SETL’s Post

🏦Banking and CBDC Weekend Roundup: CBDCs might not be the future of money, but they're still important! Canada says we don't need to use CBDCs, but they're crucial for a stable economy. Meanwhile, Europe is making progress on the digital euro, while Israel and Taiwan are playing the waiting game. Check out our full Roundup: 🔗 https://lnkd.in/d_w9KF5k #CBDC #crypto #banking #finance #tokenization

🌐 Imagine a future where every dollar is digital, every transaction is traceable, and financial inclusivity is just a click away. Welcome to the world of Central Bank Digital Currencies (CBDCs)! 💸 The Reserve Bank of Australia, in collaboration with the Digital Finance Cooperative Research Centre (DFCRC), is exploring the use cases for a CBDC in Australia. While technical feasibility has been a focus, this project delves into innovative applications and economic benefits that a CBDC could bring. Is Australia ready for this shift? How will it impact businesses and households? What opportunities and challenges do you foresee? 🤔 #CBDC #FinTech #DigitalCurrency #AccountingBusinessExpo #FutureOfFinance #FinancialInclusion #DFCRC #ReserveBankAustralia https://lnkd.in/dDDXY6Ak

The world is just too big for any one solution to dominate cross border payments & forms of money. So the challenge is to interconnnect many models together, creating a global web of value: our RTGS.global Settlement Fabric is built for this critical need

Totally agree....There is a #digitalmoney race. But what we keep on forgetting is that FIAT is here to stay. So, while we are all thinking about #crossborder #stablecoins #cbdcs, we must be thinking #fiat and how are these things all interoperable. One of the key design principles behind RTGS.global was the fact that we saw a need for intereoperability and have an understanding that the entire globe will not be CBDC or be using Stablecoins all that the same time. This is why #SettlementFabric provides that interoperability layer, bringing together in one fabric all aspects of settlement. What does that mean? Well settle CBDC vs FIAT, or another CBDC. Why not CBDC vs StableCoin and that StableCoin with FIAT? Simple on/off ramps from FIAT into digital assets and back? Its all about Value vs Value with one simple and a single integration.....That's what we have been working on for a long time and that's exactly what we have delivered.... #infrastructure #global #settlement #payments

One of the key #fintech and #blockchain topics accelerating in the last year, and likely to continue accelerating in the next year. There are some fantastic initiatives happening in #EU, flying perhaps a little bit under the radar, in which I am going to inject very substantial capital in the coming months. Given the role played by USD in #crossborder economy and as a global currency, the need for US legislators to catch-up to some of their counterparts in other major regions becomes increasingly more pressing. Hard to see much this year as it is election year, but Christmas is still happening so please Santa, surprise me. There also is an interesting topic pertaining to the Chinese Renminbi, as China is a huge contributor to global supply chains, and to cross-border commerce. You can't have two increasingly more parallel systems of China / US in light of that. Some degree of a bridge must exist, at deep levels in the flows and operations of money and goods.

"In advanced economies, many banks are not keen on the idea of a retail central bank digital currency (CBDC) for a variety of reasons. For example, it could either dent or decimate their deposit bases. Each country’s cultural norms are on display with how they approach this opposition. In the latest thoughtful paper from the team at Barclays, it is ever so polite. It subtly suggests that a digital pound may not be needed because it’s possible to anchor the pound in other ways. It’s a short, succinct and thought-provoking paper, well worth the read. “Further research is required before drawing definite conclusions and further work could include public-private collaboration to explore options to anchor all forms of private UK retail digital money,” said Lee Braine, from the chief technology office at Barclays. On the other side of the pond, the American Bankers Association has been extremely blunt, backing anti-CBDC legislation, which might inadvertently also block a wholesale CBDC. In Europe, one or two banks have voiced concerns about the digital euro and then retreated, with many considering a CBDC rollout as a foregone conclusion. Instead, in the EU several papers from think tanks have questioned whether a digital euro is a good idea. Barclays’ paper starts by exploring how other jurisdictions have considered this anchoring objective of a retail CBDC. The anchoring function can be broken into three components: the singleness of money, maintaining the status of the official currency as the unit of account, and the safety and soundness of the financial system. CBDC and the singleness of money The singleness of money is quite a practical concept. In the past I had a PayPal balance that I wanted to transfer to a Wise account, but PayPal wouldn’t let me (although it does nowadays). If a retail CBDC had existed, I could have transferred the PayPal balance to the CBDC and then to Wise. However, the Barclays paper points out that you don’t need a CBDC for this. What you need is interoperability between different forms of private money. Combining that with wholesale central bank money for interbank settlement and prudential regulations should be sufficient to ensure the singleness of money." Ledger insights Blockchain for Banking • Barclays paper questions need for digital pound to preserve singleness of money

This week it's all about the cross border payments race, folks! Most bets are being hedged when predicting the future of international payments I firmly agree with Keith Bear from the Cambridge Centre for Alternative Finance that a global “digital money race” is starting, where we have “stablecoins, central bank digital currencies and tokenised deposits … running in parallel”. I would take Bear’s point further and say, when it comes to the future of payments, there is another race brewing over who is best placed to take advantage of emerging technologies like distributed ledger and tokenisation. The race is between the central banks and what Cecilia Skingsley, head of the BIS Innovation Hub, described as “private sector expertise” — meaning commercial banks and fintech companies — and the dominance of Swift as the guardian of global financial messaging. #TheBanker #FreeToRead https://lnkd.in/ee3Hd5UY

Plenty to unpack here, always thought provoking from The Banker…but one question - as Central Bank offerings stabalise, what transactions will choose to avoid them in pursuit of what exactly? Product flexibility? Geographic reach? Scrutiny? What legitimate use cases will exist in a central bank digital currency world…

"Put differently, there are over 1.5 billion people living in countries where CBDCs have been rolled out. Yet the public has largely been left out of this conversation. Most people still have no idea what a CBDC is—let alone whether their government is pursuing one. Getting this information into the hands of the public and helping people understand what is at stake is why I wrote my book: Digital Currency or Digital Control? Decoding CBDC and the Future of Money. The book breaks down what a CBDC is, why advocates argue that governments need to launch CBDCs, and why the risks make CBDCs something to avoid. "To take one example from the book, advocates often argue that a CBDC could bank the unbanked. The problem? When surveyed, unbanked Americans often say they do not have a bank account because they do not trust the banking system and want to preserve their privacy. Considering that trust in the government is at historic lows and financial surveillance is mandated by law, a CBDC is unlikely to be a solution for these people." #cbdc #centralbanking https://lnkd.in/eXSFS6rq