The Bank of Thailand continues to investigate central bank digital currency solutions
The Bank of Thailand (BOT) recently announced that it is developing a prototype payments system that would rely on a central bank digital currency (CBDC) to facilitate payments. This new project extends the BOT proofs-of-concept using Corda and Hyperledger.
Netherlands central bank supports a digital Euro
With central banks all over the world considering digital currency implementations, the Netherlands central bank, De Nederlandsche Bank (DNB), has released a central bank digital currency report.
Launch plan for China’s central bank digital currency accelerates
New reports have provided fresh insight into China’s central bank digital currency. It may be launched as soon as November and will be first issued to seven leading Chinese institutions.
Bank of International settlements warns against central bank cryptos
The Bank of International Settlements (BIS) - or the central banks’ central bank - has warned global central banks they could endanger the stability of the financial system if they create their own digital currency in a bid to quash competition from established cryptocurrencies like Bitcoin and Ethereum.
Central bank cryptocurrencies
New cryptocurrencies are emerging almost daily, and many interested parties are wondering whether central banks should issue their own versions. But what might central bank cryptocurrencies (CBCCs) look like and would they be useful? This feature provides a taxonomy of money that identifies two types of CBCC a retail and wholesale a and differentiates them from other forms of central bank money such as cash and reserves. It discusses the different characteristics of CBCCs and compares them with existing payment options.
The central bank of Jamaica is actively building cryptocurrency awareness
The Jamaica Information Service (JIS) recently reported that the government is actively “building cryptocurrency awareness.” The statement was provided on Wednesday, by the Bank of Jamaica (BOJ) Deputy Governor Livingstone Morrison, at the central bank’s quarterly media briefing. Morrison says the central bank must create opportunities for the exploitation of certain technologies, including cryptocurrency, while pointing out that such technologies should not pose undue risk to the local financial system. The Bank has also established an internal group of persons who are working to build awareness of these kinds of technological happenings across the world. The group are also guiding regional efforts.
European Central Bank assessing ‘cash-like’ digital money
Yves Mersch, a member of the Executive Board of the European Central Bank (ECB), recently gave a [speech](https://www.ecb.europa.eu/press/key/date/2017/html/sp170116.en.html) discussing the details of a Central Bank-controlled digital currency referred to as Digital Base Money (DBM). Mersch says the ECB is currently considering the adoption of DBM, in one of two forms, centrally-controlled accounts somewhat like debit cards or Paypal, and an anonymous, cash-like DBM, which would be more like a cryptocurrency.
Bank of England states central bank-issued digital currency will compete with commercial banks
Bank of England (BoE) Chief Cashier and Director for Notes, Victoria Cleland, recently gave a [speech](http://www.bankofengland.co.uk/publications/Documents/speeches/2016/speech919.pdf) highlighting the Bank's work on central bank-issued digital currency (CBDC). Clelands keynote presentation was given at the second international workshop for [P2P Financial Systems](http://blockchain.cs.ucl.ac.uk/p2pfisy-2016/) in London on Sept. 8 and 9. The BoE co-sponsored the event with Bank of Canada, Deutsche Bundesbank, House of Finance, Federal Reserve Bank of St. Louis, and UCL Research Centre, bringing together scholars, regulators, and practitioners.
The macroeconomics of central bank issued digital currencies
This paper studies the macroeconomic consequences of a central bank granting universal, electronic, 24x7, national-currency-denominated and interest-bearing access to its balance sheet via the issuance, according to well-specified policy rules, of a central bank digital currency (CBDC). To study this issue we use a monetary-financial DSGE model, calibrated to match the United States in the pre-crisis period, that models CBDC as an imperfect substitute for bank deposits in the provision of monetary transaction services, and that models bank deposits as being created through loans or asset purchases as in Jakab and Kumhof (2015).
Should Cryptocurrencies Be Included In The Portfolio Of International Reserves Held By The Central Bank Of Barbados? (Working paper)
In most countries, the central bank is required to hold reserve assets as a means of providing credibility for the value of the fiat currency. These assets can be in the form of gold, foreign exchange, or some other internationally recognised reserve asset and are held to permit the country to engage in international transactions. Within recent years, cryptocurrencies have been increasingly utilised for international transactions, and it is possible there use might expand in the future. This paper therefore examines the potential role of cryptocurrencies as part of the portfolio of external assets held by a central bank. Using the case of Barbados, the paper also provides a simulation of the effect holding some proportion of their asset base would have had on the stability of the foreign reserves as well as the return on the portfolio of assets.
