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Jerome Powell Clarifies: US Far From Introducing a Central Bank Digital Currency

Jerome Powell Clarifies: US Far From Introducing a Central Bank Digital CurrencyFederal Reserve Chair Jerome Powell stated before the Senate Committee on Banking, Housing, and Urban Affairs that the United States is far from adopting or even recommending the introduction of a central bank digital currency (CBDC), emphasizing a significant distance from such a possibility. He assured that any potential CBDC would not be designed for […]

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Philippines to Develop Blockchainless Wholesale CBDC in Two Years

Philippines to Develop Blockchainless Wholesale CBDC in Two YearsThe Central Bank of the Philippines will develop a central bank digital currency (CBDC) in the next two years, according to Governor Eli Remolona Jr. The still unnamed CBDC will focus on the wholesale market and won’t use blockchain tech, instead relying on the Philippine Payment and Settlement System, owned and operated by the central […]

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US Pushing To Confiscate $300,000,000,000 After Freezing Assets Owned by Russia’s Central Bank and Members of the Russian Elite: Report

US Pushing To Confiscate 0,000,000,000 After Freezing Assets Owned by Russia’s Central Bank and Members of the Russian Elite: Report

The US is reportedly pushing G7 nations to confiscate $300 billion in Russian assets that were frozen in response to the country’s invasion of Ukraine. America, backed by the UK, Japan and Canada, want to have a proposal on how to take the assets ready in February at the two-year anniversary of the conflict in […]

The post US Pushing To Confiscate $300,000,000,000 After Freezing Assets Owned by Russia’s Central Bank and Members of the Russian Elite: Report appeared first on The Daily Hodl.

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Taiwan central bank completes wholesale CBDC study, plans next steps

A central bank official spoke about ongoing CBDC research and other payment modernization Taiwan is exploring.

Taiwan’s central bank has completed a feasibility study of wholesale central bank digital currency (CBDC) and is continuing to consider its introduction. The central bank is seeking feedback from business and academics and will continue to work on platform design, deputy governor Mei-lie Chu said on Dec. 7. 

In a lengthy speech at an event for bankers, Chu outlined what she called Banking 4.0, or “services embedded in customers’ daily lives,” including the integration of artificial intelligence and advanced mobile and digital technology into banking. She devoted about half of her presentation to CBDC.

Chu referred to Bank for International Settlements research and said she saw the advantages of CBDCs and tokenization of real-world assets. Furthermore:

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Bitcoin is up 170% since the ECB called its ‘last gasp’ at $16.4K

Bitcoin does the complete opposite of what the EU's central bank warned about in late 2022.

Bitcoin (BTC) has gained almost 170% since the European Central Bank (ECB) warned of its impending “irrelevance.”

As noted by crypto proponent Eric Wall and others on Dec.

ECB Bitcoin myopia: "What else are they wrong about?"

Bitcoin traded at just $16,400 when on Nov. 30, 2022, the ECB published a blog post dedicated to its death.

Coming just after the implosion of exchange FTX and subsequent market flight, the post argued that even those levels were a stopping point on the way to new lows.

“The value of bitcoin peaked at USD 69,000 in November 2021 before falling to USD 17,000 by mid-June 2022.

“For bitcoin proponents, the seeming stabilization signals a breather on the way to new heights.

This “last gasp” initially continued to play out.

A year after the ECB’s premature obituary, Bitcoin is at its highest since April 2022 — at $43,800 at the time of writing, or 166% higher than when the bank sounded the alarm, per data from Cointelegraph Markets Pro and TradingView.

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Altcoin That’s Exploded Over 700% in Six Months Gearing Up for the Next Leg Higher, Says Top Crypto Analyst

Italy and South Korea central banks agree on CBDC cooperation

The central banks of Italy and South Korea announced a memorandum of understanding in the development and deployment of their respective CBDCs.

The Bank of Italy announced on Dec.

According to the Italian central bank, this memorandum of understanding will entail the “mutual sharing of knowledge and information” when it comes to information and communication technology (ICT) issues.

Particularly, it mentioned ICT issues related to real-time settlement systems and central bank digital currencies (CBDCs).

