might be related to Crypto Capital to forward…

India Central Bank Says It Hasn’t Banned Crypto

The Reserve Bank of India (RBI) said regulated entities cannot offer crypto assets in the country, but that does not equate to an overall digital asset ban. In a Jan. 21 article, The Economic Times of India cited a document the RBI submitted to the country’s supreme court in September, which said: “Firstly, the RBI has not prohibited VCs (virtual currencies) in the country. The RBI has directed the entities regulated by it to not provide services to those persons or entities dealing in or settling VCs” India ban drama…

In First ‘Pure Crypto’ Hire, Silvergate Bank Recruits Blockstream Liquid Network Exec

Crypto-friendly Silvergate Bank has made its first hire from the hardcore bitcoin community to support an ambitious roadmap for its business serving digital currency clients.  Benjamin Richman, formerly director of business development and partnerships at bitcoin tech startup Blockstream, joined the La Jolla, Calif.-based bank at the end of last month as director of digital currency.  “We’ve hired other folks that are from tech companies that were providing services to some crypto companies, and we’ve hired former law enforcement to help us with AML/KYC/BSA, but in the pure crypto space…

Paxos Launches Automatic Conversions Between Bank Deposits and Stablecoins

Paxos announced Tuesday a new feature allowing customers to automatically wire transfer funds from their bank accounts into either Paxos Standard or Binance USD stablecoins. Conversely, any PAX or BUSD sent to the designated address will be automatically wired back to the individual’s bank account in USD. Zach Kwartler, senior product manager at Paxos, told CoinDesk this functionality, dubbed Auto-Transfers, should be available with any bank in the U.S. “The blockchain and the real financial world need to be closer together,” he said. “For us, our vision is to use…

India’s Central Bank Explains Why It Blocked Banks From Using Cryptos in Court Filing

The Reserve Bank of India (RBI), the nation’s central bank, has explained that it “ringfenced” financial institutions from dealing with cryptocurrencies over a range of perceived risks. In a response to a petition from the Internet and Mobile Association of India (IAMAI) – which is currently fighting a supreme court case over the issue on behalf of companies affected by the April 2018 order – the RBI further said that in restricting bank involvement, it had not banned cryptocurrency use generally in India. The Economic Times said in a report…