Republican Senators Introduce Legislation to Block CBDC in the US Over Privacy Concerns
Republican senators have introduced a new bill called "The CBDC Anti-Surveillance State Act" aimed at preventing the introduction of a central bank digital currency (CBDC) in the U.S. They argue that the Biden administration is eager to infringe on citizens' privacy by surveilling their personal spending habits. This is not the first time Republicans have tried to block the introduction of a CBDC. The Federal Reserve is currently only in the basic research phase and would require signoff from the White House and an authorizing bill from Congress before moving forward.
Deloitte survey: African institutions cool on crypto. CBDC benefits evolve
A Deloitte survey of African financial institutions found a marked cooling in attitudes towards cryptocurrencies by banks, insurers and other institutions. Only 30% see an opportunity, down from 63% the previous year. However, the previous survey was just before the FTX crypto exchange collapsed. The latest was between August and October last year, before the recent uptick in activity.
ECB: CBDC will not have negative impact on banks
Three senior executives from the European Central Bank (ECB), including board member Piero Cipollone, stated that retail central bank digital currencies (CBDCs) will not have the negative impact on banks that many have predicted.
Donald Trump Warns of the Dangers of Artificial Intelligence and Deepfakes
Donald Trump, the former US President and leading Republican candidate, expressed his concerns about the dangers of artificial intelligence (AI) in an interview with Fox Business. He cited the potential misuse of deepfakes, which can create false product endorsements and even impact warfare. Trump called for urgent action to be taken to address the issue, stating that AI is "maybe the most dangerous thing out there of anything because there is no real solution." He also criticized CBDCs and accused Jay Powell, the chair of the Federal Reserve, of being "political."
Reserve Bank of India Takes Cautious Approach to Digital Rupee Development Amid Privacy Concerns and No Timeline for Retail CBDC Implementation
The Reserve Bank of India is carefully developing its digital rupee and exploring technology solutions to address privacy concerns. While the central bank may not object to a reduction in taxes on crypto, it is not their responsibility to legislate taxes. The RBI has achieved a significant milestone of one million transactions in a day for its retail CBDC pilot program, with the assistance of banks depositing employee funds in CBDC. Additionally, the central bank is searching for technological solutions to address privacy concerns in CBDC usage, and a privacy legislation is not the only option. India's finance ministry has decided against reducing taxes on cryptocurrency, including the 1% tax deducted at source on every transaction. Despite the industry's push for a tax reduction, a recent think tank study suggested a 0.01% tax instead of the current 1%. The Reserve Bank of India remains opposed to cryptocurrencies, with Governor Shaktikanta Das stating that India cannot afford the risk from crypto. However, startups may have the opportunity to participate in the RBI's CBDC pilots in the future.
Governor of the Central Bank of Russia: The Central Bank of Russia is discussing the possibility of using central bank digital currency as a payment method in foreign trade
Elvira Nabiullina, the head of the Russian Central Bank, said that the Russian Central Bank is discussing the possibility of using central bank digital currency as a payment method in foreign trade. Nabiullina said that although Russia opposes the use of cryptocurrency payments in domestic transactions, the country is open to the idea of using cryptocurrency in foreign trade.
Belarus plans to build a CBDC platform on Hyperledger Fabric and is hiring developers
Belarus plans to develop a blockchain platform for its central bank digital currency (CBDC). The state-owned Bank Technology Center began building the CBDC platform in January and is now actively recruiting developers. The platform will be built on the open-source Hyperledger Fabric blockchain. The Bank Technology Center is recruiting backend developers who are familiar with Hyperledger Fabric and Linux and have experience creating smart contracts. <br>
UK's Approach to Privacy Concerns in Digital Pound Consultation Praised by Experts
The results of the U.K.'s digital pound consultation were released on Thursday, with privacy being a major concern. Experts believe that the proposed platform model and legislation could address these concerns effectively. The U.K.'s approach to privacy in relation to the digital pound has been praised by industry insiders. While many responses to the consultation welcomed the proposed design, privacy was a key issue raised by respondents. The government has committed to consulting further with the public before making a decision on the digital pound's future.
UAE conducts first digital dirham transfer via mBridge CBDC platform
The Central Bank of the United Arab Emirates (UAE) conducted its first cross-border digital dirham transfer using the mBridge Central Bank Digital Currency (CBDC) platform on January 29th. According to Gulf News, this cross-border CBDC transfer of 50 million dirhams ($13.6 million) was sent to China using the multi-CBDC mBridge platform.The mBridge project was launched in 2021 by the central monetary authorities of China, Hong Kong, Thailand, and the UAE in collaboration with the Bank for International Settlements (BIS). This is the only international partnership involving China. The project completed its pilot in September 2022 and will be launched for commercial use in September 2023, one year later. The mBridge platform has already onboarded multiple commercial banks from each participating member country to engage in infrastructure and technology-related work.
Japan will resolve the legality issue of CBDC issuance in the third quarter of 2024
The Bank of Japan (BoJ) and the Japanese government held their first official meeting to discuss central bank digital currency (CBDC). As reported by local TV channel NHK on January 26th, the government and the Bank of Japan agreed to resolve legal issues related to the issuance of digital yen in the spring of 2024. However, neither the Bank of Japan nor the government has officially confirmed the launch of digital yen, and any decision will be made no earlier than after a "national discussion" in 2026. In December 2023, the Bank of Japan saw a report from a Ministry of Finance expert group recommending the "immediate" issuance of digital yen. The experts decided that the Japanese CBDC should coexist with cash and the Bank of Japan must limit the storage of potential personal data to a minimum. The Bank of Japan completed the second phase of CBDC testing in May 2023. The test ran for a year, involving 100,000 users and 5 intermediaries, with a load of 500 transactions per second and 3,000 transactions. The experiment was declared successful, and the Bank of Japan continues its scheduled CBDC pilot project, which should examine the "end-to-end process" and further connections with external systems.
