Russian central bank exec is OK with crypto mining under one condition

Kirill Pronin, head of the Russian Central Bank (CBR)’s department of financial technologies, acknowledged the possibility of crypto mining legalization under certain conditions. A public acknowledgment like this makes a rare case, as the CBR continues to lead the battle against the efforts to legalize crypto in the country.  The executive expressed his views on mining at the Saint-Petersburg International Legal Forum on Wednesday, June 29. During the session, dedicated to cryptocurrencies, Pronin revealed that CBR doesn’t take the same kind of hardline position on mining as it does in…

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Taiwan central bank governor considers interest-free CBDC design to prevent fiat deposit flight

As reported by local news outlet bnext.com on Wednesday, Chin-long Yang, governor of the Central Bank of the Republic of China (Taiwan), recommended a no-interest design for the country’s central bank digital currency, or CBDC, pilot. In explaining the decision, Yang said that a CBDC where interest is paid on digital asset deposits would likely become a replacement for fiat New Taiwan dollar (NT$) deposits in banks. “Once the banks’ available deposits decrease,” Yang explained, “it would lead to a corresponding increase in the cost of financing and thereby increase…

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Central African Republic president launches crypto initiative following Bitcoin adoption

Faustin-Archange Touadéra, president of the Central African Republic, has announced the government will be backing an initiative centered around developing the country’s blockchain infrastructure. In a Monday announcement on Twitter, Touadéra said the CAR government would be launching Sango, a crypto initiative proposed following the country’s adoption of Bitcoin (BTC) as legal tender in April. According to Sango’s website, the government intends to launch the program during a July 3 event in which the president, members of his cabinet and industry experts will discuss the physical and digital infrastructure needed…

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Central Bank of Qatar in “Foundation Stage” of Issuing Its Digital Currency

Qatar’s Central bank is exploring technological solutions and platforms to launch its digital currency. Qatar, with a population of 2.8 million, is about to join the growing list of countries adopting the central bank digital currency (CBDC) concept. In the latest development, the Qatar Central Bank (QCB) has started the foundation stage of issuing its digital currency. QCB Governor Sheikh Bandar bin Mohammed bin Saoud Al Thani explained that the bank is currently working to find technological solutions for its digital currency. He said this during the “Inflation Test” session…

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Qatar Central Bank in ‘foundation stage‘ of launching digital currency

The 2.8-million nation of Qatar is going to join a growing range of countries experimenting with the central bank digital currency (CBDC) concept. The Qatar Central Bank (QCB) is currently “in the foundation stage” of issuing its digital currency.  On Tuesday during the “Inflation Test” session at the Qatar Economic Forum, QCB Governor Sheikh Bandar bin Mohammed bin Saoud Al Thani revealed that the bank is working to find technological solutions for its CBDC. Right now the project is in its early stage, Al Thani specified: “Many central banks are…

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BIS compares projects to transfer central bank digital currencies across borders

The Bank of International Settlements (BIS) Innovation Hub released a report Tuesday looking at four projects that examined wholesale central bank digital currency (CBDC) transfers across borders. The projects demonstrated the technical feasibility of the transfers, the BIS found, but practical and policy issues remain outstanding.  The report considered the Jura project involving the central banks of Switzerland and France. Project Inthanon- LionRock2 and the ongoing mBridge project, involving currencies in Asia and the Middle East, were also examined, as was Project Dunbar, a joint effort of Australian, Malaysian, Singaporean…

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Bank of Israel experiments with central bank digital currency smart contracts and privacy

On Monday, the Bank of Israel released the results of a lab experiment that examined user privacy and the use of smart contracts in payments. This was the central bank’s first technological experiment with a central bank digital currency (CBDC). The first stage of the experiment modeled the sale of a car within a two-tier system with an intermediary payment service provider. The bank said that the service provider completed Know Your Customer (KYC)/Anti-Money Laundering (AML) checks and provided the necessary blockchain addresses. A nonfungible token (NFT) was issued to…

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90% of Central Banks are researching the utility of CBDCs

In a new annual economic report published by the Bank of International Settlements (BIS), the financial institution revealed that approximately 90% of central banks worldwide are investigating the feasibility of adopting central bank digital currencies, or CBDCs. The BIS report highlighted the ability of current sovereign fiat money to provide (relative) price stability and public oversight while criticizing crypto’s inability to perform “basic fundamental functions of money” and their opacity with regards to accountability to the general public.  However, the report did highlight crypto’s programmable nature as well as the…

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Atlantic Council looks at how to maintain central bank digital currency cybersecurity

The U.S. thinktank Atlantic Council released a report Wednesday on cybersecurity issues related to central bank digital currencies (CBDC). The authors provide a generalized discussion of CBDC security, but with a clear focus on the United States and issues specific to it. They determined that the security risks presented by a CBDC depend heavily on its design, with performance, security and privacy being balanced variously in different designs. The report looked at six design options, only three of which are being considered or deployed in real life. Privacy was identified as…

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Central authorities have demonized privacy — Crypto projects must fight back

Zcash (ZEC), a privacy coin that launched in 2016, unveiled an upgrade to its system on May 31 that will allow users to more easily make private, trustless digital cash payments on mobile phones. Not everyone would view this as a good development. The unfamiliarity, uncertainty and public intrigue surrounding privacy — including its complexity, misuse and speculative activity — presents a number of challenges and reputational issues for innovating crypto projects. While a core tenet and source of pride among crypto projects such as Zcash, privacy has been demonized…

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