The announcement said the meeting was attended by the general manager of the Bank of Italy, Luigi Federico Signorini, who signed off on the agreement.

Related: UK House of Commons recommends further CBDC tests on viability, risks

Throughout the last year both countries have been exploring CBDCs, though with different approaches. 

In Italy, the central bank has mainly been focusing on interoperability in its solutions for settling distributed ledger technology (DLT)-based transactions via hash linked contracts, rather than a wholesale CBDC approach as is the case with other European countries.

Meanwhile South Korea has already begun to pilot its CBDC infrastructure technology as of October of this year.

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Solomon Islands, Soramitsu team up for Bokolo Cash CBDC proof-of-concept

The Solomons join tiny island nations worldwide at the forefront of CBDC development. Soc A new CBDC joins the very large crowd.

The Central Bank of Solomon Islands has launched a proof-of-concept for a central bank digital currency called Bokolo Cash.

Bokolo Cash will be worth one Solomon Islands dollar.

Wholesale transfers between commercial banks and simulated cross-border payments and remittances will also be tested. Users will undergo “two-tier” Know Your Customer verification, according to Soramitsu.

Related: Small Islands, big problems: Can Bitcoin fix this? Cointelegraph Cape Verde video

Bokolo Cash will operate locally on a tailor-made blockchain based on Hyperledger’s Iroha.

The project was initiated on Nov. Solomon Islands Prime Minister Manasseh Sogavare said:

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BIS advises central banks to plan in advance for CBDC security

From legal issues to hackers, launching a CBDC is fraught with risks, and BIS has a big list of them to consider.

Issuance of a central bank digital currency (CBDC) requires adequate attention to security, the Bank for International Settlements (BIS) reminded central bankers in a report on Nov. 29. An integrated risk-management framework should be in place starting at the research stage, and security should be designed into a CBDC, the report said.

Risks associated with CBDCs will vary across countries, as conditions and goals vary, and they will change across time, requiring continual management. These risks can be broken down into categories and a wide array of individual factors, the study demonstrated. The risks grow with the scale and complexity of the CBDC. In addition:

“A key risk are [sic] the potential gaps in central banks' internal capabilities and skills. While many of the CBDC-related activities could in principle be outsourced, doing so requires adequate capacity to select and supervise vendors. […] A number of operating risks for CBDC stem from human error, inadequate definitions or incomplete planning.”

Cybersecurity may be challenged by other countries, hackers, users, vendors or insiders. The study identified 37 potential “cyber security threat events” from eight specific risks. Distributed ledger technology may be unfamiliar to a central bank and so not undergo full vetting or cause overdependence on third parties.

Related: Security audits ‘not enough’ as losses reach $1.5B in 2023, security professional says

The study suggests an integrated risk management framework to mitigate CBDC risks.

Proposed CBDC resilience framework. Source: BIS

Despite the limited use of CBDCs in real life so far, several examples of risk management failure can be found. China found it was unprepared for the data storage requirements after it launched its digital yuan pilot. The Eastern Caribbean Central Bank’s DCash, a live CBDC, suffered a two-month outage in early 2022 due to an expired certificate in the software.

On the other hand, the DCash pilot project had been considerably expanded the previous year to provide support in Saint Vincent and the Grenadines after a volcanic eruption there, improving the currency’s resilience, the study reminded.

Magazine: HTX hacked again for $30M, 100K Koreans test CBDC, Binance 2.0: Asia Express

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Nigeria’s NITDA advocates AI integration in payments for global recognition

NITDA chief Kashifu Inuwa Abdullahi said it’s crucial to take proactive measures to harness AI benefits and mitigate threats.

In a bid for greater global recognition and domestic use of the Nigeria Payments System, the director-general (DG) of the National Information Technology Development Agency (NITDA), Kashifu Inuwa Abdullahi, has stressed the importance of collaboration between NITDA, the Central Bank of Nigeria (CBN) and financial institutions.

In an interview with Cointelegraph at the CBN’s 2023 Payments System Management Departmental Retreat program, Inuwa said collaboration is necessary to leverage emerging technologies such as artificial intelligence (AI) and data analytics to deepen digital payments.

