December 2021

• Will US Regulators Shake Stablecoins into High-Tech Banks? (December 31, 2021)

  The US considers stablecoin regulation prompted by collateralization, DeFi, a generally unregulated financial environment, and threat to existing fiat currencies. There are several approaches being considered, such as FSOC regulation and deposit insurance requirements, but fear of a stablecoin run disincentivizes the latter. Go to Article.

• Shanghai Includes Metaverse in Its Development Plan (December 31, 2021)

  Shanghai intends to include a metaverse in its five-year development plan for the electronic information industry. This metaverse could be used in business and social capabilities. The concept of the metaverse has grown in popularity not just in China, but worldwide. Go to Article.

• Mexico Plans to Issue a CBDC by 2024, Government Confirms (December 30, 2021)

  Joining Brazil and Peru, the Central Bank of Mexico (Banxico) has announced its plans to release a CBDC by 2024. Banxico governor Victoria Rodriquez Ceja stated that the bank has recognized the need to create a CBDC among cryptocurrency crackdowns. Go to Article.

• Reserve Bank of India’s Acceptance of Digital Rupee Highlights Privacy Concerns (December 29, 2021)

  The Reserve Bank of India has stated that a digital rupee will include anonymous transactions, a promise that the People’s Bank of China (PBoC) has also made regarding their digital yuan. However, this claim has questionable validity. If the US chooses to adopt a digital dollar, privacy concerns would need to be addressed. Go to Article.

• As China evangelizes Digital Yuan (e-CNY) During the Winter Olympics, Concerns Remain (December 28, 2021)

  China intends to use the Beijing Winter Olympics as a platform to promote their digital yuan to an international audience. However, the CBDC is still being piloted and hasn’t been tested on a large scale yet, unlike private cryptocurrencies like Bitcoin. Further, concerns have been raised that the Chinese government’s complete control over the digital yuan might threaten users’ privacy. Go to Article.

• From eNaira to eHryvnia, a Caribbean Fintech Develops CBDCs Around the World (December 20, 2021)

  Bitt, a Barbadian fintech firm, developed the eNaira for Nigeria and has partnered with Ukraine and the Stellar Foundation to create a digital hryvnia. CEO of Bitt Brian Popelka states that the eNaira is distinct from stablecoins or cryptocurrencies because it’s a fiat currency. Popelka says Bitt plans to help Nigeria develop future features of the eNaira. Go to Article.

• CBDC Tracker Shows U.S. Falling Further Behind (December 18, 2021)

  The Atlantic Council’s CBDC tracker shows that while 87 countries are exploring/developing a CBDC, the Federal Reserve has stagnated in the research phase. Further, of the four countries with the largest banks, the US is the only one not piloting their CBDC. However, US authorities maintain there is no need to rush development. Go to Article.

• Kazakhstan's Central Bank Reports Results on CBDC Pilot Project (December 16, 2021)

  The National Bank of Kazakhstan (NBK) is considering implementing a retail CBDC and has tested how a digital tenge could benefit cross-border transactions. Based on these tests, the NBK will consider expanding this CBDC pilot to assess more financial scenarios and propose regulations. Go to Article.

• Russia to Decide Between Blanket Crypto Ban and Legalizing Exchanges in 2022 (December 16, 2021)

  A Reuters report (aligned with remarks made by Russian President Vladimir Putin) suggested that Russia plans to ban cryptocurrencies in favor of a CBDC. Chairman of the Duma Committee on Financial Markets Anatoly Aksakov, however, states that Russia is considering making crypto mining and trading legal but regulated to insure transparency. Go to Article.

• The Banque de France Has Successfully Completed the First Tranche of its Experimentation Programme in Central bank Digital Currency (December 16, 2021)

  The Banque de France with partner HSBC has concluded the final experiment of its programme to study the use of a CBDC in interbank settlements. The experiment itself conducted several transactions across different blockchain environments using a CBDC, testing interoperability between different platforms. Go to Article.

• HSBC and IBM Create successful Multi-Ledger CBDC Demo (December 16, 2021)

  HSBC and IBM have successfully conducted a CBDC test overseen by the Banque de France involving an advanced token and digital wallet settlement in a cloud environment. Interoperability between different ledgers and technologies is essential to a potential CBDC’s success, according to managing director of GFX eRisk Mark Williamson. Go to Article.

