The mission’s objective was to support the BCRP in its research on the conditions for success of a CBDC and the involvement of different stakeholders. The IMF has been providing Technical Assistance to BCRP since 2021 regarding CBDC. The initial TA mission assisted the central bank in the Preparation phase of the project, which involved defining the context, key questions, and potential approaches for studying a CBDC. The second phase, called the Proof of Assumptions phase, was initiated by the publication of a white paper by the central bank, supported by the current mission. This white paper presented the context, goals, and challenges related to a potential CBDC in Peru. Building on recommendations from the first mission, the BCRP acknowledged the importance of engaging stakeholders such as representatives from the banking sector, payment service providers, and the Fintech and technology sector.
China
Status : Pilot
Usecase : Retail, Wholesale
China launched the Digital Currency Electronic Payments (DCEP) project, also known as e-CNY, in 2017. The pilot program started in April 2020, initially in four cities and later expanded to twenty-eight major cities. As of June 2021, over 20.87 million personal and 3.51 million corporate digital yuan wallets had been opened, with a total transaction value of around $5.39 billion. By October 2021, the number of individual wallets reached 123 million, with a transaction volume of 142 million and a transaction value of approximately $8.8 billion. China is integrating existing payment channels with e-CNY, and AliPay started offering e-CNY in the express payment category in 2023. The digital yuan represented 0.13% of cash and reserves held by the central bank in January 2023.
The People’s Bank of China is also working on cross-border projects. In February 2021, they joined central banks from Thailand, the United Arab Emirates, and Hong Kong to explore the Multiple Central Bank Digital Currency (m-CBDC) Bridge project. In July 2021, foreign travelers to China could use e-CNY without domestic bank accounts by providing their passport information. Testing for cross-border use of e-CNY in Hong Kong has begun, with the aim of broad circulation in 2022. During the Olympic Games in Beijing and Zhangjiakou in February 2022, visitors could use the e-CNY application and card, with daily transactions reaching “a couple of million RMB” or over $300,000.
The motivations behind the e-CNY project include improving the efficiency of central bank payment systems, providing a backup to the commercial retail payment system, and promoting financial inclusion. Sources for this information include the People’s Bank of China, Atlantic Council Research, CNBC, and CoinDesk.
Relevant News
United States House passes bill banning Fed from creating CBDC until 2030
The U.S. ban on CBDC development until 2030 may boost private digital currency innovation while raising privacy and regulatory concerns. The post United States House passes bill banning Fed from creating CBDC until 2030 appeared first on Crypto Briefing.
Read MoreUS Senate passes housing bill with CBDC ban until 2030
The Senate has passed a bipartisan housing affordability bill that bans the Federal Reserve from issuing a CBDC until 2030, which is also expected to quickly pass the House.
Read MoreChina bridges domestic and offshore yuan markets while tightening grip on digital currency
China's strategic moves enhance yuan's global liquidity and digital currency reach, challenging stablecoins and reinforcing monetary control. The post China bridges domestic and offshore yuan markets while tightening grip on digital currency appeared first on…
Read MoreU.S. Senate passes housing bill that carries four-year ban on a Fed CBDC
The idea of a U.S. central bank digital currency — though little more than a research topic at the Federal Reserve — may be getting formally blocked.
Read MoreChina Recruits 26 Banks for Digital Yuan Project
China has reportedly recruited 26 financial institutions for its digital yuan effort. According to a Tuesday (June 16) report from Reuters, the effort is part of China’s plan to expand efficient and low-cost cross-border payments and promote global adoption o…
Read MoreChina develops digital payments system to challenge US dollar dominance
China's digital yuan evolution could reshape global financial systems, challenging US dollar dominance and altering international trade dynamics. The post China develops digital payments system to challenge US dollar dominance appeared first on Crypto Briefin…
Read MoreChina’s top court to study rules for crypto and AI cases
China's Supreme People's Court said it will research new judicial guidelines tied to virtual currency and AI-generated content cases, as part of a broader push to support its digital economy.
