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New Fed paper hints that a US CBDC could compete with ‘private digital money’

Thursday proved Fed chair Jerome Powell right in that the US central bank’s long-awaited central bank digital currency (CBDC) paper was right around the corner. The 40-page paper represents a key step toward what one day might become a digital dollar – though the authors stress at the outset that the paper’s existence doesn’t foretell any definitive policy move on the part of the Fed. Rather, it’s intended to be a conversation starter. That said, it does offer a window …

Swiss central bank trials wholesale CBDC with BIS and commercial lenders

The Swiss National Bank (SNB) has successfully tested the integration of a wholesale central bank digital currency (CBDC) settlement with commercial banks. According to an announcement by the Bank for International Settlements (BIS) on Thursday, the successful trial was a major part of the second phase of Project Helvetia that aims to integrate tokenized financial assets with mainstream markets. The BIS joined five commercial banks — Goldman Sachs, Credit Suisse, Citi, UBS, and Hypothekarbank Lenzburg — as well as the …

Visa and ConsenSys team up on CBDC tech

Quick Take Visa and ConsenSys have been consulting with central banks around the world on new tech for central bank digital currencies.  The pair are now looking into pilot cases to test usability. Visa has teamed up with blockchain tech provider ConsenSys in order to develop new infrastructure that will support the rollout of central bank digital currencies (CBDCs). Catharine Gu, head of CBDC at Visa, told The Block that the pair has been consulting with central banks around the world …

New legislation before Congress would bar the Fed from holding retail accounts for a CBDC

As the public awaits the Federal Reserve’s report on a potential central bank digital currency, one member of Congress aims to block such a CBDC from linking the public to the Fed directly. On January 12, Representative Tom Emmer (R-MN) introduced a bill to prohibit the Fed from issuing a CBDC directly to individuals. The bill itself is quite brief, with its central text amending the Federal Reserve Act to include the following:  “Except as specifically authorized under this Act, …

Fed chair and US senator agree on core principles — and limits — for a potential digital dollar

Senator Pat Toomey is adamant on establishing limits on a potential central bank digital currency, though he has not yet ruled out supporting one. CBDCs were a hot topic during a hearing before the Senate Banking Committee earlier today focusing on Federal Reserve Chair Jerome Powell’s renomination. In the past, Toomey, the leading Republican on the committee, has noted his desire to protect private stablecoins over a potential CBDC. Speaking with The Block following today’s hearing, he maintained that he …

Powell says delayed Fed report on digital currencies will be released ‘within weeks’

Chairman of the Federal Reserve Jerome Powell has assured Congress that the Fed’s much-anticipated report on cryptocurrencies will be out “within weeks.” Powell’s estimated time of publication came during a hearing on his confirmation https://www.theblockcrypto.com/linked/129900/powell-says-delayed-fed-report-on-digital-currencies-will-be-released-within-weeks?utm_source=rss&utm_medium=rss before the Senate Banking Committee on January 11. Senator Mike Crapo (R-ID) pushed Powell on the report, which the Fed chair had previous said was coming shortly. “The report really is ready to go and I expect we will drop it — I hate to …

Boston Fed seeks project manager for CBDC development

The Federal Reserve Bank of Boston is looking for a new director to lead the development of a central bank digital currency. Per a LinkedIn post from January 1, the director of project management “will forward the Federal Reserve System’s efforts to build, manage, and test software to further its understandings of digital currency.” The Fed is working alongside MIT’s Digital Currency Institute on CBDC research, a partnership that has put the Boston branch of the U.S.’s central bank at …

Mexican government signals circulation of digital currency by 2024

Mexico’s central bank plans to have its own digital currency in circulation by 2024, according to a Dec. 29 tweet from the country’s presidency. “Banxico reports that by 2024 it will have its own digital currency in circulation, considering these new technologies and next-generation payment infrastructure are of the utmost importance as options of great value to advance financial inclusion in the country,” the Spanish-language tweet said.  The announcement is referring to a central bank digital currency (CBDC), and did …

Tanzania has begun preparations to launch its own CBDC

Bank of Tanzania, the country’s central bank, has begun the process of launching its own digital currency. Governor Florens Luoga reportedly revealed the news at the central bank-organized 20th Conference of Financial Institutions (COFI) on Thursday. He said, “the Bank of Tanzania has already begun preparations to have its own CBDC” to ensure that the country is not left behind the adoption of CBDCs. To that end, the central bank is also looking to expand its CBDC research and development …