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Bank of Japan will test digital yen with three megabanks

by Blockchain NewsNovember 24, 2022

Even though Japan is undecided if it would develop a central bank digital currency, the Bank of Japan (BoJ) is continuing to test out a digital version of the yen. This is the case despite the fact that the BoJ is testing out a digital version of the yen (CBDC).

Nikkei, a Japanese news agency, reported on November 23 that the Japanese central bank has begun working with three megabanks and regional banks to conduct a trial CBDC issuance. Nikkei’s report was based on information obtained from the Nikkei news agency. The Nikkei news agency was the source for the aforementioned information.

As part of the pilot program, the digital yen, which will eventually take the place of the paper yen as Japan’s national digital currency starting in the spring of 2023, will be tested. This will be the first time the digital yen will be used.

The Bank of Japan, together with other major private banks and other institutions, will work together as part of the experiment to identify and address any problems that may crop up with the method by which customers deposit and withdraw money from their bank accounts.

According to the story, the pilot will test how Japan’s future CBDC performs when it is not connected to the internet, with a special focus on payments that do not need the internet.

The Bank of Japan’s central bank plans to continue with its CBDC experiment for around two years, and it will make a decision by 2026 on whether or not to develop a digital currency. This information comes from the article.

The declaration comes at a time when an increasing number of countries all over the world are launching research and development activities on CBDC, with countries like China acting as models for the rest of the world to follow in their footsteps.

Despite the fact that the vast majority of governments throughout the world have been working tirelessly to implement a CBDC, some nations, such as Denmark, have made the decision to withdraw from the competition.

As the key reasons for discontinuing their CBDC or CBDC-related efforts, the central banks cited a number of issues as the primary reasons for their decision, including the likelihood of obstacles for the private sector, unknown value and benefits, and other problems.

To this day, there has not been a single central bank that has completely ruled out the possibility of the launch of a CBDC.

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China Central Bank Releases Digital CNY Smart Contract Prepaid Fund Management Product

by Blockchain NewsSeptember 8, 2022

According to the China Financial Association, the Digital Currency Research Institute of the People’s Bank of China has launched a digital renminbi smart contract prepaid fund management product – “Yuanguanjia”.

The product was launched to the public across the country at the 2022 Second China (Beijing) Digital Finance Forum held on September 8.

It aims to provide users with prepaid consumption service scenarios by deploying smart contracts on digital RMB wallets. A solution to prevent merchants from misappropriating funds and protect users’ rights and interests.

This product solves the problem that users avoid merchants running away with prepaid consumption and protects consumers’ rights and interests.

The company that released the digital renminbi smart contract prepaid fund management product-Beijing, Central Business District Xinlian Technology Co., Ltd., said that: “this model transforms prepaid consumption into instant consumption, further clarifies that the ownership of prepaid funds belongs to consumers, and ensures that prepaid funds are not was misappropriated.”

Data shows that the digital yuan (e-CNY), the digital currency of the People’s Bank of China (CBDC), is growing rapidly. Since the public trial, transactions in the new fiat currency have totalled 87.57 billion yuan ($13.68 billion).

Last month The Bank of China, in collaboration with the Education Bureau and financial authorities of Longquanyi District, Chengdu, launched an educational electronic RMB smart contract prepaid fund management product, extending the pilot scope to school education,

As reported on August 25 by blockchain.News, the Beijing municipal government has announced a two-year (2022 – 2024) Metaverse innovation and development plan that will require all districts to follow the newly released Web3 innovation program guidelines.

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Tagged : Blockchain / CBDC / CBDC:Asia / China / Digital Yuan / E-CNY

Bank of Thailand to Start Retail Test for its Retail CBDC

by Blockchain NewsAugust 6, 2022

The Central Bank of Thailand also known as the Bank of Thailand (BOT) plans to begin the trial of its Central Bank Digital Currency (CBDC) in a retail setting.

According to the Deputy Governor of the bank, Ms. Vachira Arromdee, Retail CBDC has the potential to be the foundation of future financial systems.

Based on this assumption, BOT considers it necessary to expand the scope of the Retail CBDC development beyond its present state to a pilot phase. During this pilot phase, there will be real-life applications of the Retail CBDC in real-time. The phase will be covered in collaboration with the private sector on a limited scale.

In the first place, many central banks are laying much emphasis on the development of Retail CBDC. Specifically, BOT is among the few who recognize the significance of CBDC as a recent financial tool. The Thailand central bank believes that CBDC can provide more opportunities for individuals and businesses including the general public.

