TronWeekly

Crypto World News

You are here: Home / Archives for CBDC

CBDC

Bitcoin Booms: Major Buy Signal And High-Profile Endorsements

by

In the cryptocurrency market, massive shifts are happening as Bitcoin presents one of the most popular buy indicators. Crypto Rover, a popular crypto analyst, recently shared his insights, and he expects that Bitcoin will experience significant upside due to endorsements and crucial events.

The Crypto Rover’s analysis shows one of the most important buy signals that could lead to a massive increase in the price of Bitcoin. This has been a bullish signal in the past and given that Bitcoin is experiencing this now, more and more enthusiasts are watching the next move.

Bitcoin 2024 Conference

This is the start of the much awaited Bitcoin 2024 conference in Nashville and this event is expected to shape the future of the bitcoin and other cryptocurrencies. Former President of the United States of America, Donald Trump is expected to give a speech and his appearance is believed to cause a lot of activity in the market.

Trump has previously spoken favorably about cryptocurrency, supporting the ability to have control over one’s assets and against the idea of a CBDC. Recent speculations have it that Trump may be planning to launch new policies regarding BTC which may greatly boost the market. Since his approval rating for re-election is currently above 61%, his bullish comments might greatly affect BTC.

This includes as far-fetched scenarios as Trump promoting BTC as the reserve currency of the United States. This view, which CNBC has interviewed, seems more and more realistic as the US now has more than 200,000 BTC. An announcement like this has the potential of raising the valuation of Bitcoin, and take it to new heights.

Influential Speakers At The Conference

The conference has impressive speakers like Robert F. Kennedy Jr., Michael Saylor, and possibly Elon Musk. Indeed, Musk’s recent remarks on dollar value destruction and hyperinflation have already created a commotion in the market. His appearance and any positive words he has to say about BTC could help increase its worth.

Rover explains charts and patterns and focuses on the continuous bullish pattern after the hash ribbon buy signal. Traditionally, this signal has been the immediate lead to major market rallies following every halving of BTC. The present signal, beginning at the first halving of the fourth cycle is indicative of the beginning of a new bull market.

The once-feared sell-off from the defunct Mount Gox exchange now looks less alarming. Thus, with the majority of lost Bitcoins from Mount Gox, the expected market manipulation can be ruled out. This gets rid of a major bearish pressure and therefore opens up the way for potential increases.

Bitcoin has been sending buy signals and such personalities as Donald Trump and Elon Musk could become its big supporters in the future. The 2024 Bitcoin conference may very well define BTC’s price action and bullish thesis. 

Trump Vows to Defend Crypto Rights and Oppose CBDC

by

In a bold stateme­nt that has electrified the­ cryptocurrency community, former Preside­nt Donald Trump declared his unwavering support for the­ burgeoning digital currency sector in the­ United States. Speaking at a rally, Trump e­mphasized the critical role the­ US must play in shaping the future of Bitcoin and other crypto curre­ncies.

“The future of Bitcoin and the entire crypto industry will be made in the USA,” Trump proclaimed to a cheering crowd. “I will support the right of self-custody for the nation’s 50 million crypto owners. They deserve the freedom to control their digital assets without unnecessary government interference.”

Trump’s remarks come at a time when the cryptocurrency market is under intense scrutiny from various regulatory bodies. He took the opportunity to criticize Senator Elizabeth Warren, a known advocate for stricter crypto regulations. “I will keep Elizabeth Warren away from Bitcoin,” Trump asserted. “Her policies threaten to stifle innovation and drive this vital industry overseas.”

Trump’s Renewed Crypto Commitment

Trump’s rene­wed support for digital currencies marks a significant departure­ from his 2019 stance when he criticize­d Bitcoin and other virtual currencies on Twitte­r. Since then, Trump has shown increasing support for the­ sector. He has launched thre­e non-fungible token (NFT) colle­ctions and is the first major party nominee to acce­pt campaign donations from digital assets.

