Central bank digital currency a mixed blessing, says RBI

India’s central bank has recognized the potential benefits of central bank digital currencies but not without including a few pitfalls. The Reserve Bank of India offered its assessment of CBDCs as part of its report on currency and finance issued on Feb. 28. As part of the report, the RBI noted that several countries are exploring the creation of their own sovereign national digital currency. According to the central bank’s report, CBDCs can help to promote financial inclusion and transactional transparency. The RBI also stated that national digital currencies could…

SEC’s Division of Examinations issues Risk Alert on digital assets

The Security and Exchange Commission’s Division of Examinations published on Friday a blueprint for investment managers and institutions on how the division will inspect the handling of crypto assets, or “digital asset securities,” moving forward.  The division (formerly the Office of Compliance Inspections and Examinations) is the second-largest wing of the SEC and is tasked with overseeing securities industry players to ensure regulatory compliance. Targeted toward investment advisors, broker-dealers, exchanges and transfer agents, this Risk Alert provided a broad list of specific procedural, bookkeeping and advisory steps the division will…

Galaxy Digital co-president explains two things deterring institutional crypto buying

In recent months, companies such as MicroStrategy and Tesla have picked up sizable positions in Bitcoin. This trend has not yet become the norm for most companies, however. Damien Vanderwilt, co-president of Galaxy Digital, believes security and taxes may be acting as deterrents for crypto investing.  “When we think about the conversations we have with corporates, and institutional clients, and any part of those constituencies considering investing in the sector, the first order problem is safety and are the assets that they’re buying going to be safe and available and…

Fed chair says it’s up to Congress to bring a digital dollar to market

Federal Reserve chair Jerome Powell said 2021 will likely have the central bank engaging with the public and lawmakers regarding the digital dollar. In a House Financial Services Committee hearing today, Powell responded to questions from Representative Patrick McHenry, who said the digital dollar would likely face national and economic security issues for the United States. Powell said there were many concerns surrounding the project and the Fed intended to reach out to the public. “This is going to be the year in which we engage with the public pretty…

Canadian bank plans to launch dollar-backed digital currency ‘in the coming months’

In an announcement on Wednesday, VersaBank said it plans to launch a digital currency called VCAD, which will reportedly be backed by Canadian dollars deposited with the bank. The Canadian bank claimed that VCAD would effectively be “the first digital currency to represent a fiat currency” issued and backed by a North American bank. VersaBank said it had partnered with Canada Stablecorp, a joint venture between investment fund manager 3iQ and blockchain firm Mavennet, to launch the “stablecoin.” The bank plans to make VCAD available to the public “in the coming…

India’s central bank ‘very much in the game‘ with digital currency project

Indian authorities continue to express support for a government-backed digital currency to replace privately-issued cryptocurrencies. According to Bloomberg, RBI governor Shaktikanta Das has expressed the central bank’s determination to create a digital rupee. According to Das, India’s central bank is “very much in the game” and wants to emulate China’s digital currency electronic project, the digital yuan. The RBI chief also revealed that the digital rupee project is a major focus for the central bank. While there has been no official release date for the proposed CBDC, Das said that…

Federal Reserve Chair Calls Digital Dollar “High Priority”

Key Takeaways Federal Reserve chair Jerome Powell spoke before the Senate Banking Committee on Feb. 23. According to Powell, the digital dollar project is an important issue for the central bank, but it is progressing gradually. Powell also discussed other economic policies. Share this article Speaking before the Senate Banking Committee on Feb. 23, Federal Reserve chair Jerome Powell said that developing a digital dollar for the United States is a “high priority.” Shifting Gears for Digital Dollar In the past, Powell has said that the Federal Reserve is considering…

US treasury secretary floats idea of digital dollar maintained by the Fed

Janet Yellen may be open to having United States regulators consider a digital currency, but she still seems to have strong concerns about Bitcoin (BTC).  In an interview for The New York Times’ DealBook DC Policy Project held on Monday, Yellen said it makes sense for the Federal Reserve to look into a digital dollar. Speaking to Andrew Ross Sorkin, the treasury secretary said a digital dollar maintained by the Fed could result in “faster, safer and cheaper payments,” but added there were “a lot of things to consider” before…

Ant-backed MYbank to help China expand digital yuan trial

China’s central bank is pushing exposure to its ongoing national digital currency pilot by enlisting two major private banks in the project. According to a Feb. 22 Bloomberg report, MYbank and WeBank will help the People’s Bank of China extend its user exposure in the ongoing pilots of its central bank digital currency, the digital yuan As part of the integration, MYbank’s service will soon be introduced to the PBoC’s digital yuan app, people familiar with the matter told Bloomberg. The e-wallets by MYbank and WeBank will reportedly have exactly…