March 2021

• China’s Blockchain Five-Year Plan (March 12, 2021)

  In mid-March, China released their five-year development plan. Within the plan, China outlined their commitment to staying ahead of the curve with blockchain technology, despite the countries bans on cryptocurrency exchanges and initial coin offerings. The plan commented on the country’s ongoing scheme to develop a central bank digital currency as well as its usage of digital biometric hardware wallets for the digital yuan. Go to Article.

• Digital Yuan Tested on E-Commerce Platforms (March 19, 2021)

  As part of a push to internationalize the yuan, China has been testing its digital currency on trading platforms around the world where it can be freely traded with other fiat currencies. One such platform is Inthanon-LionRock (Note), which is a central bank digital currency project for cross-border payments initiated by the Hong Kong Monetary Authority and the Bank of Thailand. Eight Thai banks and two Hong Kong banks, including HSBC, participated in the Note project and tested the feasibility of digital currency-based transactions between Thailand and Hong Kong. Go to Article.

• Ripple Pilots CBDCs Private Ledger (March 5, 2021)

  Payment protocol Ripple is piloting a private version of the public and open-source XRP ledger for the issuance of central bank digital currencies (CBDCs). The same blockchain that powers its public XRP Ledger (XRPL) would also power the CBDC Private Ledger. Ripple stated interoperability as one of the features of Private Ledger; it will be able to connect with existing financial infrastructure globally, as well as other CBDCs and digital currencies. Furthermore, the Private Ledger will ensure secured and fast transactions at low-costs while handling tens of thousands of transactions per second. Go to Article.

• China Expands Testing of Digital Yuan with Department Stores (March 14, 2021)

  In mid-March, the New World City and New World Daimaru Department Store in Shanghai began testing the Digital Yuan. Together, they handled thousands of digital yuan transactions in a weekend alone. Major Chinese banks including the Bank of Communications and China Construction Bank participated in the trial by providing retailers with virtual coupons to reward customers paying with the digital yuan. As Shanghai continues to accelerate its digital yuan pilots, the city will likely feature the new payment option at all merchants on Nanjing Pedestrian Road Mall during the upcoming shopping season in early May, the report states. Go to Article.

• Bank of Russia with Start Testing their CBDC in 2022 (March 11, 2021)

  Bank of Russia deputy governor Alexey Zabotkin said that the bank is planning to complete a prototype digital ruble by the end of 2021 and it is planning to start pilots for the CBDC in 2022. Zabotkin stated that the prototype will not support “real transactions” but would rather serve as a starting point to build the ecosystem on. Go to Article.

• Jamaica to Release CBDC in 2021 (March 17, 2021)

  According to Nigel Clarke, Jamaica’s minister of Finance, Jamaica plans to pilot their CBDC by December and officially launch it in 2022. Clarke said businesses will be able to make payments and store value at no cost. Furthermore, customers will be able to do business with others directly from their mobile phones, with or without a bank account. Go to Article.

• South Korea Demos CBDC Platform (March 10, 2021)

  South Korea-based Shinhan Bank has built a pilot program for a potential central bank digital currency (CBDC) with assistance from LG CNS. The platform has divided the issuance of the CBDC into two categories, including a general fund for individuals alongside a disaster support fund for businesses and local government. It is unknown as of now if the digital won will be distributed directly to consumers or through an intermediary like Shinhan Bank. Go to Article.

• Key Biden Staffers Meet with Blockchain Advocates (March 5, 2021)

  U.S.-based crypto advocacy group, the Blockchain Association, is lobbying key figures in the Biden administration to advocate for more favorable regulations. The group plans on speaking with high-ranking Whitehouse Officials, including Treasury Secretary Janet Yellen, Deputy Secretary nominee and former BlackRock executive Wally Adeyemo, along with representatives of the Treasury Department. Despite her apparent hostility toward Bitcoin, Yellen has expressed openness to centralized DLT, with the secretary stating a digital dollar could offer “faster, safe, and cheaper payments” than existing fiat currency last month. Go to Article.