Trump’s former administration oversaw the­ approval of bitcoin exchange-traded funds (ETFs), which forme­r CFTC Chairman Chris Giancarlo cites as evidence­ of Trump’s potential as a “crypto president.” Re­cently, Trump has also raised the issue­ of Biden’s limited understanding of digital assets and calle­d on digital assets supporters to vote for him.

During his addre­ss at the convention, Trump reite­rated his plan to protect free­ speech and dismantle what he­ called the “censorship and industrial comple­x.” He promised, “On day one, I will sign an e­xecutive order banning fe­deral agencies from colluding to ce­nsor the lawful speech of Ame­rican citizens. We will remove­ the rogue bureaucrats who conspire­ to take away your First Amendment fre­edoms. We will do that quickly.”

Related Reading | BlockDAG’s Miner Sales Drive Presale Past $32.8M Amidst Arbitrum Surge and FET Price Recovery

U.S. House Approves Emmer’s CBDC Anti-Surveillance State Act with 216-192 Vote

by

The U.S. House of Representatives passed the Central Bank Digital Currency (CBDC) Anti-Surveillance State Act, introduced by Rep. Tom Emmer (R-Minn.) on May 23, 2024. The le­gislation was approved by 216-192 votes to prevent the Federal Reserve from directly offering CBDC to individuals and using it to implement monetary policy.

The bill, which had the backing of all Republican repre­sentatives and three­ Democrats—Mary Peltola of Alaska, Marie Pe­rez of Washington, and Jared Golden of Maine­—marks a pivotal moment in the ongoing debate­ over digital currency and financial privacy in the Unite­d States.

My legislation ensures that the United States’ digital currency policy remains in the hands of the American people so that any development of digital money reflects our values of privacy, individual sovereignty, and free market competitiveness, Emmer stated.

CBDC Anti-Surveillance Act: Privacy Protection

Introduced in Se­ptember 2023, Emmer’s bill quickly garne­red significant support, with 165 Republicans among its cosponsors by the time­ of the vote. The act forms part of a broade­r legislative push to define­ the US approach to digital currencies. Just a day be­fore the CBDC Act passage, the­ House approved the Financial Innovation and Te­chnology for the 21st Century Act (FIT21 Act), which will also move to the­ Senate.

The CBDC Anti-Surve­illance State Act addresse­s growing concerns over the pote­ntial misuse of digital currencies for gove­rnment surveillance. Emme­r underscored these­ issues by drawing connections to what China has done with CBDC to monitor citize­ns’ spending habits and refere­nced Canada’s actions during the 2022 trucker prote­sts, mentioning the governme­nt froze protestors’ bank accounts.

Emmer stressed that having a law like this in place­ is essential to ensure­ that the federal gove­rnment doesn’t deve­lop a financial surveillance tool that would undermine­ Americans’ privacy and autonomy.

Advocates and Critics Clash Over CBDC Legislation

Supporters of the bill argue­ that this bill is crucial for protecting financial privacy in this digital era. The­y argue that all the governme­nt digital currencies must follow the same­ mode as that of cash, which should be “open, pe­rmissionless, and private.” This will make sure­ that the digital dollar does not become­ a tool for government surveillance­ or control.

However, critics argue that a CBDC could unde­rmine the existing financial syste­m and infringe on individual rights. The American Banke­rs Association (ABA) and the Independe­nt Community Bankers of America (ICBA) have voice­d concerns that a CBDC would pose unacceptable­ risks and costs to the financial system. Furthermore­, the Blockchain Association has highlighted the pote­ntial privacy threats that could arise from a governme­nt-issued digital currency.

The bill now move­s to the Democrat-controlled Se­nate, where its future­ remains uncertain. The Se­nate recently passe­d Joint Resolution 109, which seeks to ove­rturn the SEC’s staff accounting bulletin (SAB) 121, indicating a willingness to e­ngage with financial regulatory issues. Whe­ther the Senate­ will extend this engage­ment to Emmer’s CBDC Anti-Surveillance­ State Act is yet to be se­en.

