Here is our pick of the 3 most important Stablecoin news stories during the week.
As this will be the last edition of this weekly summary for 2021, I thought a good place to start would be with these two excellent summaries of where we are with CBDC’s.
Firstly on the Retail side, where consumers hold money directly with the Central Bank.
“While much attention focuses on the retail central bank digital currency (CBDC) ruminations of China, Europe and the United States, smaller jurisdictions are leading the way. For example, Uruguay, the Bahamas, the Eastern Caribbean Central Bank, Nigeria and Jamaica have each launched pilot CBDCs over the past three years.”
Then on the wholesale side, where, as with today’s cash a Bank (Private and/or Public) does the distribution and consumer interface under licence from a Central Bank.
“On December 8, the Bank for International Settlements, the Banque de France (BDF) and the Swiss National Bank announced the completion of Project Jura, which explored cross-border settlement using wholesale central bank digital currencies (wCBDCs). The experiment, in collaboration with private sector firms including Accenture, Credit Suisse, Natixis, R3, SIX Digital Exchange (SDX) and UBS, involved real-value payments and settlements under existing legal and regulatory frameworks.”
We also heard that a large Private sector Bank HSBC with their technology partner IBM tested FX, CBDC settlement.
And to finish with, two stories on US regulators coming to grips with why and how they should get involved.
So in summary, 2021 has seen the Crypto Stablecoin market grow at a pace, while besides China the movers in the CBDC space have been smaller countries where maybe the Central Banks does not have so much to lose as their economies are at least partially USD dollarized anyway.
Alan Scott is an expert in the FX market and has been working in the domain of stablecoins for many years.
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