Tag: currency

Today In Payments: Banks Frame Digital Currency

In today’s top news, the Federal Reserve and seven central banks are collaborating on a framework for digital currency, and Amazon India prepares for its festive season with a $95.5 million boost. Plus, Affirm files for an IPO.

Fed, Central Banks Frame Criteria For Digital Currency

The Federal Reserve is collaborating with seven central banks and the Bank for International Settlements (BIS) to hammer out a framework for digital currency. However, Jon Cunliffe, deputy governor at the Bank of England (BoE) said that he did not think any single approach to a central bank digital currency (CBDC) would end up dominating.

Amazon India Gets $95.5M For Month-Long Festive Season

Amazon India got an infusion of 7 billion rupees ($95.51 million) in advance of the upcoming festive season, which kicks off with sales on Saturday, Oct. 17, ahead of Hindu festivals Dussehra and Diwali.

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China not among major central banks in talks on global digital currency principles



Central bankers from a handful of developed countries recently formed a working group to discuss sovereign digital currencies, but none of the participants have formally decided to issue one. Photo: Shutterstock


Central bankers from a handful of developed countries recently formed a working group to discuss sovereign digital currencies, but none of the participants have formally decided to issue one. Photo: Shutterstock

China was not included in recent talks among central bankers from developed nations on potential collaboration involving central bank digital currencies (CBDCs) that are technologically complementary and can coexist within a wider international payments ecosystem.

A working group was formed by the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, Sweden’s Riksbank, the Swiss National Bank and the US Federal Reserve, along with the Bank for International Settlements (BIS), all of which are said to share a common motivation – avoiding unintended barriers for transferring sovereign currencies in their electronic forms.

The People’s Bank of China (PBOC) was conspicuously absent from the international group, despite China being a world leader in testing

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Major Chinese Bank Launches Central Bank Digital Currency Wallet Briefly

One of China’s biggest banks recently opened up registration for wallets using the country’s central bank-backed digital currency. There are four levels of the wallet, according to reports. However, the bank took the offer down a few hours later.

China’s Digital Currency Wallet Launch

China Construction Bank (CCB), one of the country’s largest state-owned banks, reportedly launched a digital renminbi wallet in its official app Saturday, Sina reported citing a 21st Century Business Herald reporter. Users in the areas where the digital yuan is being tested, such as those in Shenzhen, reportedly could register for the wallet.

The bank’s user agreement explains that the services provided by the digital renminbi wallet include payment, redemption, transfer, and credit card recharge, the publication detailed, adding that there are four levels of the digital renminbi wallet with varying balance and payment limits.

Major Chinese Bank Launches Central Bank Digital Currency Wallet Briefly
Screenshots of the CCB’s digital renminbi wallet, courtesy of 21st
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‘One day everyone will use China’s digital currency’

Chandler Guo, pioneer in crypto-currencyImage copyright
Chandler Guo

Image caption

Chandler Guo at one of his cryptocurrency mines

Chandler Guo was a pioneer in cryptocurrency, the digital currencies that can be created and used independently of national central banks and governments.

In 2014 he set up an operation to produce one of those currencies, Bitcoin, in a secret location in western China.

“Mining” Bitcoin is a power hungry enterprise involving dozens of computers so he used power from a hydroelectric station, in partnership with a local Chinese government official.

At its peak his machines were capable of mining 30% of the world’s Bitcoin. He believed Bitcoin would one day change the world and replace the dollar.

But now he sees a new force emerging – a payment system created by the Chinese state and known as Digital Currency Electronic Payment (DCEP).

It’s really a digital version of China’s official currency, the yuan, and Mr

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JD.com Joins China’s Bank On Digital Currency

As China prepares to debut digital currency, JD.com Inc., one of the biggest eCommerce businesses in China, has partnered with the central bank to advance the technology.

CoinTelegraph.com reported the retailer has entered into a partnership with the Digital Currency Research Institute of the People’s Bank of China (PBoC).

The news outlet’s story was based, it said, on a local media report Monday (Sept. 21) that JD Digital Technology and the PBoC will develop mobile apps and blockchain platforms in line with the coming digital currency.

These apps are expected to support the digital renminbi, the official currency of China, and will be integrated with JD Group’s platforms.

The idea is for the corporation and the central bank to craft wallets that support China’s digital currency. The central bank’s research institute has said that a pilot program is expected to be launched, in

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Mastercard launches blockchain virtual currency test platform for central banks

Over the past few years, Mastercard Inc. has been working on testing a distributed ledger blockchain platform for allowing central banks to exchange currency. Now the financial services giant is ready to launch a Central Bank Digital Currency test platform for that purpose.

According to the Bank for International Settlements, 80% of central banks surveyed have engaged in some form of Central Bank Digital Currency work, and about 40% of central banks have progressed from conceptual research to experimenting with concept and design.

Mastercard’s proprietary virtual testing environment, the “Mastercard Content Exchange,” will evaluate CDBC use cases for central banks and enable the simulation of issuance, distribution and exchange of CDBCs between banks, financial service providers and consumers.

Central banks, commercial banks and advisory firms are invited to partner with Mastercard to access the CDBC models, validate use cases and evaluate interoperability with existing payment trials for customers and businesses.

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Mastercard launches digital currency kit for central banks

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In the 10 years since Bitcoin came on the financial scene, central banks have quietly been dabbling in digital currencies of their own. Now, Mastercard has unveiled a tool designed to simulate how those currencies would work in the real world.

The payments giant announced the project on Wednesday morning, calling it the Central Bank Digital Currencies Testing Platform—a bland title to be sure, but one likely to find favor with cautious central bankers.

For central banks, including the Federal Reserve, a purely digital currency—one not linked to coins or paper bills—would represent a step beyond the existing system of electronic money transfer. A central bank could, for instance, distribute money directly to consumers without relying on commercial banks as intermediary.

State-backed digital money also offers the potential

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