Related Readings | U.S. House Vote on FIT21 Bill to Define Crypto Regulations, Impact Coinbase’s Future

China’s CBDC Faces Hesitancy Among Users, Privacy Concerns Loom

by

China’s ambitious venture into the realm of Central Bank Digital Currency (CBDC) is facing hurdles as reports emerge of hesitancy among participants in the pilot program. The state-backed digital yuan, often referred to as e-CNY, is encountering resistance from users who are reluctant to hold onto it, citing various concerns regarding its utility and privacy.

Recent findings indicate that despite efforts to promote the digital yuan, including its adoption as a form of salary payment for state workers in certain cities, many recipients are opting to convert it into physical cash immediately. Sammy Lin, an account manager at a Chinese state bank in Suzhou, exemplifies this sentiment, expressing his preference not to keep funds in the e-CNY app due to the absence of interest and limited spending options.

Similarly, Andrew Wang, a civil servant, acknowledges the digital currency but notes its insignificance in his overall salary. However, his wife, who receives her entire salary in digital yuan, promptly converts it to cash, citing the lack of functionality associated with the e-CNY wallet.

CBDC Privacy Challenges Acknowledged

The reluctance to embrace the digital yuan extends beyond concerns of convenience and financial incentives. Chinese citizens remain apprehensive about the broader implications of transitioning to a cashless society, fearing increased surveillance and the erosion of privacy. Ye Dongyan, a researcher at Beijing’s Cheung Kong Graduate School of Business, emphasizes the need to strike a balance between privacy and security in the implementation of the digital yuan.

Yi Gang, the former governor of the People’s Bank of China, acknowledges the privacy challenges inherent in the CBDC initiative but assures users of “controllable anonymity,” which purportedly safeguards privacy while allowing for traceability in larger transactions.

Despite these assurances, skepticism persists, with participants urging policymakers to address privacy concerns more comprehensively. The journey towards widespread adoption of the digital yuan necessitates not only technological advancements but also robust safeguards to protect user privacy and engender trust in the burgeoning digital financial landscape. As China continues its push towards a cashless future, the resolution of these challenges will be pivotal in shaping the success of its CBDC initiative.

US Risks Losing CBDC Race, Think Tank Warns

by

The Atlantic Council, a prominent think tank, has issued a warning that the United States is falling behind its global peers on the development of central bank digital currencies (CBDCs), which could have serious implications for the future of money. They aim to provide a fast, secure, and cost-effective way of transferring value while preserving the stability and sovereignty of the existing monetary system.

Several countries have been actively pursuing CBDC projects with varying degrees of progress and ambition. China, for instance, has been testing its digital yuan in several cities and regions and plans to use it for the 2022 Winter Olympics. The European Central Bank (ECB) has launched a preparatory phase for a digital euro, which could take up to five years to complete. India, meanwhile, has seen a surge in digital rupee transactions as commercial banks offer the service to their customers.

The US, however, has been slow and cautious in its approach to CBDCs. The Federal Reserve has only recently announced that it will launch a pilot program this year and has not committed to a timeline or a design for a digital dollar. Several Fed officials have also expressed doubts about the need and the benefits of a CBDC, citing potential risks to financial stability, privacy, and security.

This month, former President Donald Trump, who is running for re-election, declared that he would “never allow” the creation of a digital dollar, calling it a “dangerous threat to freedom”. He claimed that a CBDC would give the government too much power over people’s finances and that it would undermine the strength and dominance of the US dollar.

Think Tank Pushes Fed For CBDC Acceleration

The Atlantic Council’s GeoEconomics Centre, led by Josh Lipsky and Ananya Kumar, has published a report urging the Fed to accelerate its efforts on CBDCs and other payment innovations, warning that the US could lose its leadership and influence in the global financial system if it does not act fast.

The report argues that the Fed should seize the opportunity to set standards and shape the development of CBDCs and payments, both domestically and internationally. It notes that central bankers worldwide are looking for the Fed’s guidance and collaboration on these issues and that the US has a unique chance to promote its values and interests through CBDCs.

