April 2022

• ECB, Eurosystem Begins Experimental Prototyping of Digital Euro Customer Interface (April 29, 2022)

  The European Central Bank (ECB) and Eurosystem will select up to five companies/institutions to prototype customer-facing CBDC payment services. The selected organizations will develop front-end applications in accordance with the system’s backend and can provide feedback on the system. This is the latest in a series of digital euro initiatives. Go to Article.

• Senators Bragg and Lummis Discuss Crypto Laws Collaboration Between US, Australia (April 29, 2022)

  Australian Senator Andrew Bragg and US Senator Cynthia Lummis are considering a collaboration between the two countries to investigate cryptocurrency regulation. Both Bragg and Lummis favor a legal but regulated approach to crypto and the two discussed global and domestic standards for crypto regulations. Go to Article.

• NEO Price Prediction 2022: What's Next For the 'Chinese Ethereum'? (April 29, 2022)

  China-based cryptocurrency coin NEO experienced extreme price volatility spikes in 2021. Strict regulation in China led the cryptocurrency to fall from its once prominent financial position and is now perceived as a risky investment. NEO launched its N3 version in late 2021, which introduced several upgrades to the system. Overall, price predictions for NEO are mixed with Wallet Investor adopting an optimistic outlook while Digital Coin predicting less success. Go to Article.

• Digital Yuan Giveaway: Shenzhen Residents to Receive 15 million Yuan in Digital Currency (April 29, 2022)

  The People’s Bank of China (PBoC) has initiated another digital yuan giveaway raffle of 15 million yuan ($2.27 million), distributed via WeChat payment. This is the second digital yuan giveaway the Chinese government has introduced with the first having less widespread use. The giveaway is part of China’s continued retail digital yuan testing. Go to Article.

• Residents of 3 Chinese Cities Paying Taxes and Charge with Digital Yuan (April 29, 2022)

  Residents in three major cities within the Zhejiang province have begun paying taxes, stamp duties, and social security premiums with digital yuan. The People’s Bank of China plans to continue trialing digital yuan taxation possibilities at the Asian Games in September as well as in several more pilot cities. Go to Article.

• Argentinian Government Advances the Creation of a National CBDC (April 29, 2022)

  The Argentinian government has modified the functions of the national mint in preparation for issuing a digital peso. These modifications include developing digital processing, software, printing, teleprocessing and security. Argentina has also allowed the national mint to manage payments on behalf of third parties using electronic platforms and devices. Go to Article.

• How Real is the CBDC Threat to Privacy? (April 29, 2022)

  Widespread unease over CBDCs’ threat to consumers’ privacy is largely unfounded. It’s likely CBDC framework will generally be modeled after existing fiat currencies, meaning that public authorities would only have access to transaction history if due cause were shown. When compared to the amount of personal data freely given to social media or private sector financial services, CBDCs pose little risk to privacy. Go to Article.

• Canadian Conservative Leadership Contender Vows to Kill CBDC (April 29, 2022)

  Pierre Poilievre, a contender for the leader of the Canadian opposition Conservatives, supports digital currencies and blockchain technology for their anti-inflation benefits. Poilievre promises to prevent a CBDC from launching if he is elected, arguing it would threaten consumer privacy. Go to Article.

• First Mover Asia: Hong Kong Isn't Sure if It Needs a CBDC (April 28, 2022)

  The Hong Kong Monetary Authority (HKMA) published a report stating that a despite the potential benefits of a CBDC, Hong Kong sees no current demand for a retail CBDC. Hong Kong already has many retail payment options, and is concerned about declining interest margins and deposits. Go to Article.

• The Philippines will Launch Pilot Wholesale Central Bank Digital Currency Project (April 27, 2022)

  The Philippines will develop a wholesale CBDC with their Project CBDCPh. The Philippines central bank intends to use the wholesale CBDC for cross-border and equity securities payments as well as for intraday liquidity facility. The country has already taken some steps to research a CBDC. Go to Article.

• CBDC in India - the Pros and the Cons (April 22, 2022)

  As CBDC interest sweeps across the globe, it’s important to recognize the benefits and risks of a CBDC. CBDCs can ensure better tax and regulatory compliance in digital transactions, as well as provide cheaper and more efficient cross-border payments. However, CBDCs might have low user adoption and elevate security risks. Go to Article.

• China's Digital Yuan: 5 Ways it Can Impact Global Trade (April 21, 2022)

  China is developing its digital yuan to improve efficiency within its domestic financial, as well as promoting financial inclusion that will eventually be expanded internationally. There are five ways China’s digital yuan will impact global trade: it will globalize financial technological innovation, weaken established fiat currencies and US market dominance, ease cross-border transactions, and finally force a partnership between freight forwarders and Australian shippers. Go to Article.

