Latest Digital Dollar Proposal Spells Trouble for Commercial Banks, Private Citizens

Key Takeaways The Federal Reserve has introduced a legislative proposal for a Central Bank Digital Currency. The digital dollar proposal aims to transfer money from the Federal Reserve to all Americans directly, disintermediating commercial banks.  The CBDC envisages complete control of these new accounts by the Fed threatening the privacy and freedom of individuals. Share this article The president and CEO of the Federal Reserve Bank of Cleveland, Loretta J. Mester, revealed plans for a new digital dollar on Wednesday. The plans outline a complete overhaul of the existing system,…

Most Americans are against a digital dollar CBDC, survey reveals

A new study by crypto mining firm Genesis Mining suggests the majority of U.S. citizens are against the introduction of a Central Bank Digital Currency. A survey conducted by Genesis mining discovered that out of the 400 participants, less than 25% agreed to the proposition that the government should abandon paper money in favor of a digital dollar, while more than half were opposed.  However, the number of CBDC proponents has nearly doubled in 12 months — with only 13% of respondents being in favor of a digital dollar when…

European Commission adopts digital finance package for crypto and blockchain

The European Commission is moving to provide more legal clarity and certainty for the cryptocurrency industry in its member states. On Sept. 24, the EC officially adopted a new digital finance package including digital finance and retail payments strategies, as well as legislative proposals on crypto assets.  The EC said that the new package represents the first time that the authority proposed new legislation on crypto assets. As part of the new legislative proposals, the EC pays special attention to stablecoins — a type of cryptocurrency that pegs value to…

Federal Reserve Bank reveals details of digital dollar research

The President and CEO of the Federal Reserve Bank of Cleveland has revealed details of the Fed’s ongoing research into a potential digital dollar.  Speaking in a keynote address on September 23, Loretta Mester emphasized that the Federal Reserve has been exploring central bank digital currencies (CBDC) since before the pandemic, noting that its Board of Governors has been “building and testing a range of distributed ledger platforms to understand their potential benefits and tradeoffs.” She also noted initiatives from regional Federal Reserve branches, including a multi-year partnership between the…

ECB Seeks to Eliminate Stablecoins, Accelerate Digital Euro Plans

Key Takeaways The President of the ECB Christina Lagarde iterated hopes around the launch of a digital euro to complement cash. Another report published by ECB’s Crypto-Assets Task Force aims to improve the stablecoin terminology and address the potential threats arising from the increasing adoption of various stablecoins.  The total supply of existing stablecoins has tripled since the beginning of this year, surpassing $18.5 billion.  Share this article The ECB’s President and crypto task force view stablecoins as a threat to the sovereignty of the central bank. Europe’s central bank…

Digital euro will not be ‘a substitute for cash’: ECB President

Any digital currency released in the European Union may not fully replace fiat, said the President of the European Central Bank, Christine Lagarde. Speaking at an online meeting of the Franco-German Parliamentary Assembly on Sept. 21, Lagarde stated that the bank was exploring “the benefits, risks and operational challenges” of a European central bank digital currency (CBDC), but fiat currency would likely still play a role in this digital future.  “A digital euro could be a complement to, not a substitute for, cash,” Lagarde stated. “It could provide an alternative…

Non-fungible digital art ‘goes parabolic,’ attracts Morgan Creek execs

Major players in the crypto community are betting big on digital art NFTs surpassing the physical art market. According to a Sept. 21 tweet from Messari analyst Mason Nystrom, sales of non-fungible token (NFT) marketplace Rarible passed $5 million in September, with a volume of 5,309 of its RARI governance tokens traded. Messari reported that $1.5 million of this new volume came on a single day, on Sept. 14. In addition, the SuperRare NFT marketplace has “grown at an impressive rate” this year, according to Nystrom. This activity has caught…

JD.com’s fintech wing partners with PBoC on digital currency projects

The tech and payments-focused subsidiary of Chinese e-commerce company JD.com has entered into a partnership with the Digital Currency Research Institute of the People’s Bank of China. Local media reported on Sept. 21 that JD Digital Technology and the Digital Currency Research Institute will promote the development of mobile applications and blockchain platforms that are in line with PBoC’s forthcoming central bank digital currency. The two entities will also promote the creation of wallets that support China’s digital currency. The mobile applications will reportedly support the digital renminbi and they…

Beijing sees digital currencies as ‘new battlefield’ in global finance

The People’s Bank of China is placing a strong emphasis on the geopolitical stakes of the country’s central bank digital currency development. An article published in the PBoC-run magazine China Finance this weekend argued that Beijing should “accelerate the pace [of CBDC development] to seize the first track” in the global race to issue fiat digital currencies. The article stated that China should seize the advantage of becoming a first mover in the arena of digital currencies, which it characterized as the “new battlefield” of inter-state competition. At stake, the…

Philippine central bank embraces digital tokens

The Philippine central bank sees digital tokens as a means to reduce the use of fiat money and improve the delivery of financial services in the country, even as the country is still studying its own digital currency. Speaking to Bloomberg, Philippine central bank Bangko Sentral ng Pilipinas, or BSP, governor Benjamin Diokno said digital tokens “expand reach and lessen costs of financial services” as well as reduce the use of fiat money. Diokno said digital tokens improve how the central bank provides financial services to citizens. The Philippines is…