January 2022

• China Pilots Nationwide Blockchain Development Over Real-World Use Cases (January 30, 2022)

  The Cyberspace Administration of China (CAC) has undertaken an initiative to encourage the large-scale adaptation of blockchain technology in both business and governmental institutions. The initiative will include conducting blockchain pilots in many cities and companies and coordinating with regulatory departments. Go to Article.

• Chinese Food Delivery Giant Joins CBDC Efforts (January 28, 2022)

  Following in the footsteps of several tech enterprises like WeChat and JD.com, Chinese food delivery company Meituan has decided to embrace the retail testing of China’s CBDC and allow payments in digital yuan for their services. The digital yuan has experienced a massive growth in popularity, and a launch is expected at the Beijing Winter Olympics. Go to Article.

• The Fed's CBDC Report was Lame on Purpose (January 25, 2022)

  The US Federal Reserve has released a report detailing the potential for a digital dollar. The report is inconclusive and assumes the dollar’s supremacy, indicating a preference for regulation of cryptocurrencies rather than providing an alternative to them, like a CBDC. The Fed’s real-time payment system, FedNow, may give some of the benefits of a CBDC without the hassle. Go to Article.

• Russian Finance Ministry Official Calls for Crypto Regulation, Not Restriction (January 25, 2022)

  Ivan Chebeskov, a director within the Russian Ministry of Finance, has voiced his support to regulate crypto, rather than placing a blanket ban on crypto mining and trading. Chebeskov is also in support of a digital ruble. His views could indicate a shift in Russia’s anti-crypto attitude. Go to Article.

• Bank of Korea Concludes First Phase of CBDC Test (January 24, 2022)

  The Bank of Korea has finished its initial CBDC test (intended to study the basic functions of the currency) and plans to research additional functions later in their larger study of CBDCs. The bank will determine whether a CBDC could be effective on a larger scale after the second phase of the study. Switzerland, Israel, and China also continue to pilot their CBDCs. Go to Article.

• Digital Yuan Makes Big Strides (January 21, 2022)

  The digital yuan has experienced significant uptake as pilot tests and research for the CBDC continue into 2022. The People’s Bank of China (PBoC) originally introduced the digital yuan in July 2020 and continued to develop the digital currency in 2021. Go to Article.

• CasperLabs to Become Blockchain of Choice for the City of Fuzhou, China (January 21, 2022)

  CasperLabs, a blockchain software firm, has partnered with China’s Blockchain-based Service Network (BSN) to serve as the blockchain of choice for the Fuzhou city Chain. The partnership will allow BSN to benefit from CasperLabs’ scalability, security, decentralization, and open-permissioned blockchain (OPB) protocol. Go to Article.

• In Long-Awaited CBDC White Paper, Fed Flags Privacy, Financial Stability Risks (January 20, 2022)

  The Federal Reserve has released its white paper, and while it didn’t commit to developing a digital dollar, it did determine that a potential CBDC would be intermediated with private banks (rather than issued directly to consumers). The Fed also indicated their intent to protect consumers’ privacy while maintaining security. Go to Article.

• Federal Reserve Board Released Discussion Paper That Examines Pros and Cons of a Potential U.S. Central Bank Digital Currency (CBDC) (January 20, 2022)

  The Federal Reserve has released a report that discusses the and risks of a digital dollar as the first step in determining whether a CBDC could be implemented. Benefits include faster cross-border payments, while one notable risk is the threat a CBDC could bring to monetary stability. Go to Article.

• Iran Looking to Pilot a Central Bank Digital Currency (January 19, 2022)

  Suffering from the US’s economic sanctions, Iran has decided to develop a CBDC. The country is also pro-crypto as one of the first countries to legalize Bitcoin and issued 1,000 crypto mining licenses in 2020. CBDCs have interested many countries as China debuts its digital yuan (e-CNY). Go to Article.

• Dead on Arrival? How the Nigerian eNaira Has Fared Since Launch (January 19, 2022)

  Based on twitter responses to Timi Ajiboye (one of the founders of BuyCoins), it’s clear many feel disappointed by or are simply unaware of the eNaira. This may be accounted for by the Nigerian government’s failure to prep the markets and the consumers before the CBDC’s launch. Go to Article.

• China's Digital Yuan Notches $8.3 Billion in Transactions in 6 Months, Taking a Tiny Share of Payments (January 18, 2022)

  China’s digital yuan has reached a cumulative transaction amount of 87.56 billion yuan ($13.68 billion), a number that still falls far behind Ant Group’s Alipay despite Chinese government efforts. The digital yuan’s user rate, however, has increased faster than transaction volume. Go to Article.

• 70% of Jamaica Population to Adopt CBDC in 5 Years, Prime Minister Says (January 17, 2022)

  Following the Bank of Jamaica’s completion of their first CBDC pilot test in early January, Jamaican prime minister Andrew Holness predicts that over 70% of Jamaicans will be using the CBDC within five years after its rollout later in 2022. Holness hopes that the digital currency will help reduce banking costs and increase accessibility. Go to Article.

• China's Digital Yuan Wallets Swell but Usage Lags (January 17, 2022)

  As China promotes the digital yuan ahead of its launch at the Beijing Winter Olympics, usage of the CBDC slows despite the high download rate of digital yuan wallets. This lag is likely due to the digital yuan’s confinement to ten pilot cities and Chinese citizens’ preference of Alipay and WeChat Pay. Go to Article.