Read MoreDHS reports 3M illegal immigrant departures, 94% drop in crossings under Trump
The significant drop in illegal crossings and rise in self-deportations under Trump could reshape U.S. immigration policy and influence crypto remittances. The post DHS reports 3M illegal immigrant departures, 94% drop in crossings under Trump appeared first …
Read MoreSen. Rick Scott Pushes Bill to Ban Chinese Digital Currency in U.S. Transactions
FIRST ON THE DAILY SIGNAL — Sen. Rick Scott, R-Fla., on Thursday reintroduced legislation that would prohibit U.S.-based money services businesses from using central bank digital currencies issued by the Communist Party of China, including the digital yuan. I…
Read MoreTom Emmer calls CBDC the ‘ultimate surveillance tool’ for America
The debate over CBDCs highlights tensions between privacy concerns and global competitiveness, impacting both financial systems and crypto markets. The post Tom Emmer calls CBDC the ‘ultimate surveillance tool’ for America appeared first on Crypto Briefing.
Read MorePakistan
Status : Research
Usecase : Retail
The State Bank of Pakistan has been actively researching and exploring the concept of issuing a Central Bank Digital Currency (CBDC) since April 2019. They have expressed their interest in promoting financial inclusion and reducing inefficiency and corruption through the use of a digital currency. The National Payment Systems Strategy was launched in November 2019 to further support this initiative. Pakistan is closely studying CBDCs and looking to countries like China for inspiration. In April 2022, a central bank official hinted at an upcoming announcement regarding CBDC development, which was made in December 2022. The central bank aims to launch the CBDC by 2025. The sources for this information include the State Bank of Pakistan, Atlantic Council Research, and coingeek.com.
Relevant News
No news available
Iran
Status : Pilot
Usecase : Retail
The Central Bank of Iran (CBI) has been actively pursuing the development of a national digital currency since 2018, following the US withdrawal from the Joint Comprehensive Plan of Action and the reimposition of sanctions. In January 2022, the CBI announced that CBDC development would soon begin. In April 2022, the CBI notified domestic institutions about regulations for a “Crypto-Rial”. There are reports suggesting that the CBI is developing its CBDC using Linux Foundation’s hyperledger, and a pilot version is expected to take a year. In September 2022, a pilot program was launched in partnership with two local banks. The pre-pilot stage has been completed, and additional testing will be conducted in partnership with more domestic banks, according to a February 2023 CBI statement. Iran’s motivations for considering a CBDC include evading sanctions, promoting financial inclusion, and preventing corruption.
Relevant News
Iran completes pre-pilot phase of central bank digital currency
The Central Bank of Iran progresses with CBDC development in anticipation of a visit by the Bank of Russia’s governor Elvira Nabiullina.
Read MoreFour Years Down the Line, Iran's Pilot National CBDC is Ready
The Central Bank of Iran (CBI) is taking its favour for digital innovation to a new level with the possibility of introducing its Central Bank Digital Currency (CBDC) within a short time.
Read MoreZambia
Status : Research
The Bank of Zambia (BoZ) is currently researching the potential benefits of central bank digital currency (CBDC) in terms of reducing transaction costs and improving financial inclusion. Nkatya Kabwe, the acting assistant director of communications at BoZ, stated that the bank is undecided on whether to proceed with CBDC implementation. The research is being conducted in collaboration with technology partnerships and cross-border projects. The motivations behind this research are to explore the possibilities of CBDC and its impact on the country’s financial infrastructure. The sources for this information include the Bank of Zambia, Atlantic Council Research, and bloomberg.com.
Relevant News
No news available
Namibia
Status : Research
The content discusses various aspects related to Central Bank Digital Currency (CBDC), including its status, research, use cases, architecture, technology, infrastructure, access, technology partnerships, and cross-border projects. The properties of CBDC are not explicitly mentioned in the content. The Bank of Namibia and Atlantic Council Research are mentioned as sources for the information provided. Overall, the content presents an overview of CBDC and its current status, while also highlighting the undecided aspects in terms of architecture, technology, infrastructure, and access.