The report also points out that the US is lagging behind not only on CBDCs but also on improving cross-border payments and implementing FedNow, a real-time payment service that the Fed plans to launch in 2023. It calls on the Fed to do more to explore and advance these projects and to engage with the public and private sectors on their benefits and challenges.

The report concludes that the future of money is changing rapidly and that the US cannot afford to be complacent or resistant to change. It warns that “if they don’t, the future of money may quickly pass them by”.

Related Reading | RippleX Engineer Proposes Bold Overhaul for XRPL Foundation Governance

Palau’s CBDC Goes Global With Ripple’s Support

by

Palau, a small island nation in the Pacific Ocean, has taken a major step towards becoming a global leader in blockchain-based digital currency. The country’s Ministry of Finance has launched the second phase of the Palau Stablecoin (PSC) Program with Ripple’s CBDC platform collaboration.

The PSC Program aims to create and distribute a digital currency pegged to the U.S. dollar. The program will provide blockchain solutions for cross-border payments and remittances. Ripple’s CBDC platform, XRP Ledger (XRPL), will enable the PSC team to issue and manage the digital currency on a secure and scalable network.

PSC stands for Palau Stablecoin, a digital currency backed by one U.S. dollar at all times. The PSC is stored in commercial banks with FDIC insurance, ensuring its stability and liquidity. The Palau government issues the PSC on the XRPL, a distributed ledger technology that allows fast and low-cost transactions.

The PSC can be used for various purposes, such as online shopping, peer-to-peer transfers, donations, and more. The PSC can also be exchanged for other currencies, goods, and services at participating retailers or vendors.

The PSC Program has two phases: Phase 1 was announced on December 7, and Phase 2 was launched on December 17, 2023. In Phase 1, 168 volunteers from government employees received 100 PSCs each to use at local retailers participating in the program. In Phase 2, new collaborations will be established for marketing and sustainable development goals.

Palau’s CBDC Partnership With Ripple

Palau chose Ripple as its partner because of its expertise and experience developing CBDCs worldwide. Ripple has been working with central banks and regulators to explore the potential of blockchain-based digital currencies for enhancing financial inclusion, efficiency, transparency, and security.

Ripple also provides technical support and guidance to the PSC team on using its CBDC platform effectively and securely. Ripple’s CBDC Strategic Advisor, Anthony Welfare, shared his thoughts on the launch of Phase 2 on X (formerly known as Twitter).

The advantages of blockchain-based digital currency over traditional fiat and cryptocurrencies were emphasized regarding its welfare impact. These advantages encompass decreased transaction fees, expedited settlement durations, diminished environmental footprint, enhanced privacy safeguards, and additional benefits.

Welfare also acknowledged some of Palau’s challenges in implementing its CBDC program. He mentioned that moving traditional currencies across the 340 islands in Palau can be complex due to logistics issues. He also noted that mobile data costs are high in Palau due to limited coverage.

However, Welfare suggested that these challenges can be overcome by offline transactions with blockchain-based digital currency such as PSC. He explained that Palau residents could conduct transactions even during power outages using QR codes or NFC devices.

Related Reading | NFT Trader Faces Massive Security Breach, Millions Lost in Stolen High-Value Tokens

MAS Exec Excludes Crypto from Digital Money Race

by

MAS’ senior executive has asserted that stablecoins and central bank digital currencies [CBDCs] are positioned as potential forms of digital currency, distinct from cryptocurrencies. Ravi Menon, the managing director, conveyed this perspective during the Singapore Fintech Festival, emphasizing the role of privately issued cryptocurrencies, CBDCs, well-regulated stablecoins, and tokenized bank liabilities in the future financial landscape.

Menon’s rationale for excluding traditional cryptocurrencies from this category lies in their perceived failure to meet the requisite criteria for digital money. He highlighted their shortcomings, citing poor performance as a medium of exchange or store of value, susceptibility to speculative price swings, and significant losses suffered by many cryptocurrency investors.

MAS
Pic Source: @MAS_sg

There are four contenders for digital money. Cryptocurrencies have failed the test of digital money because they have performed poorly as a medium of exchange or store of value, their prices are subject to sharp speculative swings, and many investors in cryptocurrencies have suffered significant losses.