• A Solution Without a Problem? The 'Digital Pound' May be Dead in the Water (January 14, 2022)

  In a recent report, the House of Lords has criticized the Bank of England’s plans for a CBDC, stating that a digital pound might harm the country’s economic stability and privacy. The benefits to a CBDC are more limited in more developed countries, though pro-crypto economists argue that a CBDC could still help the UK. Go to Article.

• BIS, Swiss National Bank, SIX Exchange Complete Wholesale CBDC Trial (January 13, 2022)

  The Swiss National Bank (SNB), partnered with the Bank for International Settlements (BIS), is prepared to move into a third CBDC testing phase. While its unclear when or if a CBDC launch will occur, the project has a large support base in Switzerland. Go to Article.

• China Aims to Separate NFTs From Crypto via New Blockchain Infrastructure (January 13, 2022)

  Not wanting their ban on crypto mining and trading to harm the local NFT industry, China’s Blockchain-based Service Network (BSN) will create infrastructure to support the deployment of non-crypto NFTs. This credible, low-cost infrastructure is precisely what is needed to host the NFTs in China. Go to Article.

• US Rep. Tom Emmer Proposes Bill to Shape CBDC Plans (January 12, 2022)

  US Representative Tom Emmer has introduced a bill that prevents the Federal Reserve from issuing a CBDC to individuals, promoting a decentralized digital currency dissimilar to China’s approach. Emmer noted that accepting economic innovation was key to the dollar’s continued supremacy. Go to Article.

• Digital Yuan Wallet Ranks Among Most Downloaded Apps in China (January 12, 2022)

  During the week of its release, the digital yuan (e-DNY) wallet ranked among the highest of China’s most downloaded apps, exceeding that of competitor WeChat. The app can currently only be used in the People’s Bank of China’s (PBOC) ten pilot cities, though digital yuan can be spent through other payment apps. Go to Article.

• Powell Hints at Fed's Inflation Moves, CBDC Paper, Ethics Rules in Hearing (January 12, 2022)

  Federal Reserve Chair Jerome Powell updated the Senate Banking Committee at a hearing, stating that the Fed may increase interest rates to shrink inflation levels to pre-pandemic levels. Further, Powell announced the Fed has almost completed an overhaul of its ethics rules. Finally, the chair reported the Fed’s white paper on CBDCs would be released within weeks. Go to Article.

• China-Backed BSN to Released Infrastructure This Month to Support NFTs: Report (January 13, 2022)

  China’s Blockchain Services network (BSN) will release infrastructure to support NFTs, which are legal in China unlike private cryptocurrencies. The infrastructure will enable users to build apps or portals to manage NFTs. BSN’s creator Red Date Technology predicts that NFTs will be widely used in China within the next five years. Go to Article.

• Fed's Lael Brainard Invites Congress to Choose Whether to Compete with China's Digital Yuan (January 13, 2022)

  Lael Brainard, member of the Federal Reserve’s board of governors, stated that Congress would need to decide whether to introduce a CBDC. Brainard is in favor of the release of a digital dollar to compete with China’s digital yuan and private cryptocurrencies. Go to Article.

• China is Pushing for Broader Use of its Digital Currency (January 11, 2022)

  The People’s Bank of China (PBoC) has piloted and promoted the digital yuan in a variety of ways, and Chinese authorities are now encouraging more widespread use of the CBDC. The bank has partnered with WeChat and Alipay, two popular online payment systems in China, though it is still questionable whether Chinese citizens will use the digital yuan on a regular basis. Go to Article.

• More Central Banks Announce CBDC Plans to Defend Monetary Home Turf vs Cryptos (January 4, 2022)

  Central banks across the world (notably Mexico and Jamaica) are undergoing CBDC development in order to maintain control of their monetary supply. China has the most advanced prototype with their digital yuan while the US stagnates in the research phase with no concrete timeline. Go to Article.

• China's Digital Yuan App is Getting Ready for the Beijing Winter Olympics (January 4, 2022)

  The People’s Bank of China (PBoC) has developed and released its digital yuan app, available for use for residents in pilot cities. China will likely release the digital yuan at the Beijing Winter Olympics where the CBDC can be used by foreign visitors, though boycotts of the games could affect its launch. Go to Article.

• China's CBDC 'Dress Rehearsal' Sets Stage for Other Central Banks (January 4, 2022)

  The People’s Bank of China (PBoC) has concluded its second digital yuan pilot program and will likely soon launch the CBDC. The digital yuan doesn’t have transaction fees unlike its competitors Alipay and WeChat Pay, a feature that might also help force out foreign companies. China’s efforts will likely influence other country’s CBDC developments. Go to Article.

• Jamaica Completes CBDC Pilot, Expects Rollout Later This Year (January 3, 2022)

  The Bank of Jamaica (BOJ) has completed its eight-month CBDC trial with help from technology firm eCurrency Mint and the National Commercial bank (NCB), intending to release its CBDC within the first quarter of 2022. The NCB assisted in service testing and minting the CBDC, as well as onboarding 57 customers. Go to Article.

• Macau Watchdogs Will Double Down on Digital Yuan (January 2, 2022)

  Macau’s casino owners will likely be forced to become testing sites for the digital yuan in exchange for their renewed casino licenses. Macau is an ideal city to test the CBDC because of its location and lucrative gambling industry. Go to Article.