Relevant News
No news available
Montenegro
Status : Development
Usecase : Retail, Wholesale
The Central Bank of Montenegro is planning to collaborate with Ripple to develop a pilot program for a Central Bank Digital Currency (CBDC) in 2023. The focus of this project is to identify practical use cases for a retail CBDC and work with Ripple to design a simulation for circulation. The main objectives of this initiative are to analyze the potential risks and benefits of introducing a CBDC, assess its efficiency, ensure compliance with regulations, and protect users. The motivations behind this project include enhancing financial inclusion, modernizing monetary policy, improving payment security, and increasing the efficiency of cross-border payments. The information sources for this summary are the Atlantic Council Research and coindesk.com.
Relevant News
No news available
Oman
Status : Research
The content discusses various aspects related to Central Bank Digital Currency (CBDC). It highlights that the status of CBDC implementation is still undecided, with ongoing research and exploration of potential use cases. The architecture and infrastructure for CBDC are also under consideration. The access to CBDC and any potential technology partnerships are yet to be determined. Additionally, the content mentions the involvement of the Central Bank of Oman and the Atlantic Council Research as sources of information.
Relevant News
No news available
Saudi arabia
Status : Pilot
Usecase : Wholesale
Project Aber was initiated by the central banks of Saudi Arabia and the United Arab Emirates to investigate the potential of a central bank digital currency (CBDC) for domestic and cross-border settlements. The project focused on the use of real money and emphasized security. It utilized the Saudi Riyal (SAR) and the Emirati Dirham (AED), both of which are pegged to the US dollar. Three use cases were explored, starting with cross-border settlement between the central banks and progressing to settlement between commercial banks within the same country and ultimately between commercial banks in both countries. The tests demonstrated that the decentralized infrastructure enhanced resilience and privacy. In September 2022, Mohsen Al Zahrani was appointed to lead Saudi Arabia’s CBDC project, and in January 2023, the Saudi Central Bank announced increased research into CBDCs, focusing on domestic wholesale CBDC use cases with local commercial banks and fintech partners. The motivations behind Project Aber included researching distributed ledger technology (DLT), exploring its potential in overcoming inefficiencies in cross-border payments, benchmarking performance against other use cases, and gaining knowledge and experience in deploying a mutualized infrastructure.
Sources: Saudi Central Bank, Atlantic Council Research, coindesk.com
Relevant News
No news available
Argentina
Status : Research
In a 2022 Bank for International Settlements paper, the Banco Centrale de la Republica Argentina (BCRA) stated that CBDC issuance is not a priority for them at the moment. However, they will continue studying the concept. Instead, they plan to focus on improving the speed and access to payments through initiatives like Transferencias 3.0. In April 2022, the government of Argentina provided guidance for the Casa de Moneda, or National Mint, to explore the use of cryptocurrency and digital technologies in their processes. The sources for this information are the Atlantic Council Research and decrypt.co.
Relevant News
Ripple to power Georgia’s central bank digital currency, the digital Lari
The National Bank of Georgia will use the CBDC platform to assess Digital Lari's benefits for the government, businesses, and retail users.
Read MoreCentral Bank of Argentina to introduce 'digital peso' bill 'as soon as possible'
The BCRA has accelerated its work on legislation to implement the CBDC workflow in the country.
Read MoreCBDC will improve tax collection — Argentine central bank director
Juan Agustín D’Attellis Noguera publicly supported Sergio Massa in promoting a central bank digital currency as a remedy for the national economy.
Read MoreAmid crypto winter, central banks rethink in-house digital currencies
In recent months, four countries that had previously initiated major CBDC pilot programs have scrapped their adoption plans altogether.
Read MoreCBDCs not worth the costs and risks, says former BoE advisor
Tony Yates, the former senior adviser of the Bank of England, argues that CBDCs are not worth the headache.
Read MoreMexico’s digital peso delayed, launch date unclear
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Read MoreCBDC activity heats up, but few projects move beyond pilot stage
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Read MoreChile puts CBDC plans on hold until end of 2022 to undertake more analysis
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Read MoreMexican Central Bank Reveals CBDC Distribution in 2024
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Read MorePhilippines Central Bank To Research Further Before Launching its CBDC
Philippines Central Bank governor Benjamin Diokno has recommended further research with respect to the proposed Digital Peso, central bank digital currency.
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