The unending list of opportunities encompasses providing more enormous and convenient access to a series of financial services, invariably at a lower cost.

Formerly, BOT took part in Wholesale CBDC projects as well as Proof-of-Concept Retail CBDC testing with corporates. Times are changing to accommodate more comprehensive Retail CBDC development. In light of this, the financial giant is gradually moving with the trend.

The Retail CBDC Pilot Study Tracks

With the intention of a pilot phase, there will be two tracks to its achievement.

The first, is the Foundation track where an assessment will be carried out to ascertain the safety and efficiency of the system. Its technological design will also be examined in this track. Particularly, trading activities like paying for goods and services with CBDC will be conducted.

Next, the Innovation track will target the programmability. This will facilitate the development of innovative use cases for CBDC.

With this track, BOT will develop a design of CBDC that will fit perfectly into its future context. A CBDC Hackathon will take place welcoming both the private and public sectors to participate, so long they apply from 5 August to 12 September 2022.

Additionally, the pilot study will only involve a selected few, therefore, the public is advised to be cautious of fraudsters who might claim to be involved in the process.

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Tagged : Bank Of Thailand / CBDC / CBDC:Asia

Bank Indonesia to Evaluate CBDC Influence to Local Economy

by Blockchain NewsJuly 13, 2022

Doni Primanto Joewono, the Bank Indonesia (BI) Governor, said cryptocurrency can facilitate financial system efficiencies and inclusion. The administration is evaluating the impact of adopting central bank digital currency (CBDC).

Speaking at a side event of the G20 summit, Joewono noted that the growth of crypto assets spurred by digitization in the post-pandemic era has transformed general life and people’s activities.

These transformations, therefore, pursue central banks to explore the issuance of CBDCs. Joewono said “a number of central banks are carefully continuing to study the possible effects of the CBDC, including Indonesia.”

The governor also stipulated that a regulatory framework is crucial for the stability of crypto assets. He pointed out:

“Crypto assets can potentially help emerge new risks that could affect economic, monetary, and financial system stability.”

As part of the CBDC feasibility study, Bank Indonesia plans to offer a white paper concerning establishing the digital Rupiah.

This seems to be a change of tune based on Indonesia’s previous tough stance on the crypto sector. Previously, the national Financial Services Authority (OJK) asserted that financial firms should not offer cryptocurrency services. OJK had stated:

“OJK has strictly prohibited financial service institutions from using, marketing, and/or facilitating crypto asset trading.”

Once rolled out CBDC, the digital currency is expected to drive the financial inclusion of nearly 1.7 billion people left out of the banking system.

CBDCs are digital assets, pegged to a real-world asset and backed by the central banks, meaning that they represent a claim against the bank, precisely the way banknotes work. Central banks will also be in complete control of their currency supply.

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Tagged : Bank Indonesia / CBDC / CBDC:Asia / Crypto / Indonesia / Regulation

$30m e-CNY Airdropped in Shenzhen to Boost Consumer Spending

by Blockchain NewsMay 31, 2022

The use of China’s Central Bank Digital Currency (CBDC) is currently being boosted by the city of Shenzhen, according to reports that the authority has airdropped 30 million Digital Yuan (e-CNY) to its residents.

According to the Shanghai Securities News, the airdrop was aimed at changing the resident’s consumer spending habits to be appropriately revitalized.

Per the report, the airdrop will be made or distributed through food delivery giant, Meituan Dianping, one of the private partners helping the Chinese government with the broad retail testing of the e-CNY. In order to receive the Digital Yuan airdrop, interested users will need to indicate interest in the program by signing up on the Meituan app, and applying for the incentive.

The final beneficiaries will be selected based on a lottery system, a trend which is common to Shenzhen and e-CNY airdrops. Successful residents will be able to spend the issued funds at more than 15,000 merchant stores that accept the e-CNY as payment for goods and services rendered.

The initiative from the Shenzhen city government is not the first of its kind as the officials continue to explore avenues to support the local economy amidst the growing incidence of lockdowns stirred by the Covid-19 pandemic.

The airdrop is also evidence that the CBDC from the People’s Bank of China (PBoC) is a very functional one and very close to a broad national launch. Despite the official launch date of the e-CNY not yet announced, a lot of accolades have been shared as the PBoC pushed for the new legal tender to feature at this year’s Olympic Games held in January. The CBDC also reportedly had transaction figures that surpassed records from international payment giants like Visa.

