Tanzania ‘Cautious’ on CBDC Adoption After Initial Research
Tanzania's central bank says it is still considering the introduction of a central bank digital currency (CBDC) but will be a taking "phased, cautious and risk-based approach" after identifying several challenges that could impact its implementation. According to a Jan. 14 public notice from The Bank of Tanzania, since its 2021 announcement about a possible CBDC rollout, the East African country formed a multidisciplinary technical team to explore the risks and benefits of CBDCs. The bank revealed its team has conducted research looking into different types of CBDCs, models for issuance and management and whether it could be token-based or account-based. (Cointelegraph)
The Fed Will Keep Focusing on Crypto — Fed Governor Says 'We Do Not Want to Hinder Innovation
Federal Reserve Governor Michelle Bowman says while “cryptocurrency activities can pose significant risks,” the Fed does not want to “hinder innovation.” She added: “By inhibiting innovation, we could be pushing growth in this space into the non-bank sector, leading to much less transparency and potential financial stability risk.” (Bitcoin.com)
China Counts CBDC in Monetary Base Supply for First Time
For the first time ever, the People’s Bank of China (PBOC) has included its central bank digital currency (CBDC) in official cash reports. China’s digital yuan, otherwise known as e-CNY, amounted to 13.61 billion yuan (roughly $2 billion) by the end of December, per official figures reviewed by the South China Morning Post. That reportedly converts to 0.13% of China’s outstanding monetary base supply. (Blockworks)
El Salvador Passes Landmark Crypto Bill, Paving Way for Bitcoin-backed Bonds
El Salvador has passed landmark legislation providing the legal framework for a Bitcoin-backed bond — known as the “Volcano Bond” — which will be used to pay down sovereign debt and fund the construction of its proposed “Bitcoin City”. The bill passed on Jan. 11 with 62 votes for and 16 against, and is set to become law after it is ratified by President Bukele. The National Bitcoin Office of El Salvador announced the passage of the bill in a Jan. 11 tweet thread, noting that they will begin issuing the bonds soon. (Cointelegraph)
Proposed Bill in Argentina to Encourage Citizens to Reveal Crypto Holdings
Argentina’s Ministry of Economy, the country’s economic policy manager, has drafted a bill to encourage Argentines to declare their cryptocurrency holdings with the inducement of discounted tax rates. Aimed at combating money laundering, the “Externalization of Argentine Savings” draft law was introduced by economy minister Sergio Massa according to a Jan. 6 report by local outlet Errepar. The bill would require crypto holders to produce an affidavit — a sworn statement identifying the whereabouts of their holdings to the government. (Cointelegraph)
Russia to Begin Work on CBDC Settlement System in Q1 as Sanctions Endure: Report
Russia’s central bank is reportedly set to begin developing a cross-border settlement system using its Central Bank Digital Currency (CBDC) amid ongoing sanctions in response to its invasion of Ukraine. The plans to move forward with Russia’s digital ruble are expected to come in the first quarter of 2023 and will see Russia's central bank study two possible cross-border settlement models, according to a Jan. 9 report from local media outlet Kommersant. The first proposed model sees various countries entering into separate bilateral agreements with Russia to integrate their CBDC systems. (Cointelegraph)
U.S. Subpoenas Hedge Funds in Binance Probe: Report
Federal prosecutors have reportedly issued subpoenas to several U.S. hedge funds that have dealt with the world’s largest cryptocurrency exchange, Binance Global Inc., as part of a years-long probe into possible money-laundering rules violations, the Washington Post reported. According to the Washington Post’s two unnamed sources familiar with the matter, The U.S. attorney’s office for the Western District of Washington in Seattle is reportedly seeking records of the subpoenaed firms’ communications with Binance. (forkast)
CBN Plans Regulatory Framework for Cryptocurrencies
The Central Bank of Nigeria has said it will bring up a regulatory policy framework for the implementation of cryptocurrencies in the country. It disclosed this in a report on ‘Nigeria payments system vision 2025’. The banking regulator had earlier banned crypto-related transactions in the banking system. “The CBN would consider the development of a regulatory framework for potential implementation of ‘Stablecoins,” CBN disclosed. (punchng)
Bankman-Fried’s Alameda Research Joins Chorus Objecting to Binance Voyager Buy
Alameda Research, FTX’s defunct trading arm that was controlled by Sam Bankman-Fried, has joined the list of protesters against a plan by rival exchange Binance's U.S. affiliate to buy the assets of bankrupt crypto lender Voyager Digital, according to legal filings posted Wednesday with a New York bankruptcy court. The transaction has already been opposed by the U.S. Securities and Exchange Commission, which demanded more information on how Binance.US could afford the $1 billion deal, and by state securities and banking regulators from Texas, New Jersey, Vermont and New York. (Coindesk)
French Central Bank Governor Pushes for Crypto Licensing Ahead of EU Laws
Francois Villeroy de Galhau, the Bank of France’s governor, has urged for more stringent licensing requirements for crypto companies in France, citing the current turmoil in the crypto markets. During a speech in Paris on Jan. 5, the central bank governor said France shouldn’t wait for upcoming EU crypto laws to enact obligatory licensing for local Digital Asset Service Providers (DASPs).
