Tag: currencies

Central banks eager to master digital currencies

Most central banks across the world are now scrambling to master the concept of digital currencies, a disruptive technology once they looked upon with regulatory scepticism.
Seeking to win a first-mover advantage in the race, China’s central bank is issuing 10mn yuan ($1.5mn) worth of digital currency to 50,000 randomly selected consumers in what some see as the country’s first public test of the digital yuan payment system.
The People’s Bank of China’s (PBoC) campaign comes as central banks worldwide race to issue digital currencies to modernise payments systems, as well as to fend off potential competition from privately issued cryptocurrencies.
Others are catching up, too.
Last Friday, a group of seven major central banks, including the US Federal Reserve set out how a digital currency might look, in a bid to catch up with China’s “trailblazing” and leapfrog private projects like Facebook’s Libra stablecoin.
European Central Bank president Christine

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Central Bank Policies Weigh On The Value Of The Dollar And All Fiat Currencies (NYSEARCA:UDN)

On October 1, I suggested that the dollar index bounce would run out of upside steam sooner rather than later. In that piece, I wrote, “I continue to favor selling the dollar on a scale-up basis during the current rebound.” On October 1, the dollar index was trading at around the 94 level. On October 2, it reached a high of 94.09. Since them, the index has been back on slippery slope lower and was just above the 93 level on Monday, October 12.

The dollar is the world’s reserve currency, and the dollar index measures the value of the US currency against other reserve currencies. The index has a 57.6% weighting against the euro, the second leading reserve currency. Status in the exclusive club is limited to foreign exchange instruments that central banks worldwide favor as currency holdings. For most monetary authorities, the dollar and euro

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No current plans for central bank to adopt digital currencies

Kansas City Fed President Esther George said Monday that the Federal Reserve is continuing its research on central bank-issued digital currencies, but that there are no plans at the moment to actually launch one in the U.S.

“I think it’s prudent that we do our homework and think about what that entails,” George told Yahoo Finance at the Sibos conference organized by the Society for Worldwide Interbank Financial Intermediation (SWIFT).

For the last few years, the Fed has been conducting “in-house experiments” on the use cases for distributed ledger platforms. But the central bank is now extending its research by looping in the Massachusetts Institute of Technology to actually build and test a hypothetical digital currency.

Fed Governor Lael Brainard, who has headed efforts on central bank digital currencies alongside George, said in August that their interest is focused on the “opportunities and limitations of possible technologies.”

Kansas City Federal Reserve Bank President Esther George addresses the National Association for Business Economics in Denver, Colorado, U.S. October 6, 2019. REUTERS/Ann Saphir
Kansas City Federal
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Mastercard launches testing platform for digital currencies


Mastercard launches testing platform for digital currencies

Lawrence Agcaoili (The Philippine Star) – September 15, 2020 – 12:00am

MANILA, Philippines — Mastercard has launched a testing platform for digital currencies to allow central banks to evaluate the suitability of central bank digital currencies (CBDC) in a country or a region.

Raj Dhamodharan, executive vice president for digital asset and blockchain products and partnerships at Mastercard, said central banks have accelerated their exploration of digital currencies with a variety of objectives from fostering financial inclusion to modernizing the payments ecosystem.

“Mastercard is driving innovation with the public sector, banks, fintech and advisory firms in the exploration of CBDCs, working with partners that are aligned to our core values and principles. This new platform supports central banks as they make decisions now and in the future about the path forward for local and regional economies,” Dhamodharan said.

With the global economy

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Mastercard launches virtual testing environment for central bank currencies

Mastercard announced on Wednesday the release of a proprietary tool targeted to central banks that wish to test their Central Bank Digital Currency, or CBDC.

Over 70% of central banks are entertaining the idea of a digital currency in some form, a Bank of International Settlements report noted. While few have moved into actual concept and experimentation, the tool released by Mastercard aims to make testing simpler.

The tool simulates various types of transaction environments to let central banks evaluate CBDC use cases. It mimics the issuance, distribution and exchange of CBDCs between banks, financial services companies and consumers. 

Mastercard called for partners to use the platform to evaluate the effectiveness of CBDC’s technological designs, proposed use cases and the interoperability with existing payment methods.