The report from Shanghai Securities News confirmed that previous airdrops like these are known to bolster consumer spending indeed, and expectations mount that this latest measure will also follow suit.

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Tagged : CBDC / CBDC:Asia / Digital Yuan / E-CNY / Shenzhen

HKMA Seeks Public Consultation for e-HKD Development

by Blockchain NewsApril 28, 2022

In Hong Kong, the local financial regulator has issued a discussion paper to the public, asking for the public opinions about introducing domestic retail central bank digital currency (rCBDC), or e-HKD.

The Paper, published by the Hong Kong Monetary Authority (HKMA) on Wednesday, Apr 27, entitled “e-HKD: a policy and design Perspective”, covers various issues, including the potential benefits or challenges brought by rCBDC, design considerations, such as the issuance mechanism of e-HKD.

Eddie Yue, Chief Executive of the HKMA, said the Paper marks another milestone in our exploration of the e-HKD:

“We strongly encourage the public and the industry to take part in this important consultation and share their views with us. The comments received would help us formulate the strategy for best positioning our financial market in the rapidly evolving rCBDC space.”

This Paper is the second part of the study, followed by the initial findings mainly focusing on the technical perspectives of introducing e-HKD. The latter, meanwhile, mainly focuses on policy and design aspects of introducing the e-HKD.

HKMA asked for public opinions to submit their ideas before May 27.

Local media MingPao reported, citing Yue’s comments regarding the development of e-HKD, that one of the differences between digital payment and e-HKD is the level of risks. The head of HKMA emphasized that “the credit risk of e-HKD is zero,” as the digital currency is issued or supported by HKMA. In contrast, the deposit stored in digital wallets would be subject to retail institutions. Yet, the nature of digital currency is unable to be anonymous like the note tender; it has to be traceable at a certain level under supervision and regulation. The administration needs to be cautious regarding privacy and data access to users.

Outlook of developing e-HKD & cryptocurrency

Meanwhile, the city also faces various fintech challenges nowadays, including the development of digital payments and the rising of cryptocurrencies. HK needs to remain competitive among its regional counterparts in China and Asia. The administration has rolled out serval digital payment methods, including Octopus, FPS and even different mobile wallets, to respond to challengers like e-CNY trials from mainland China.

In addition, the authority also needs to speed up to explore the potential in terms of cryptocurrencies.

Early this week, The FinTech Association of Hong Kong (FTAHK) said the institution supports in principle concerning HKMA’s proposed risk-based approach to the regulation of payment-related stablecoins.

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Tagged : Bitcoin / Blockchain / CBDC:Asia

Singapore and Cambodia to Explore CBDC to Boost Payments Ecosystem

by Blockchain NewsMarch 28, 2022

Singapore and Cambodia are notably exploring the use of Central Bank Digital Currencies (CBDCs) and digital currencies to improve their payment ecosystem efficiency as well as bolster the growth of startups across the board.

Both ASEAN countries are capitalizing on the growth of e-commerce on their shores to bolster efficiency in their payments ecosystem, according to a South China Morning Post (SCMP) report.

“Southeast Asia has been a very fertile ground for digital payment innovation,” Benedicte Nolens, head of the Hong Kong centre of the Bank for International Settlements (BIS) Innovation Hub, said during a panel discussion. “When you see online e-commerce growth, typically it goes fairly well with new payment mechanisms.”

Singapore is known to be particularly warming up to the growth of digital currencies with a number of startups springing forth to offer services in this regard. While regulation may be slow in comparison with other nations, the Monetary Authority of Singapore (MAS), as well as the other regulatory bodies in the country, are more focused on long term value, hence the thought out process for licensing a business with emerging technology looking to do business on its shores.

Besides the growth of private digital currency startups, Singapore is upfront in the CBDC race as is a part of BIS Project Dunbar which seeks to build a multi-CBDC platform for a variety of Central Banks developing their digital monies. Cambodia on the other hand is a relatively growing economy whose growth has been fast-paced compared with the internet’s advancement.

“There is a lot of room to grow in the internet economy in Southeast Asia. Cambodia is a small country of 16 million people, where we have about 20 million mobile phone subscriptions,” said Serey Chea, Assistant Governor of the National Bank of Cambodia, adding that “It’s like a newborn baby who immediately is given a mobile phone subscription or two or three subscriptions.”