These remarks have attracted attention, particularly considering Singapore’s status as a prominent crypto hub in Asia. Menon illustrated his point in a keynote speech by referencing Paxos, a blockchain infrastructure platform that recently launched a stablecoin pegged to the USD in Singapore after securing approval from the Monetary Authority of Singapore [MAS].

As reported by TronWeekly, the new stablecoin aligns with MAS’ regulatory framework for stablecoins, unveiled on August 15, which outlines criteria such as value stability, capital, and redemption at par for issuers. MAS sees well-regulated stablecoins as a promising digital currency that complements CBDCs and tokenized bank liabilities.

MAS Managing Director Champions Project Guardian

Menon also highlighted Project Guardian, a collaborative effort between MAS and industry partners to tokenize foreign exchange, bonds, and funds. This initiative aims to enhance global liquidity, streamline cross-border transactions, and improve operational efficiency in financial markets, with trials involving major global banks.

Menon envisions a broader network of interoperable systems that facilitate instantaneous and seamless payment, clearing, and settlement. He emphasized the transformative potential of digital assets, identifying two critical features that could fundamentally change financial transactions. However, Menon expressed reservations about existing digital asset networks, including public permissionless blockchains and private permissioned blockchains, citing challenges such as accountability, legal uncertainty, and interoperability issues that limit their suitability as a global digital asset infrastructure.

Ripple Gains Momentum Towards IPO Amid Legal Victories

by

In a highly anticipated Ripple event, known as Swell, scheduled for the upcoming weeks, the XRP community is abuzz with speculation about potential game-changing announcements. At the forefront of these swirling speculations, Ripple is unveiling its intention to undertake an Initial Public Offering (IPO), marking a potentially game-changing event for the XRP community.

A prominent XRP enthusiast known as WrathofKahneman (WoK) is  Leading the charge in discussing Ripple’s IPO announcement at Swell. Recognizing the immense importance of the upcoming conference, WoK has ventured to explore what the future might hold for the XRP community. WoK has meticulously outlined four key potential developments that could emerge from the Swell conference, with the IPO announcement taking center stage.

The enthusiasm surrounding discussions about IPO has been steadily building in recent weeks, particularly in light of consecutive legal victories. Adding fuel to the fire, Ripple recently dropped a hint about its IPO plans by posting a job opening for a “Senior Shareholder Communications Manager.”

Ripple’s Innovations In CBDCs And Stablecoins

The XRP community’s unwavering belief in Ripple’s imminent IPO has them eagerly anticipating any official statements during Swell. In addition to the IPO buzz, WoK and other community members eagerly await a possible announcement regarding acquiring a Virtual Assets Regulatory Authority (VARA) license during the conference.

Additionally, the crypto community is on the lookout for updates on Ripple’s Central Bank Digital Currency (CBDC) initiatives, advancements in stablecoins, tokenization, and the expansion of XRP’s user base through the introduction of new services. These developments are poised to reshape the landscape of digital finance.

Ripple’s official announcement outlines Swell as an immersive two-day event scheduled to take place in Dubai on November 8 and 9, 2023. The gathering is set to bring together luminaries from blockchain, cryptocurrency, financial services, and economic policy.

The agenda includes discussions on the Future of Crypto, CBDCs, Payments, Compliance, Regulation, and Payments. Participants could delve into digital cash and payments, gaining crucial insights into combining crypto tech with conventional finance. It emphasizes a deep dive into how regulatory measures impact digital currencies.

With Ripple’s Swell event on the horizon, the XRP community remains on the edge of their seats, eagerly awaiting any potential groundbreaking announcements, especially regarding IPO plans.

Mastercard To Wraps Australian CBDC For NFT Adventure On Ethereum

by

Mastercard has joined the Central Bank Digital Currency (CBDC) pilot project in Australia, where they showcased the capabilities of CBDCs by purchasing a non-fungible token (NFT) listed on the Ethereum blockchain. 

