Bank of Korea: Will Cooperate With FSC and FSS to Develop Wholesale CBDC
Bank of Korea (BoK) revealed that it will collaborate with the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) to develop a wholesale CBDC. It is expected that the two entities will jointly release a CBDC usability test promotion plan in the coming weeks.
Lee Myung-soon, the first vice chairman of the FSS, stated that the Bank of Korea has been committed to researching CBDC-related technology.
Bank of Canada study highlights challenges to achieving financial inclusion with CBDCs
A Bank of Canada discussion paper has highlighted the challenges central banks face in creating a universally accessible central bank digital currency (CBDC) that boosts financial inclusion. The paper identifies three types of inclusion necessary for a universally accessible payment method: financial inclusion, digital inclusion and practical accessibility. The authors of the paper suggest that private financial institutions may not have an incentive to address the needs of those who are underserved. The challenge is in the delivery of services, rather than the nature of CBDC itself, the authors stated.
Russia to Use Digital Ruble in Latin America by 2025
Anatoly Aksakov, Chairman of the Financial Market Committee of the State Duma of Russia, stated that domestic companies will use the digital ruble, the country's CBDC, in Latin America no later than 2025.
The U.S. House of Representatives Financial Services Committee Will Approve an Amendment Bill to Ban the Application and Testing of Unapproved CBDC
According to reports, Patrick McHenry, chairman of the U.S. House Financial Services Committee, will approve two amended bills that prohibit the application and testing of unauthorized CBDC. One of the bills is the Digital Dollar Pilot Program Prevention Act, which prohibits the Federal Reserve from launching a CBDC pilot program without congressional approval.
Representative Tom Emmer Reintroduces Bill To Prevent Unelected Bureaucrats From Issuing CBDCs and Protect Financial Privacy
Representative Tom Emmer and 49 co-sponsors have reintroduced the "CBDC Anti-Surveillance State Act" in the US House of Representatives to prevent unelected bureaucrats from issuing a central bank digital currency (CBDC) and protect Americans' financial privacy. Emmer claims that President Biden is willing to compromise financial privacy for a surveillance-style CBDC.
Visa Executive: Visa Payments Will Involve Multiple Blockchain Networks, Stablecoins, CBDC, etc.
Cuy Sheffield, head of Visa's blockchain, said in a blog post on Wednesday that despite various flaws and issues, blockchain technology is similar to the early days of the Internet and is developing from obscurity to ubiquity. Sheffield believes that blockchain technology - in terms of efficiency, related costs, and usability - may mature in the next decade.
Chinese Central Bank Official Calls for Digital Yuan to be Available in All Retail Payment Scenarios
According to a senior official at the People's Bank of China, the digital yuan must be available for all retail payment scenarios, including wallet providers such as WeChat, Alipay, and commercial banks with mobile banking apps. Compliance requirements and relevant financial licenses must also be obtained. The use of QR code payment systems, which is already widespread in China, will be unified to achieve barcode interoperability.
Yes Bank integrates UPI with Reserve Bank of India CBDC app
Yes Bank has announced that it has enabled interoperability with the Unified Payments Interface (UPI) on the Central Bank Digital Currency (CBDC) application of the Reserve Bank of India (RBI). Users can seamlessly transact by scanning any UPI-enabled QR code through the Yes Bank Digital Rupee application. The Yes Bank application marks the first integration of UPI with CBDC. <br>
RBC Analyst: The Federal Reserve May Take a Gradual Approach to CBDC Development
Analysts at the Royal Bank of Canada predict that the Federal Reserve will take a gradual approach in developing CBDCs (i.e. digital dollars). In the report released this week, Royal Bank of Canada analyst Atul Bhatia believes that the Federal Reserve may take a more cautious approach, rather than issuing mature retail and wholesale CBDCs. He said, "We believe that the Federal Reserve will continue to emphasize gradual technological improvements, rather than risking a transformation of payment infrastructure. Despite the hype surrounding CBDCs, we have seen many concerns regarding security, privacy, and governance, which we believe outweigh the theoretical efficiency gains." He added, "In the foreseeable future, commercial bank accounts and physical cash may still be at the core of the US financial infrastructure."
MiCA regulatory architect to lead plans for digital euro
European Parliament (MEP) stated on Wednesday that German parliamentarian Stefan Berger will lead the development of new legislation supporting the digital euro. Stefan Berger was the architect of the EU's milestone encryption law MiCA. It is reported that the European Central Bank has not yet officially decided whether to issue a CBDC, but has invested a lot of resources in technical planning.
