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The Galactic Grid is a game-changing CBDC technology infrastructure assessment framework designed for central banks, commercial banks, and researchers navigating the chaotic cosmos of CBDC solutions. Click the Source to Learn More.
A new paper by Barclays explores the concept of anchoring money, identifying three elements: singleness of money, official currency as the unit of account, and safety and soundness of financial institutions and payment systems. The paper also suggests that public-private collaboration could explore options to anchor all forms of private UK retail digital money, including commercial bank money, e-money, and regulated stablecoins.
Central banks worldwide are exploring retail CBDCs to improve financial inclusion, enhance payment resiliency, and facilitate cross-border payments. However, adoption remains slow due to lack of public awareness, trust, and incentives. A new framework, REDI, proposes Regulatory, Educational, Design, and Incentive strategies to boost CBDC adoption.
Central banks are exploring the tokenization of finance as a means to address issues in financial markets, such as slow cross-border payments and poorly equipped financial market segments. Successful implementation of tokenization requires addressing regulatory, monetary, and ecosystem-wide considerations to ensure financial stability and security. International cooperation is also crucial to prevent further fragmentation.
At a conference co-hosted by the Bundesbank and the Oesterreichische Nationalbank, experts highlight that the digital euro aims to provide a digital form of central bank money, complementing existing payment methods. It's crucial to design it in a way that benefits consumers, retailers, and financial institutions while ensuring consumer protection.
The European Central Bank pushes for the introduction of a digital euro to reduce Europe's reliance on foreign payment providers and empower consumers, merchants, and banks. The digital euro would offer free, privacy-focused payments and help smaller merchants negotiate better conditions with international card schemes.
One key challenge of introducing CBDCs is the potential financial instability if CBDCs become too attractive compared to traditional bank deposits. To mitigate these risks, central banks must carefully consider factors like interest rates and holding limits. By striking the right balance, CBDCs can be introduced in a way that benefits the economy without disrupting the financial system.
After the successful completion of its "Project Agila" in January 2025, the Bangko Sentral ng Pilipinas (BSP) will develop a 3-to-5-year roadmap to explore wholesale CBDC. The project's trials involve six major Philippine financial institutions and focuses on 24/7 wholesale fund transfers.
The Eurosystem's exploratory work on using DLT for wholesale financial transactions settled in central bank money sees significant progress. Over €530 million has been successfully settled in more than 50 transactions involving 15 different financial firms and central banks since May 2024, across a range of use cases.
First Abu Dhabi Bank (FAB) successfully completes a pilot using Programmable Payments with JPM Coin, a blockchain-based payment solution by J.P. Morgan's Onyx unit. This innovative solution enables clients to benefit from real-time, event-based programmable payment capabilities, opening up new possibilities for dynamic and automated funding and settlement.
ANZ joins the Monetary Authority of Singapore's (MAS) Project Guardian to explore broader access to tokenized real-world assets in financial markets. In partnership with Chainlink Labs and ADDX, ANZ will investigate interoperability between private blockchains to exchange tokenized commercial paper and other assets, supporting the development of a secure digital asset ecosystem.
Visa develops the Visa Tokenized Asset Platform (VTAP) to help banks issue fiat-backed tokens on the Ethereum network. VTAP will enable the creation of tokens powered by smart contracts, facilitating the digitization and automation of existing asset exchange processes. BBVA is one of the first banks to pilot this platform, expecting a live pilot roll out in 2025.
The Hong Kong Monetary Authority (HKMA) commences Phase 2 of its e-HKD Pilot Programme, expanding the project to explore innovative use cases for new forms of digital money, including e-HKD and tokenized deposits, that can potentially be used by individuals and corporates. The project has been renamed "Project e-HKD+" to reflect the evolving fintech landscape.
Researchers from the European Central Bank develop a model to understand how to increase consumer adoption and usage of CBDCs, such as the digital euro. Key strategies include designing the CBDC to combine the advantages of cash and cards, effective communication, and leveraging network effects from emerging payment technologies.
The Bank of Korea (BOK) is set to launch a pilot program for tokenized deposits, starting in December at the earliest. 100,000 selected participants will be able to use digital tokens, converted from their bank deposits, to make payments at domestic supermarkets and convenience stores.
Macau's Chief Executive announces that the prototype of the SAR’s digital currency, the e-MOP, will be revealed before the end of this year. The release is planned as part of the celebrations around the 25th anniversary of Macau's handover to China, laying the groundwork for future applications and uses of the e-MOP.
More than 40 private sector financial firms, convened by the Institute of International Finance, will join the Bank for International Settlements and leading central banks in Project Agorá. The project aims to explore how tokenization can enhance wholesale cross-border payments, addressing structural inefficiencies in the current system.
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