The innovative process effectively “wrapped” the CBDC on the Reserve Bank of Australia’s (RBA) pilot CBDC platform and created wrapped pilot CBDC tokens on the Ethereum blockchain.

YouTube video

Mastercard announced this significant milestone in a press statement on 12th October, emphasizing the successful development of a new solution. This solution enables CBDCs to be tokenized or “wrapped” on various blockchains, opening up new opportunities for consumers to participate in commerce across multiple blockchains while enhancing security and user-friendliness.

The collaboration that led to this achievement involved Mastercard, Cuscal, and Mintable as part of a research project with RBA and DFCRC. They aimed to explore potential use cases for a CBDC in Australia. 

They emphasized stringent controls to ensure pilot CBDCs can only be held, used, and redeemed by authorized parties who have undergone Know Your Customer (KYC) verification and risk assessment by licensed service providers.

Richard Wormald, Division President, Australasia at Mastercard, explained the rationale behind this development:

This technology not only has the potential to drive more consumer choice, but it also unlocks new opportunities for collaboration between the public and private networks to drive genuine impact in the digital currency space.

Mastercard’s Broader Blockchain Strategy

The live demonstration showcased how the solution allowed the holder of a pilot CBDC to purchase an NFT on the Ethereum public blockchain with robust controls in place. This success also highlights the Multi Token Network introduced by Mastercard, designed to make payments and commerce applications more efficient using blockchain technology.

This initiative aligns with Mastercard’s broader strategy to expand blockchain technology usage in various payment scenarios, with the network currently in beta testing and being piloted by select financial institutions worldwide.

However, this achievement by Mastercard, in collaboration with RBA, Cuscal, and Mintable, represents a significant step in the evolution of CBDCs and blockchain technology. 

It showcases the potential for greater blockchain interoperability and offers consumers new opportunities to securely and transparently engage with digital currencies.

Related Reading | SBF Alleges Binance’s Secret Plot In FTX Downfall

French Central Bank Backs CBDC As Key To New Global Monetary System

by

In a significant move that underscores the evolving landscape of digital currencies, representatives of Banque de France, the country’s central bank, have thrown their weight behind the central bank digital currency (CBDC) discourse. In a recent announcement, Denis Beau, the first deputy governor of Banque de France, hailed CBDC as the linchpin for ushering in a novel international monetary system.

According to a recent report, Beau’s endorsement came during a pivotal moment on October 3 when he asserted that CBDCs could be the catalyst for revolutionizing cross-border payments and reshaping the global financial order. Unlike many who view CBDCs as an afterthought in the cross-border arena, Beau emphasizes their strategic importance from the outset.

Pioneering CBDC Development Paths Unveiled

The deputy governor laid out two paths for Central Bank digital currency development. The first path entails establishing common standards and fostering interoperability between wholesale CBDCs and traditional financial systems. The second path, actively advocated by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS), revolves around creating regional or global central bank digital currency platforms. These platforms would enable the direct exchange of standardized wholesale CBDCs while facilitating payment versus payment and delivery versus payment transactions.

One noteworthy highlight in Beau’s address was his reference to Project Mariana. This collaborative initiative, involving Banque de France, the Monetary Authority of Singapore, and the Swiss National Bank, delved into the potential of an automated market maker (AMM). The project, which concluded successfully in late September, could hold key insights for the future of central bank digital currency

In a broader context, Beau extended his thoughts beyond central bank digital currency, touching on the tokenization of finance. He ardently believes that the public sector must actively support the private sector to unlock blockchain’s full potential while managing associated risks. He believes tokenized “central bank money availability” and tokenized assets should be seen as allies rather than rivals in the evolving financial landscape.

Banque de France’s enthusiastic embrace of central bank digital currency as a cornerstone of a fresh global monetary system signals a significant shift in the central bank’s approach. As discussions around CBDCs continue gaining momentum worldwide, the world eagerly watches how other central banks respond to this emerging financial paradigm.

Related Reading: |CBDC Battle Royale: Congress Divided Over Digital Currency