Per the SCMP, the obvious drive by these Southeastern Asian countries to boost their payments landscape has spurred tech startups in Singapore to grow more than 10 times since 2015, a trend that is billed to continue into the near future.

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Tagged : CBDC:Asia / Cbdcs / Digital Currencies / Payments

Singapore and Cambodian to Explore CBDC to Boost Payments Ecosytem

by Blockchain NewsMarch 28, 2022

Both ASEAN countries are capitalizing on the growth of e-commerce on their shores to bolster efficiency in their payments ecosystem, according to a South China Morning Post (SCMP) report.

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Tagged : CBDC:Asia / Cbdcs / Digital Currencies / Payments

Indian Finance Minister Sees “Clear Advantages” in CBDC

by Blockchain NewsMarch 9, 2022

India’s Finance Minister, Nirmala Sitharaman, has hailed the Central Bank Digital Currency (CBDC) being developed by the Reserve Bank of India (RBI).

Speaking at the India Global Forum’s annual summit, the minister said the decision to develop the Digital Rupee project was based on consultation between the RBI and the government, noting both parties see a clear advantage in the initiative.

“It was a conscious call taken in consultation with the central bank- the Reserve Bank of India. We would like them to design it the way they would like to do it, but this year we expect the currency to come out from the central bank itself,” Sitharaman said in response to a question on Digital Rupee. “We see clear advantages in a central bank driven digital currency, because in this day and age, bulk payments happening between- countries, large transactions between institutions and large transactions between central banks themselves of each country- are all better enabled with digital currency.”

With 2022 being the targeted timeline according to the minister, the development of the CBDC will now trail-related projects from other advanced economies around the world, including China, Singapore, and Japan, amongst others.

India has taken a long route in relation to its handling of digital currencies and the eventual decision to float its own digital currency. Whether or not the authorities admit, the growth of digital currencies represents a major factor backing the decision to launch its own CBDC. However, Indian lawmakers have long contemplated whether to ban crypto assets like Bitcoin or to accommodate them to co-exist with any potential Digital Rupee that will be floated.

When asked about the impending regulation for the cryptocurrency ecosystem, Minister Nirmala said the decisions to ban these coins or not would be hinged on whether the government has a legal basis to do so or not.

In her words:

“The consultations are on anybody interested in this domain are welcome to participate, after the consultation process gets duly completed, the Ministry would probably sit and mull over it, which is required because we need the executive to be sure that we are not crossing any legal requirements, post which we will be coming out with what’s our position on it.”

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Tagged : CBDC / CBDC:Asia / Digital Rupee

Digital Yuan Transactions Overtakes Visa during Beijing Winter Olympics

by Blockchain NewsFebruary 11, 2022

At the opening ceremony of the 2022 Winter Olympics in Beijing, the number of transactions using the digital yuan greatly exceeded Visa, according to a Wall Street Journal reported on Wednesday.

At the time of the Beijing Winter Olympics, the Olympic Village, athletes and tourists can use cash, Visa cards or digital yuan for transactions.

Many businesses that support digital renminbi are outside the isolation circle, and there are also many self-service machines on-site at the Winter Olympics that allow people to exchange fiat currency for digital renminbi, thereby reducing human-to-human contact and effectively controlling the spread of COVID-19.

Beijing 2022 Olympic Organizing Committee says that:

“Replacing cash with digital yuan for payment can effectively reduce direct contact between people and the risk of the spread of Covid-19.”

Although in China, dominant mobile payment platforms, Alipay and WeChat Pay, have become widely accepted payment methods by the public.

Relevant personnel indicated that the digital yuan or DCEP may be catastrophic for dominant mobile payment platforms, the “stickiness” of those platforms and their wide-ranging lifestyle offerings as the reason they might endure despite the advantages of a government-backed digital currency.

But due to the exclusive agreement with visas at the Winter Olympics, the Olympic Village, athletes and tourists can only use cash, Visa cards or digital yuan for transactions.

The usage of the digital yuan raised scepticism to the U.S., Senator Pat Toomey, a senior member of the U.S. Senate Banking Committee, requested the U.S. administration to closely examine the Chinese digital yuan’s rollout during Beijing Winter Olympics.

As reported by blockchain.News on January 19, China’s CBDC is growing at a fast pace as data released official from the PBOC financial markets department revealed the new legal tender has inked a total of 87.57 billion yuan ($13.68 billion) in transactions since public trials began.

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Tagged : Bitcoin / Blockchain / CBDC / CBDC:Asia / China / Digital Yuan / Winter Olympics