Curiously, one of the possibilities of the virtual sandbox is demonstrating “how a CBDC can be used by a consumer to pay for goods and

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Daily Mirror – Mastercard launches CBDCs testing platform enabling central banks to explore national digital currencies


With the global economy racing to embrace digital payments, central banks also are looking to the future and investigating how to support innovation while maintaining monetary policy and financial stability as they issue and distribute currency.

In fact, 80 percent of central banks surveyed are engaging in some form of Central Bank Digital Currencies (CBDCs) work, and about 40 percent of central banks have progressed from conceptual research to experimenting with concept and design, according to a recent survey by the Bank for International Settlements.

Recently, Mastercard announced a proprietary virtual testing environment for central banks to evaluate CBDC usecases. The platform enables the simulation of issuance, distribution and exchange of CBDCs between banks, financial service providers and consumers. Central banks, commercial banks, and tech and advisory firms are invited to partner with Mastercard to assess CBDC tech designs, validate usecases and evaluate interoperability with existing payment rails available

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Mastercard Unveils Testing Platform for Digital Currencies

Mastercard Inc. MA has launched a proprietary virtual platform for the testing of central bank digital currency (CBDC) use cases.

The platform enables the simulation of issuance, distribution and exchange of CBDCs among banks, financial service providers and consumers. Central banks, commercial banks, and tech and advisory firms are invited to partner with Mastercard to assess CBDC tech designs, validate use cases and evaluate interoperability with the existing payment rails available for consumers and businesses today.

This strategic move by Mastercard reflects its efforts to enable the practical, safe and secure development of digital currencies, which are gaining prominence as the global economy is moving toward digital payments.

This trend is prompting central banks to explore CBDCs and look for innovative ways to maintain monetary policy and financial stability as they issue and distribute currency. CBDCs are also going to be a catalyst for modernizing the payments ecosystem.

Mastercard will

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Mastercard Releases Platform Enabling Central Banks to Test Digital Currencies

(Mastercard)

Payments giant Mastercard has released a platform that allows central banks to test how proposed central bank digital currencies (CBDCs) would work in real life.

  • Mastercard announced Wednesday it had launched a virtual testing environment that can simulate issuance, distribution and exchange of CBDCs between banks and financial service providers, as well as end-consumers purchasing everyday goods and services.
  • In a statement, Mastercard said the new protocol would help financial institutions understand the feasibility of CBDCs and allow them to explore new use cases, including issuance at a local or regional level.
  • They can further evaluate compatibilities with existing payment rails such as payment cards.
  • A facility to analyze and compare different proposed tech stacks for CBDCs is also included.
  • Talking to Forbes, Raj Dhamodharan, Mastercard’s executive VP, said his firm is already working with some central banks and that other entities, such as banks or tech firms, are being
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Mastercard Launches Central Bank Digital Currencies (CBDCs) Testing Platform, Enabling Central Banks to Assess and Explore National Digital Currencies

PURCHASE, N.Y.–(BUSINESS WIRE)–With the global economy racing to embrace digital payments, central banks also are looking to the future and investigating how to support innovation while maintaining monetary policy and financial stability as they issue and distribute currency. In fact, 80 percent of central banks surveyed are engaging in some form of Central Bank Digital Currencies (CBDCs) work, and about 40 percent of central banks have progressed from conceptual research to experimenting with concept and design, according to a recent survey by the Bank for International Settlements.

Today, Mastercard announced a proprietary virtual testing environment for central banks to evaluate CBDC use cases. The platform enables the simulation of issuance, distribution and exchange of CBDCs between banks, financial service providers and consumers. Central banks, commercial banks, and tech and advisory firms are invited to partner with Mastercard to assess CBDC tech designs, validate use cases and evaluate interoperability

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Mastercard builds platform to pilot central bank digital currencies

LONDON (Reuters) – Mastercard MA.N is creating a platform to help central banks “virtually” test how digital currencies could be developed and used, the payments company said on Wednesday.

Facebook’s FB.N Libra multi-currency backed stablecoin proposal prompted central banks to look at whether they could launch digital versions of their currencies.

“This new platform supports central banks as they make decisions now and in the future about the path forward for local and regional economies,” said Raj Dhamodharan, executive vice president for digital asset and blockchain products at Mastercard said in a statement.

The platform enables the simulation of issuance, distribution and exchange of central bank digital currencies between banks, financial service providers and consumers, Mastercard said.

Controlled regulatory environments are already being used by start-ups to test new payments services from fintech companies.

Central banks are still in the early stages of looking at potential digital currencies, with the

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