• Canada Launches First Stablecoin Backed by Bank Deposits (February 25, 2021)

  VersaBank, a North American banking leader in B2B digital payment solutions, announced its plans to launch VCAD, the “world’s first digital currency backed by a North American bank deposits”. The stablecoin aims to offer users a channel of commerce while offering the highest levels of stability and security on its system. At launch, VCAD will be issued to financial intermediaries working with VersaBank in exchange for Canadian dollar deposits. These companies will, in turn, offer the stablecoin to its users and businesses. Go to Article.

• Bank of Japan Plans CBDC (March 17, 2021)

  Haruhiko Kuroda, governor of the Bank of Japan, stated that the bank would begin “preparing thoroughly” for a future that may include a State-backed digital currency. There was no confirmation from Kuroda of any concrete plans to issue a central bank digital currency or CBDC. However, he emphasized that the bank must be prepared to launch its own virtual currency if required. Go to Article.

• Bank of Thailand will Regulate Asset-Backed Stablecoins (March 19, 2021)

  After issuing a warning against a Baht-pegged stablecoin produced by a South Korea-based firm, Thailand plans to introduce a series of regulations for stablecoins in 2021. Currently, the Bank of Thailand plans to regulate asset-backed and foreign currency-backed stablecoins and algorithmic stablecoins, but not decentralized cryptocurrencies such as Bitcoin (BTC) or Ether (ETH). For these, the BoT stated that investors can weigh their own risks. Meanwile, the Bank of Thailand has been working with the Hong Kong Monetary Authority, the Central Bank of the United Arab Emirates and the Digital Currency Institute of the People’s Bank of China on a central bank digital currency prototype using distributed ledger technology. Go to Article.

• The United Arab Emirates’ Sustainable Blockchain (March 6, 2021)

  The COVID-19 pandemic has revealed the need for sustainable digitization of the economy, and the United Arab Emirates is accepting the challenge. At the Abu Dhabi Sustainability Week Summit 2021, the UAE discussed, among other things, the future of blockchain technology, specifically in the context of its environmental impact. One of these projects include SustVest, a crowd-investing blockchain-based platform that lets people invest in solar projects and earn returns from consumers who use their funding to install solar panels. Go to Article.

• Roxe Launches CBDC Payments (March 2, 2021)

  Roxe Instant Settlement Network will allow monetary regulators to issue, manage and distribute CBDCs across the globe. Additionally, the CBDCs can interoperate with other digital fiats and can be used by the other participants on the network. Moreover, the Roxe network provides a pre-built infrastructure to connect with central, domestic and foreign bank members in order to send, receive and exchange digital currency. Go to Article.

• India Examines Pros and Cons with CBDC (March 1, 2021)

  In late February, the Central Bank of India released a report which examined the pros and cons of releasing a Central Bank Digital Currency. The report found that CBDCs can provide many benefits for individuals, such as allowing the Central Bank to deliver ‘’helicopter money’ directly to an individual’s bank account. Helicopter money refers to distributing large sums of money directly into consumers’ bank accounts to support the economy during times of stress, such as the recent coronavirus crisis. The report also cautioned that a CBDC could lead to banking sector disintermediation. Go to Article.

• CBDCs Must Coexist With Cash (March 18, 2021)

  According to Jerome Powell, the Federal Reserve Chair, central bank digital currencies will need to coexist with cash and other types of money in a flexible and innovative payment system. Furthermore, in the report, Powell comments that improvements in the global payments system will come not just from the public sector but from the private sector as well. Powell added that the Fed Board of Governors is conducting experiments on CBDCs along with the Federal Reserve Bank of Boston, which is working researchers at the prestigious Massachusetts Institute of Technology (MIT). Despite fears that many governments will use the centralized currencies in order to increase financial surveillance, early signs show that the United States will favor privacy in its development. Go to Article.