Search Results for: Central Bank

“Switzerland-based BIS predicts the issuance of as many as 15 retail Central Bank Digital Currencies (CBDCs) by decade’s end, with 93% of Central Banks globally involved in CBDC research, planning and piloting. The trend towards CBDCs might bridge the financial gap among the unbanked worldwide, but raises questions about traditional cryptocurrencies’ value as CBDCs would be government-controlled.”

“Recent research reveals 93% of central banks are actively looking into Central Bank Digital Currencies (CBDCs). Despite this interest, 68% claim they aren’t ready to release their own digital currency soon. Emerging markets, aiming for financial inclusion, lead CBDC adoption.”

Federal Reserve Chair Jerome Powell emphasizes the need for a strong federal presence in stablecoin supervision during a monetary policy hearing, asserting the central bank’s crucial role in oversight. As the crypto landscape evolves, creating a regulatory framework that balances stablecoins’ potential benefits and investor protection is vital for future success.

The Hong Kong Monetary Authority (HKMA) is pressuring major banks like HSBC and Standard Chartered to accept crypto exchanges as clients, highlighting growing cryptocurrency acceptance and the need for traditional financial institutions to adapt to this evolving landscape.

The U.S. Treasury Department explores Privacy Enhancing Technologies (PETs) to protect privacy and anonymity in potential digital dollar transactions. As the U.S. considers introducing a Central Bank Digital Currency (CBDC), addressing risks and striking a balance between privacy and transparency remain top priorities for policymakers.

The Central Bank of the UAE has issued new guidelines targeting anti-money laundering and counter-terrorism financing within cryptocurrencies and NFTs. These regulations apply to licensed financial institutions and emphasize the risks and legal obligations associated with dealing with cryptocurrencies.

In Russia, cryptocurrencies are considered too risky for most but suitable for professional investors, according to Ivan Chebeskov, director of the financial policy department at the Finance Ministry. While acknowledging the high-risk nature of cryptocurrencies, Chebeskov emphasized their potential for investment. Tensions arise between the Central Bank’s focus on banning cryptocurrencies and the Finance Ministry’s push for regulation and taxation, resulting in an uncertain future for Russia’s crypto market.

Norway’s central bank, Norges Bank, urges the country to develop a national crypto regulation strategy as the EU’s MiCA regulation approaches. Despite MiCA’s focus on consumer protection and market integrity, it lacks comprehensive decentralized finance regulation. Norges Bank emphasizes the importance of understanding the evolving crypto landscape to foster responsible growth and innovation.

This article discusses the risks associated with bank failures and the crypto market, highlighting the dependency of stablecoin issuers on banking partners for fiat settlement. It suggests granting e-money institutions direct access to central bank accounts, like in the UK and Lithuania, to increase safety, foster payment innovation, and reduce banking risks.

The G-7 finance ministers discussed their commitment to regulating crypto-assets and exploring central bank digital currencies (CBDCs) in a recent meeting. They emphasized the need for effective regulatory frameworks while supporting innovation and addressing potential risks to the monetary and financial system.

EBA Chair José Manuel Campa emphasizes the need for stablecoins to adhere to sensible guardrails, as central banks should have the right to veto if they threaten monetary policy or financial stability. MiCA’s introduction will regulate all crypto-related activities in the EU, ensuring stablecoin issuers comply with vital regulations while considering central banks’ role.

European Banking Authority Chair José Manuel Campa calls for central bank veto powers over large stablecoins, citing concerns for financial stability and public policy. The upcoming Markets in Crypto Assets (MiCA) regulation sets guidelines and requirements for stablecoin issuers, including stringent authorization and supervision processes.

Central Bank of Ireland Governor Gabriel Makhlouf likens unbacked cryptocurrencies to a “Ponzi scheme” and emphasizes the importance of differentiating between ‘backed’ and ‘unbacked’ crypto. The recent approval of MiCA by the European Parliament marks a significant step in cryptocurrency regulation, acknowledging the potential of cryptocurrencies while protecting consumers and investors from unwarranted risks.

The Central Bank of Argentina has prohibited payment providers from facilitating crypto transactions to minimize the country’s payment system exposure to digital assets. This decision affects all coins and tokens in Argentina, potentially impacting the nation’s growing crypto industry amidst ongoing economic crisis and hyperinflation. Argentina’s fintech community remains skeptical about this stance.

The Nigerian Federal government approved a “national blockchain policy” after consultation with 56 institutions and personalities. This move indicates the institutionalization of blockchain technology in Nigeria. However, the Central Bank’s stance on privately issued digital currencies remains a roadblock, impacting the future of the Nigerian blockchain and cryptocurrency space.