Israel's Central Bank Outlines Scenarios for Issuing a Digital Shekel
The Bank of Israel is monitoring scenarios that could influence a decision to issue a digital shekel, including the widespread adoption of stablecoins. The central bank has not yet made a decision on issuing a central bank digital currency (CBDC), but a 21-page report outlining potential scenarios notes that the Bank of Israel must be prepared to issue a digital shekel if certain variables support it. These variables include a decline in cash usage, significant use of stablecoins, competition in the domestic payment system, and significant technological developments in payment systems. The report also notes that a decision by the US or the European Union to issue CBDCs could influence the Bank of Israel's decision.
Bank Of Israel Issuing “Digital Shekel” CBDC
The Bank of Israel is planning to issue a central bank digital currency (CBDC) called the "SHAKED" digital shekel, according to a press release from the central bank's steering committee on the potential issuance of a digital shekel. While the decision has not been finalized, the bank cited factors including declining cash transactions, stablecoin adoption, and competition in the domestic payment system as reasons supporting the issuance of a CBDC. The Bank of Israel has been exploring the potential of retail CBDCs in the "Icebreaker" project led by the Bank for International Settlements (BIS) Innovation Hub. The G20 nations are also working on improving cross-border payments with CBDCs and discussing a common framework for regulating crypto.
China’s CBDC Registers Housing Aid Firsts
China's central bank digital currency (CBDC), the digital yuan, has found new usage cases in the fields of housing aid and public resource transactions. The Jiangsu Provincial Government Affairs Office has begun using the CBDC in 10 new "application scenarios," while banks and local authorities in Nanjing have begun the "integrated use of the digital yuan" in the mandatory mutual aid platform housing provident fund. Authorities have issued a set of guidelines that will allow market participants to learn how to use the CBDC in their housing provident fund operations, settlement, financing, and accounting. The digital yuan has been used in over 5,500 transactions, paying for settlements worth around $204 million. The CBDC is also being used to pay experts for state-run projects, settlement fees for state-owned property rights transactions, and state-owned assets rental deposits.
G7 Countries Discuss Crypto Regulation and Support for Developing Nations' Central Bank Digital Currencies
The G7 countries are discussing tighter cryptocurrency regulation and ways to assist developing nations in introducing central bank digital currencies (CBDCs) consistent with international standards. Masato Kanda, Japan's Vice Minister of Finance for International Affairs, stated that the discussions will address challenges posed by digital technology, including cyber-security, misinformation, social and political divides, and destabilizing financial markets.
Japan To Push CBDCs, Crypto Regulation As Top Agendas for G7
Japan is set to push for the regulation of central bank digital currencies (CBDCs) and cryptocurrency at the upcoming G7 summit. Japan is taking a proactive stance on digital currencies, and has been working to develop its own CBDC, known as the Digital Yen.
Crypto Evening Briefing: Crypto Regulation by Enforcement Is ‘Really, Really Bad,’ Says Binance CEO
Binance CEO Changpeng Zhao has said that regulation, rather than lack of clarity, is a better option for the crypto industry. However, he added that regulation by enforcement is bad.
420,000+ Merchants in Changsha, China Accept CBDC Pay
More than 420,000 merchants in the Chinese city of Changsha now accept payments in the digital yuan, China’s central bank digital currency (CBDC). This figure has increased from 300,000 merchants in February this year, and the city claims the figure only comprises bricks-and-mortar businesses. The city also stated that 22 million personal CBDC wallets and 800,000 “public” wallets have been opened in the city since the pilot began, with a total of 62 million transactions made, valued at over $1.4 billion. The PBoC has begun cross-border pilots with Hong Kong and Macau, which could allow the digital yuan to find usage cases in international markets.
G-7 Will Focus on Helping Developing Nations Introduce CBDCs
The Group of Seven (G-7) nations have announced their intention to prioritize assistance to developing countries in introducing their own central bank digital currencies (CBDCs). Speaking at a seminar in Washington DC, Japan's senior financial diplomat, Masato Kanda, noted the challenges posed by fast-moving digital technologies and emphasized the need for appropriate governance and transparency. The G-7 plans to accelerate discussions on crypto regulation ahead of a meeting of finance ministers and central bankers in May, with a focus on increasing business transparency and consumer protection. Kanda also referenced the collapse of the FTX crypto exchange and the need for consistent regulation across borders. Finally, the G-20 has tasked the Financial Stability Board and the International Monetary Fund with producing a synthesis paper on global crypto rules by September or October.
G7 to Address CBDC Implementation in Developing Countries and Debt Vulnerabilities during Japan's Presidency
G7 nations are set to discuss the optimal approach to assisting developing countries in implementing central bank digital currencies (CBDCs) that adhere to appropriate international standards, according to Japan's Finance Ministry Treasurer, Makoto Kanda. As part of Japan's G7 presidency this year, this topic will be a critical focus in addressing global challenges stemming from the rapid evolution of digital technologies.
Ripple, Montenegro Sign Deal on Project for Unspecified National Digital Currency
The Central Bank of Montenegro has signed an agreement with Ripple to develop a strategy and pilot program for a Montenegrin digital currency in the form of a central bank digital currency or a stablecoin. The project will go through several stages, including identifying the practical application of a digital currency or national stablecoin. A sandbox stage is planned to put the future digital currency into circulation under controlled conditions. The project will begin this month. Ripple has multiple CBDC projects ongoing around the world and is in dialogue with dozens of central banks globally.
