Distributed ledger technology (DLT) and digital assets are becoming the preferred way to meet cash and liquidity requirements for digital securities settlements, according to a report from Citi Securities Services. However, the Bank for International Settlements (BIS) is cautioning that banks using permissionless a.k.a public blockchains face “risks related to operations and security, governance, legal,… Read More >>
Cboe Clear Europe & ABN Amro Test CBDC as Collateral
Cboe Clear Europe, a pan-European clearinghouse, and ABN Amro Clearing Bank N.V., report that they have been testing the use of a central bank digital currency (CBDC) as collateral, essentially exploring the potential of distributed ledger technology (DLT). In particular, they have been “testing the viability of the solution for margin calls outside the opening… Read More >>
Swift Explores CBDC Links to FX, Tokens & Liquidity
The global Swift financial messaging cooperative has completed a collaborative “sandbox experiment” testing the interoperability of an interlinking solution for central bank digital currencies (CBDCs) intended to “simplify and speed up trade flows, unlock growth in tokenized securities markets, and enable efficient FX settlement,” officials say. CBDCs are the digital currencies likely to be issued… Read More >>
A CBDC for the U.S. Could Transform Ops: DTCC
A Central Bank Digital Currency (CBDC) for the U.S. could work within a settlement infrastructure based upon distributed ledger technology (DLT), but this potential overhaul of a key post-trade operation needs more exploration and the cooperation of the Federal Reserve in order to work, according to the findings of the Depository Trust & Clearing Corp…. Read More >>
SWIFT & Capgemini Explore ‘Disruptive’ CBDCs: Q&A
(Unregulated cryptocurrency markets are crashing and financial market participants are looking toward regulation and particularly the establishment of central bank digital currencies (CBDCs). Digital currencies controlled by central banks hold the promise of new protections for crypto-, tokenized, and other digital assets, Last month, officials at the SWIFT financial services messaging and systems cooperative and… Read More >>
Israel’s Central Bank Mulls a Potential ‘Digital Shekel’
There’s a move afoot to take the crypto out of cryptocurrency. How? Simply by pegging its value to the value of the fiat currency issued by a country’s central bank. Those not-so-crypto digital currencies are called “central bank digital currencies” or CBDCs. “Many countries are developing CBDCs, and some have even implemented them,” say our… Read More >>
Yellen Urges a Cautious Approach to CBDCs
The concept of digital currencies run by central banks is counter to the chaos-driven cryptocurrency movement. But central bank digital currencies (CBDCs) are now seen in a very favorable light because of the protections and order they could bring to the crypto world. Even so, Secretary of the Treasury Janet L. Yellen earlier this month… Read More >>