• Bahamian Government Hopes to Allow Residents to Pay Taxes with Digital Assets in 2022 (April 21, 2022)

  The Bahamas released a white paper detailing plans to allow the citizens to use the country’s CBDC, the Sand Dollar, to pay for taxes. The Bahamian government has created a digital advisory panel to ensure the CBDC isn’t used for tax or sanction evasion. Bahamian Prime Minister Philip Davis hopes the Bahamas will serve as a global leader in technological financial innovation. Go to Article.

• Navigating Terra Nova: The role of Commercial banks in a Future CBDC Ecosystem (April 19, 2022)

  Though commercial banks hold many benefits for retail CBDCs, its unclear how or if they could fit into a CBDC ecosystem. Central banks will likely expand their access to non-bank financial entities and may struggle with CBDCs undermining their business model. Go to Article.

• Levi Strauss & Co. Eyes East Asia Pacific Growth (April 11, 2022)

  Levi Strauss & Co. plans to expand into East Asia Pacific and is especially interested to in Thailand’s retail jean market. Levi’s will also release its Buy Online Pickup In Store (BOPIS) service and promote other technological innovations. Go to Article.

• CLabs to Work with eCurrency to Integrate CBDCs With DeFi (April 8, 2022)

  CBDCs will be able adopt the Celo blockchain in a partnership between eCurrency and CLabs. eCurrency allows central banks to create and issue CBDCs, while the Celo blockchain grants its users access to decentralized finance (DeFi) products and permits cryptographics and CBDCs to move freely across devices and locations. Together, cLabs hopes that the two will provide new opportunities for users to work easily with CBDCs. Go to Article.

• ECB Executive Board Member Talks About Current State of Digital Euro CBDC Research (April 8, 2022)

  European Central Bank (ECB) executive board member Fabio Panetta has stated that the central bank’s adoption of a CBDC is inevitable and that maintaining financial stability will be key. Panetta noted that a CBDC design must also be wary of undermining banks’ power and promoting price instability. Go to Article.

• South Africa Finishes Technical PoC for Wholesale CBDC Settlement System (April 8, 2022)

  South Africa has experimented with distributed ledger technology (DLT) for interbank payments’ settlement, as well with clearing, trading and settlement within the proof-of-concept environment with their Project Khokha. The project used the technology to test a wholesale CBDC and a wholesale settlement token. Go to Article.

• WeChat Joins the Digital Yuan Pilot Program (April 7, 2022)

  WeChat, the popular Chinese online payment platform, will allow users to make digital yuan transactions as part of their CBDC retail pilot. This integration will likely boost digital yuan usage as the Chinese government cracks down on crypto trading and mining. Go to Article.

• More Than Three-Quarters of Central Banks Considering a CBDC: Research (April 5, 2022)

  According to accounting firm PwC’s Global CBDC Index report, over 80% of central banks are either interested in or have launched a CBDC. The report details that retail CBDCs are far more developed than wholesale CBDCs and noted that many countries were at different levels of CBDC development. Go to Article.

• Digital Euro Will Balance Privacy, Anti-Money Laundering Concerns, Finance Ministers Say (April 4, 2022)

  Officials announced that a digital euro would offer privacy for smaller transactions. EU lawmakers have also proposed an Anti-Money Laundering (AML) regime. The EU has not yet made an official decision on whether to launch a digital euro. Go to Article.

• China Central Bank Expands Digital Yuan Pilot Scheme to More Cities (April 2, 2022)

  China’s central bank hopes to increase use of the digital yuan by expanding pilot cities to test the currency. China expected to take advantage of the foreign spectators at the Beijing Olympics to globalize the digital yuan, but the COVID-19 pandemic resulted in more of an interest among local audiences. China has turned its attention now to the Asian Games by setting up pilot cities in the hosting province, Zhejiang. Go to Article.

• CBDC Regulations Taking Shape on the Global Stage, Tax Policies in Focus (April 1, 2022)

  The widespread use of CBDCs outside of the United States has generated discussion on how they should be regulated to complement existing banking structures and currencies, as well as international economic relations. Potential tax policies are of particular interest, as it would affect where and whether CBDCs would be embraced. Go to Article.

• Crypto Pundits Gather Online to Discuss innovation and National Security (April 1, 2022)

  The George Mason University hosted a webinar titled “Crypto and National Security: How to Validate American Innovation and Verify U.S. National Security.” Many financial technology officials participated, and shared their views on crypto benefits and regulation, as well as the digital yuan. Go to Article.