Stablecoins are a type of cryptocurrency designed to minimize price volatility by pegging their value to a reserve of assets such as fiat currencies or commodities
Central Banks Updates
Over 100 countries are now actively engaged in CBDC research and development, and a report by Juniper Research forecasts that the value of CBDC payments will reach $213 billion by 2030.
Eurosystem Innovation Hub Center
The Eurosystem Centre, hosted and supported by the Deutsche Bundesbank and the Bank of France, focuses on decentralised finance, wholesale CBDC, cyber security, and green finance. The Centre’s unique setup and interactions with the Eurosystem foster innovative thinking. With offices in Frankfurt and Paris, the Centre leverages the innovative potential of the central banks and the financial sectors in these important financial hubs. The Centre collaborates with central banks and other Innovation Hub centres to design and implement projects, and actively participates in fintech events and academic conferences. The Centre’s current projects include cyber security (Project Leap), green finance (Project Gaia), suptech & regtech (Project Atlas), and digital currencies, DeFi, and wholesale CBDC (Project Atlas and Project Mariana). Project Atlas explores the economic significance of cryptoassets and DeFi, while Project Mariana tests cross-border wholesale CBDCs. Project Leap focuses on quantum-proofing the financial system, and Project Gaia aims to enable climate risk analysis. The Eurosystem Centre is a key part of the BIS Innovation Hub’s project portfolio and contributes to enhancing the functioning of the financial system using cutting-edge technologies.
BIS CBDC Updates
Settlements (BIS) plays a significant role in monitoring and researching central bank digital currencies (CBDCs) and digital currencies more broadly. The BIS provides a platform for central banks to collaborate and share insights on the development of CBDCs.
Digital Euro Updates
Digital Euro provide insights into the thinking of central banks about CBDCs and the potential role that CBDCs could play in the future financial system.
Calls for applications for digital euro component providers
Key Points:
- Alias Lookup Component: Streamlines payment transactions using user-friendly aliases instead of lengthy account numbers for enhanced user convenience.
- Fraud and Risk Management Component: Provides additional support to intermediaries in detecting and preventing fraudulent transactions, bolstering security measures.
- App and SDK Components: Includes a digital euro app and SDK to assist intermediaries in offering digital euro services through their own mobile apps and online interfaces.
The European Central Bank (ECB) has released five calls for applications to establish framework agreements with potential providers of components and services related to the digital euro.
The ECB is currently not committing to initiating specific development work outlined in the applications. The objective of this selection process is to form framework agreements with the most suitable external providers, ensuring readiness for digital euro development if deemed necessary in the future. The decision to issue a digital euro will only be made once the European Union’s legislative process concludes.
The framework agreements resulting from this process specifically pertain to certain digital euro-related services. Components like payment settlement would be internally sourced from within the Eurosystem.
The calls for applications target the following digital euro components:
- Alias Lookup Component: Streamlines payment transactions using user-friendly aliases instead of lengthy account numbers for enhanced user convenience.
- Alias Lookup Component: Facilitates payment transactions using user-friendly aliases instead of lengthy account numbers.
- Fraud and Risk Management Component: Provides additional support for intermediaries in detecting fraudulent transactions.
- App and SDK Components: Include a digital euro app and SDK to aid intermediaries in offering digital euro services through their own mobile apps and online interfaces.
- Offline Services Component: Offers engineering and development services to create an offline bearer payment instrument.
- Secure Exchange of Payment Information Component: Supports the secure conversion of transactional and sensitive information upon intermediary request.
FTX debtors assess value of crypto claims based on petition date market prices
FTX debtors have announced a revised Chapter 11 reorganization plan that outlines how they will assess crypto claims made by customers. According to the plan, a conversion table will be used to determine the valuation of these claims, and it will be based on the petition date. This means that the value of the crypto assets at the time of the petition will be considered when assessing customer claims. The use of a conversion table provides a structured and transparent method for determining the value of these claims, ensuring fairness and consistency in the assessment process.
Taiwan officials launch inquiry into crypto betting on election results: Report
According to reports, a number of Taiwanese residents have been using Polymarket, a decentralized betting platform. It is worth noting that Polymarket gained significant popularity during the 2020 United States election, with record-breaking trading volumes. Taiwanese individuals have now joined the platform, possibly attracted by its decentralized nature and the opportunity to engage in betting activities. This highlights the global reach and appeal of Polymarket, as it continues to attract users from different parts of the world. With its previous success during the US election, it will be interesting to see how Polymarket’s popularity and usage evolve in the coming months.
Ripple exec predicts crypto landscape shifts in 2024
Stuart Alderoty, a prominent figure in the cryptocurrency industry, has made predictions regarding two significant developments. Firstly, he anticipates a potential resolution to Ripple’s ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC). This lawsuit has been closely watched by the crypto community, and Alderoty’s prediction suggests that a resolution may be on the horizon. Secondly, Alderoty believes that U.S. lawmakers will reach a consensus on the necessity of implementing regulations for the crypto market. This prediction aligns with the growing recognition among policymakers of the need to establish a regulatory framework to govern the rapidly evolving cryptocurrency industry.
SEC accused of ‘gaslighting’ in Coinbase rulemaking dispute
Pro-XRP lawyer John Deaton has pointed out a contradiction in the Securities and Exchange Commission’s (SEC) stance regarding the Coinbase rulemaking dispute. Deaton highlighted that the SEC’s position directly contradicts the statements made by the SEC chair during his congressional testimony in 2023. This discrepancy raises concerns about the consistency and transparency of the SEC’s approach to regulation. Deaton’s observation adds to the ongoing debate surrounding the SEC’s handling of cryptocurrencies, particularly XRP. The discrepancy between the SEC’s stance in the Coinbase rulemaking dispute and the chair’s previous statements underscores the need for clarity and coherence in regulatory actions within the cryptocurrency industry.