The growing support for central bank digital currencies (CBDCs) is driven by efforts to shorten financial settlement cycles, with 87% of survey respondents seeing CBDCs as a viable option for faster settlements by 2026, according to a report by Citi.
Central banks are exploring the issuance of digital currencies to promote financial inclusion and provide easier access to money for unbanked populations, with the potential to reduce dependence on cash, increase local currency adoption, and impact the role of international currencies such as the US dollar.
The Digital Dollar Project collaborated with Western Union on a pilot project exploring the use of central bank digital currencies (CBDCs) for cross-border remittances, revealing several benefits such as reduced counterparty risk and increased accessibility for the unbanked.
More than half of Russian citizens are open to using a central bank digital currency (CBDC), but only 17% trust the digital ruble for storing amounts over 20,000 rubles ($212) due to concerns such as insufficient information about the technology and fear of cybertheft and system failures.
Bitcoin, as the world's first decentralized digital currency, is challenging traditional notions of money by empowering individuals, offering a store of value, and demonstrating a growing network effect. With its scarcity, transparency, and potential for financial inclusion, bitcoin is positioning itself as a transformative force in the digital age.
Brazil's central bank aims to address privacy concerns and increase understanding of blockchain technology before launching its central bank digital currency (CBDC), named DREX, in May 2024.
Court rulings in the United States are beginning to challenge the Securities and Exchange Commission's stance on digital assets, leading to hopes of a resurgence in the crypto industry in the country.
China's central bank digital currency (CBDC), the digital yuan, is undergoing upgrades and wallet providers should enable payment options in all retail scenarios through the integration of CBDC QR codes.
The Reserve Bank of India is set to introduce its central bank digital currency (CBDC) in the call money market as tokens for call money settlement.
Thailand's newly appointed government plans to distribute a cash handout to citizens using blockchain and crypto wallets, aiming to promote digital finance and reduce income disparities. The move is seen as a warm-up for the deployment of Thailand's central bank digital currency (CBDC) and is expected to add at least 2 trillion baht ($56 billion) to the economy. However, critics have raised concerns about the source of the funds and the potential erosion of privacy and financial freedom.
The United States House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion will hold a hearing on September 14 to discuss central bank digital currencies (CBDCs) and potential private sector alternatives, marking the first time in months lawmakers will address the issue.
The USA is unlikely to launch a Central Bank Digital Currency (CBDC) anytime soon, according to Michael Barr, the Federal Reserve's Vice Chair for Supervision, as it could pose risks to financial stability and the US payments system.
The Bank for International Settlements (BIS) has successfully used novel intermediaries to reduce liquidity risk and enhance security for central bank digital currencies (CBDCs) in its Project Sela, which feeds into CBDC projects for the Israeli shekel and Hong Kong dollar. The project has demonstrated the feasibility of implementing secure and private CBDC systems on a central bank's ledger, protecting against hacks and ensuring privacy for users.
A key Democrat has introduced a bill for a digital dollar pilot, while Republican lawmakers are pushing for bills to ban central bank digital currencies (CBDCs) in the US, showing a divide on the issue.
Three central banks, including the Hong Kong Monetary Authority and the National Bank of Kazakhstan, are beta-testing new systems to interlink central bank digital currencies (CBDCs) with the help of SWIFT's new interoperability solution.
Cryptocurrency prices remained stable over the past week, with Bitcoin holding steady at $26,569 and Ethereum experiencing a slight 2.8% drop to trade at $1,592, while Chainlink saw a 12% increase. Adoption of cryptocurrencies continues, with Citigroup launching a digital token service and PayPal enabling Venmo users to purchase its stablecoin. In political news, the former chair of the FCA admitted facing political pressure regarding crypto regulations, and the HFSC passed the CBDC Anti-Surveillance State Act to prevent the issuance of a Central Bank Digital Currency in the US.
Ethereum co-creator Vitalik Buterin says that central bank digital currencies (CBDCs) have become "front ends" for the traditional banking system instead of being blockchain-friendly with transparency and privacy features, making them even less private and breaking down barriers against corporations and the government. He believes that Ethereum may be more resistant to government interference with its proof-of-stake consensus mechanism.
Cryptocurrency faces regulatory challenges that could shape its future, but despite these challenges, the industry holds promise with developments such as increased institutional adoption, central bank digital currencies (CBDCs), DeFi innovation, interoperability, and expected regulatory clarity.
The European Central Bank's President, Christine Lagarde, stated that a digital euro is at least two years away and emphasized the need to address privacy concerns before moving forward with the project.
Author Robert Kiyosaki believes that Bitcoin and other assets will become "priceless" as the Federal Reserve introduces a central bank digital currency (CBDC), leading to a loss of privacy and increased government control.
The French central bank views central bank digital currency as the catalyst for improving cross-border payments and the foundation of a new international monetary system.
South Korea's central bank, the Bank of Korea (BOK), will launch a pilot project to explore the technical infrastructure for a central bank digital currency (CBDC), in collaboration with private banks, public institutions, and expert support from the Bank for International Settlements (BIS).
Juan Agustín D’Attellis Noguera, a director of the Banco Central de la República Argentina, publicly supported the promotion of central bank digital currency (CBDC) as a remedy for the national economy, stating that the "digital peso" could stabilize the economy by 2024 through its traceability and ability to broaden the tax base, as well as helping to solve the nation's monetary problem by replacing the unstable Argentine peso.
OpenAI CEO Sam Altman believes that Bitcoin is a logical and important step towards a global currency free from government control, which can help combat corruption and reduce hindrances to progress in society. Altman and podcast host Joe Rogan express optimism for Bitcoin's potential as a universal viable currency, but they express concern and opposition towards central bank digital currencies (CBDCs) due to fears of increased government control and surveillance.