Inuwa said financial technology (fintech) has shown it can help drive Nigeria’s performance in the industry and environmental, social and governance sectors, especially with the application of a developmental regulation approach and enabling policies co-created by the tech ecosystem.

Image of the director-general of the National Information Technology Development Agency, Kashifu Inuwa Abdullahi. 

Inuwa said it’s important for measures to be deliberately taken to reap the benefits and forestall the impending threats of AI, and he emphasized that NITDA will be working collaboratively with the CBN, as with others, in regulating the AI space. He added that if the CBN adopts a particular technology, the potential to move quickly is high.

Asked about Nigeria’s strategy around the opportunities and threats posed by artificial intelligence, Inuwa explained that the federal government had noted the trajectory of AI models, which have seen growth proportions shift from linear to geometrical. He added that the government had, in the previous administration, started working on an artificial intelligence policy through the agency, which he said would be soon unveiled to the public.

Related: Italian regulators investigate online AI data scraping

This AI policy will serve as the foundation for outlining rules, and agencies like NITDA, tasked with implementation, will discuss strategies, frameworks and guidelines for adopting and deploying artificial intelligence. Inuwa noted:

“Although artificial intelligence is often regarded as a double-edged sword, the potential and benefits are tangible but not without a lot of threats, and that is apart from the biases that abound, notwithstanding, our regulatory approach has always been not to stifle innovation.”

Inuwa, while citing a list of other policies of the federal government for the industry, claimed that the initiatives are startup ecosystem-friendly.

Nigeria’s Minister of Communications, Innovation and Digital Economy, Bosun Tijani, recently unveiled the 3 Million Technical Talent (3MTT) program. This is intended to offer over 1 million applicants the chance to follow an introductory AI course.

Magazine: Train AI models to sell as NFTs, LLMs are Large Lying Machines: AI Eye

Altcoin That’s Exploded Over 700% in Six Months Gearing Up for the Next Leg Higher, Says Top Crypto Analyst

Singapore to restrict retail crypto speculation with new rules

According to MAS, speculative cryptocurrency trading is partly fueled by unverified success stories, celebrity endorsements and FOMO on good returns.

In response to the feedback received on its proposed Digital Payment Token (DPT) regulations, the Monetary Authority of Singapore (MAS) laid down measures for DPT service providers to discourage speculation in cryptocurrency investments.

The de facto central bank of Singapore, MAS announced five ways DPT service providers can help retail clients avoid price speculation. DPT service providers must determine their customer’s risk awareness before offering crypto services. In addition, DPT service providers were advised against providing any incentives to trade in cryptocurrencies. Thirdly, DPT service providers cannot offer financing, margin or leveraged transactions.

Refusing locally issued credit card payments is another measure MAS believes will discourage speculation in crypto investments. Lastly, crypto holdings will not be considered in determining a customer’s net worth. Speaking about the decision, Ho Hern Shin, deputy managing director (financial supervision) of MAS, stated:

“While these business conduct and consumer access measures can help meet this objective, they cannot insulate customers from losses associated with the inherently speculative and highly risky nature of cryptocurrency trading.”

According to the MAS, speculative cryptocurrency trading poses “significant risks and consumer harms,” partly fueled by unverified success stories, celebrity endorsements and the fear of missing out on good returns.

Related: Singapore central bank to trial live wholesale CBDC for settlements

On Nov. 15, Singapore’s central bank included five additional industry pilots in Project Guardian to test various use cases around asset tokenization. As explained by MAS:

“These developments under Project Guardian will catalyze the institutional adoption of digital assets, with the aim of freeing up liquidity, unlocking investment opportunities, and increasing the efficiency of financial markets.”

Out of the 17 financial institutions members of Project Guardian, the five pilot projects are distributed among Citi, T. Rowe Price, Fidelity International, Ant Group, BNY Mellon, OCBC, JPMorgan Apollo and Franklin Templeton.

In addition to the five pilots, MAS launched Global Layer One to explore the design of an open digital infrastructure that will host tokenized financial assets and applications.

Magazine: This is your brain on crypto: Substance abuse grows among crypto traders

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