• Chinese Province Uses Blockchain Technology to manage Prisons, Mining Sweep Continues: Blockheads (December 14, 2021)

  Chinese province Jiangsu has successfully used blockchain technology to manage 21 prisons and hopes to expand this trial to create an integrated online platform to include all the province’s prisons. Meanwhile, both the Yunnan and the Zhejiang province are taking efforts to curb illegal crypto mining and trading. Go to Article.

• South Africa's Financial Regulator Plans to Introduce Framework Aimed at Protecting Vulnerable Crypto Investors: Report (December 10, 2021)

  South Africa’s Intergovernmental Fintech Group announced in June it would be creating a crypto framework to regulate digital currencies, despite the group’s previous policy of noninterference. Commissioner of South Africa’s Financial Sector Conduct Authority Unathi Kamlana now says that this framework will be focused on protecting customer security. Go to Article.

• China Releases New Digital Yuan Coupons Ahead of 2022 Olympics (December 10, 2021)

  In anticipation of China’s digital yuan rollout at the Beijing Winter Olympics, several state-owned banks have issued digital yuan coupons in Beijing. This effort is part of a larger promotion of the CBDC by the People’s Bank of China (PBoC). Go to Article.

• Russia Prioritizes CBDC Ruble as Overall Crypto Outlook Seems Positive (December 10, 2021)

  Many private crypto companies (most noticeably Bitcoin) have moved into Russia and are benefitting from the country’s favorable crypto mining conditions. Russia’s regulators are divided on how to handle this burgeoning market. While Russia’s Central Bank has announced plans to develop a digital ruble, questions have been raised about security issues. Go to Article.

• Kazakhstan to Decide Whether to Launch CBDC by Late 2022 (December 9, 2021)

  Kazakhstan, one of the world’s largest Bitcoin mining countries, is pilot testing a prototype CBDC with local and international financial companies. The country will make an official decision on whether to move forward with CBDC launch in December 2022. Go to Article.

• Australian Reserve Bank's 'Project Atom' CBDC Research Finds Numerous Benefits (December 9, 2021)

  The Reserve Bank of Australia (RBA) has completed its two year “Project Atom”, an initiative intended to research a possible wholesale CBDC. RBA’s report on the project concludes that a wholesale CBDC partnered with DLT technology could increase transaction speed but might pair poorly with blockchains. Go to Article.

• China Pilots Connection Between Digital Yuan and Hong Kong Fast Payment System (December 9, 2021)

  China plans to connect its digital yuan to Hong Kong’s Fast Payment System, raising concerns in the US that the digital yuan may help evade sanctions and replace the dollar as the world’s reserve currency. It is essential that the US’s inefficient financial system infrastructure be revised to meet such competition. Go to Article.

• Digital Euro, Swiss Franc Trials Were Successful, Central Banks Say (December 8, 2021)

  Project Jura, a cross-border CBDC trial conducted by European banks, has ended successfully and proven that a digital euro and Swiss franc can be used in foreign exchange transactions and as tokenized assets. However, the central banks maintain that the trial didn’t mean CBDCs would be issued. Go to Article.

• How a Digital Yuan Threatens China Banks, Alipay and WeChat Pay (December 6, 2021)

  A digital yuan could diminish the roles of Chinese commercial banks, since the People’s Bank of China (PBoC) would have ultimate control over the currency. Further, Alipay and WeChat Pay will likely lose market share to the CBDC and their consumption may fall behind the digital yuan’s. Go to Article.

• NY Fed Leans Into CBDC, But Experts Question Its Benefit (December 3, 2021)

  The Federal Reserve Bank of New York has created the New York Innovation Center (NYIC) intended to research and release new financial technology products, including a possible CBDC. While a report from NY Fed and the BIS states that a CBDC could provide many benefits, others argue that a digital dollar would risk users’ personal information. Go to Article.

• Digital Dollar Needs Broad Consensus Among Authorities, Says US Treasury Secretary (December 3, 2021)

  Following reports that the Federal Reserve is researching a digital dollar, US Treasury Secretary Janet Yellen says that a CBDC would require a governmental consensus. While some US authorities call for urgency in implementing a digital dollar as China pilots their digital yuan, others argue that there is no need to hurry. Go to Article.

• NFTs on China's BSN Migrate to OpenSea to Tap Global Market (December 1, 2021)

  Non-fungible tokens (NFTs) have been transferred across four blockchains from China’s Blockchain-based Service Network (BSN) to the OpenSea marketplace. This achievement reveals many possibilities for interchain technology in the context of global commerce. Go to Article.