May 2022

• China's State-Backed BSN Pushed New Public Blockchain Network Unlinked to Cryptocurrencies for International Markets (May 24, 2022)

  China’s Blockchain-based Service Network (BSN) will release the BSN Spartan Network, a new blockchain intended for international markets that will not involve cryptocurrencies. The Spartan Network is BSN’s first international initiative and transactions will be made using US dollars, since open blockchains are banned in mainland China. Go to Article.

• Wall Street Says a Fed Digital Dollar Spells Destruction for Banks (May 23, 2022)

  Responding to the Federal Reserve’s CBDC white paper, Wall Street bankers predict that a CBDC would undermine the existing financial system by increasing the cost of funding in the banking sector. The Fed board hasn’t decided on whether to proceed with a digital dollar, and congress has yet to produce a CBDC bill that gains traction. Go to Article.

• Department of Commerce Seeks Public input on Digital Currency Regulations (May 23, 2022)

  Tasked with orders from Biden to innovate the US’s financial framework, the US Department of Commerce will publish 17 questions through the International Trade Administration. The questions will pertain to digital asset industry issues including CBDCs, VASPs, and mining. The Department of Commerce hopes input on these questions will help stakeholders shape the industry. Go to Article.

• Chongqing Reports US$43 Mln Digital Yuan Trading Volume in Debut Month (May 19, 2022)

  China municipality Chongqing has experienced a total of 288 million yuan ($43 million) in digital yuan trading volume with 1.1 million digital yuan wallets opened. This is significantly less than Jinhua, a digital yuan pilot city. Go to Article.

• Banks Explore Tokenizing Liabilities with Eye Toward Gains in Instant Settlement & Risk Management (May 19, 2022)

  Banks and distributed ledger technology (DLT) companies are exploring ways to bring regulated liabilities onto a blockchain network. This network would ideally mint, burn, and transfer tokens to achieve real-time settlement between customers of any institution. Central banks, commercial banks, and network users would all benefit from this technology. Go to Article.

• S. African Central Banks Eyes Digital Rand to Cut Cross-Border Payment Costs (May 18, 2022)

  The cost to transfer a payment from South Africa to another country is currently 13% of the transaction. A digital rand would lower these cross-border payments, but South Africa has only conducted preliminary experimentation in digital currencies, so a CBDC is probably several years away. Go to Article.

• Chile Halts CBDC Plans till End of 2022 for More Analysis (May 12, 2022)

  The Central Bank of Chile has postponed tests of a Chilean peso, stating that the bank needs more time to research benefits and risks of a potential CBDC. Chile has already expressed reservations about crypto adaptation and plans to make various efforts to research CBDCs and digital currencies before proceeding with a Chilean peso. Go to Article.

• Report: Tanzania Closer to Launching a CBDC (May 12, 2022)

  Governor of Tanzania’s central bank Florens Luoga states that Tanzania is preparing for the launch of their CBDC. Luoga added that one of these preparations includes sending Tanzanian officials to countries with more developed CBDCs, such as Nigeria. Go to Article.

• Leaked Report: South Korea to Establish Crypto framework by 2024 (May 12, 2022)

  A leaked South Korean governmental document shows that the administration plans to introduce the Digital Asset Basic Act (DABA) within the following year. The act will expand existing crypto infrastructure and institutionalize nonfungible tokens. South Korea may also develop a CBDC. Go to Article.

• Bank of Israel Claims 'Public Support' for its CBDC Project (May 11, 2022)

  The Bank of Israel has reported that public feedback on their CBDC research is largely supportive. The public believes that a CBDC would encourage competition in the payments market, but is still wary of potential privacy issues. Go to Article.

• Report: Nigerian CBDC Wallet Update to Enable Utility Payments, USSD Functionality to Be Added (May 10, 2022)

  The eNaira’s wallet app will be updated to allow users to pay for utilities with the Nigerian CBDC. The Central Bank of Nigeria also initially planned to add USSD functionality to the wallet, which would allow non-account holders to use the eNaira. However, USSD functionality has yet to be implemented. Go to Article.

• IMF recommends the Bahamas 'Accelerate Its Education Campaigns' on CBDC (May 9, 2022)

  The International Monetary Fund (IMF) has recommended that the Bahamas initiate regulation and education in relation to their CBDC, the Sand Dollar. The Bahamas and Nigeria are the only two countries who have officially launched CBDCs. Go to Article.

• Japan's Quest for CBDC Enters Phase 2; What's Next? (May 9, 2022)

  The Bank of Japan has initiated its second test stage of its digital Yen, which will promote financial stability within the context of CBDCs. Japan will adopt a CBDC model similar to Sweden’s, preferring to take a slower and more detail-oriented approach rather than immediately launching large pilot programs. Go to Article.

• China Digital Currency: Leading Mobile Payment Apps Alipay, WeChat Pay Install New Features to Help Widen e-CNY Roll-Out (May 6, 2022)

  Alipay and WeChat Pay have installed features to support the digital yuan rollout. This move reflects Big Tech companies’ commitment to promote the digital yuan, seen also in Meituan’s acceptance of digital yuan payments. Go to Article.