Digital Dollar
Clearing company tests out securities transaction settlements on blockchain networks
The Digital Dollar Project (DDP) and the Depository Trust & Clearing Corporation (DTCC) released the results of their Security Settlement Pilot project Nov. 30. The project tested a simulated digital U.S. dollar in transactions with tokenized securities on a blockchain network under real-world conditions. The project was designed “to better understand the implications of a U.S. Central Bank Digital Currency (CBDC) on post-trade settlement,” especially on DvP (delivery versus payment) settlements, sometimes called atomic settlements, that ensure securities transfers only take place simultaneously or nearly simultaneously with payment. No U.S. CBDC has been developed or even authorized yet. DTCC managing director Jennifer Peve wrote in her company’s foreword: “These efforts, which ...
US lawmaker lays out case for a digital dollar
Connecticut House of Representatives member Jim Himes has released a proposal aiming to start a dialogue on the United States potentially launching a central bank digital currency, or CBDC. In a white paper released on Wednesday, Himes urged Congress to begin exploring the rollout of a digital dollar issued by the Federal Reserve to prevent the government from falling behind in innovations in financial technology. According to the U.S. lawmaker, a CBDC “should not be thought of as replacing legacy payment systems and currencies but as an additional alternative for consumers and businesses.” The white paper laid out a proposal in which a CBDC could present concerns over transparency, security and privacy when compared with fiat currency. Himes added that any regulatory framework on CBDCs en...
5 reasons why Bitcoin could be a better long-term investment than gold
The emergence of forty-year high inflation readings and the increasingly dire-looking global economy has prompted many financial analysts to recommend investing in gold to protect against volatility and a possible decline in the value of the United States dollar. For years, crypto traders have referred to Bitcoin (BTC) as “digital gold,” but is it actually a better investment than gold? Let’s take a look at some of the conventional arguments investors cite when praising gold as an investment and why Bitcoin might be an even better long-term option. Value retention One of the most common reasons to buy both gold and Bitcoin is that they have a history of holding their value through times of economic uncertainty. This fact has been well documented, and there’s no denying that gold has ...
Fed’s Lael Brainard hints at US playing a lead role in development of CBDCs
Lael Brainard, a member of the Federal Reserve’s Board of Governors, encouraged the United States to be a leader in research and policy regarding central bank digital currencies, or CBDCs, due to potential international developments. In remarks prepared for the U.S Monetary Policy Forum in New York on Friday, Brainard said the People’s Bank of China’s pilot program for its digital yuan could have implications on the dollar’s dominance in cross-border payments and payment systems. However, a digital dollar could allow people around the world to continue to rely on its fiat counterpart. “It is prudent to consider how the potential absence or issuance of a U.S. CBDC could affect the use of the dollar in payments globally in future states where one or more major foreign currencies are is...
China’s central bank releases pilot version of digital yuan wallet
As China’s central bank steps up its effort to create a digital currency, the country has released a pilot edition of its digital yuan wallet application on mobile phone app stores. The People’s Bank of China (PBoC) digital currency research institute developed the “e-CNY (Pilot Version)” app, which was available for download on Chinese Android and Apple app stores on Tuesday in Shanghai. According to a tweet from BlockBeats, a local news source, individual users in China now can download an earlier version of the app to test opening and managing a personal wallet, as well as digital yuan transactions. The e-CNY app is now available on iOS and Android app stores. This App is the official service platform of China’s CBDC for individual users to carry out pilot trials, providing e-CNY ...
