Central Bank Digital Currencies

(BIS) and its central bank partners have successfully demonstrated real-time compliance checks within each transaction. Before a transaction initiates, all compliance requirements—such as anti-money laundering (#AML) checks and foreign exchange controls—will be verified, allowing the system to issue a compliance proof. Building upon insights from earlier initiatives like Project Dunbar, which explored multi-central bank digital currency (mCBDC) platforms, Project Mandala aims to create a unified protocol that could facilitate smoother transactions involving digital assets, such as CBDCs and tokenized deposits. By automating compliance and aligning with Financial Stability Board guidelines, Mandala is set to improve the efficiency, security, and transparency of international payments, potentially serving as a foundational compliance layer for both current and emerging payment systems #CBDC #cbdcs #blockchain #token #data #compliance #uk #eu #digitaleuro #ether #stablecoin #KYC #AML #payments #Banking https://lnkd.in/eufSRGWz.

The G20 Roadmap for Enhancing Cross-Border Payments is a comprehensive initiative launched in 2020 aimed at addressing inefficiencies in international payments. The key objectives of the roadmap are to make cross-border payments faster, cheaper, more transparent, and universally accessible, while also ensuring they are secure. #payments #banking #cbdc #blockchain #blockchainnews #cbdcs #stablecoins https://lnkd.in/gg-Di77H

As financial systems become more interconnected, establishing effective interlinking arrangements is critical to ensuring that payments are fast, efficient, and secure on a global scale. https://lnkd.in/efVdDkJD #payments #blockchain #CBDC #banks #crypto #btc #ether #usdt #stablecoin

CBDCs can introduce significant shifts in balance sheets. IMF report highlights that central banks should design CBDCs in ways that encourage their use primarily as a means of payment (rather than as a store of value), which would limit the conversion of bank deposits to CBDC. Zero / negative remuneration on CBDC holdings and setting limits on CBDC balances are proposed to prevent disintermediation, which could otherwise undermine banks' ability to lend effectively. https://lnkd.in/eufqKC7M #CBDC #blockchain #banking #euro #france #usdt #blockchainnews #crypto

Programmability ( smart contracts) will enable the creation of new financial products and services, such as conditional payments (e.g., pay upon delivery), automated compliance checks, and complex financial contracts that will execute automatically based on real-time data inputs. According to IMF, programmable digital payment and settlement features could revolutionize the financial landscape, providing both opportunities and challenges for central banks, financial institutions, and the broader economy. The potential of programmability to create new financial products and services, such as conditional payments (e.g., pay upon delivery), automated compliance checks, and complex financial contracts that execute automatically based on real-time data inputs, is truly exciting. https://lnkd.in/ebgJR9HU. #blockchain #smartcontracts #ether #ethereum #crypto #stablecoin #payments #banking #data #fintech #regtech #cbdc #cbdcs #retailcbdcs #wholesalecbdc #dlt #eu #uk #technology

Project Pyxtrial Summary:  Development of technology solutions that provide real-time monitoring of stablecoin balance sheets, enable transparency and accountability, and prevent financial instability. Project Pyxtrial, a joint initiative by the Bank for International Settlements (BIS) Innovation Hub and the Bank of England, is pioneering a novel approach to supervising and monitoring asset-backed stablecoins. As the use of stablecoins grows in global financial markets, ensuring that these digital currencies are adequately backed by real assets is critical for maintaining financial stability. Project Pyxtrial aims to address this need by developing advanced technological tools that provide continuous and real-time oversight of the financial health of stablecoins. Project Pyxtrial is not just about exploring new technologies, but also about redefining the speed of financial supervision. The traditional methods, which rely on periodic reports and audits, are often inadequate for the fast-paced and global nature of digital currencies. Recognizing this gap, Project Pyxtrial is pioneering the use of modern technology to monitor stablecoin backing in real time, thereby providing more timely and accurate insights into the risks associated with these digital assets. At the heart of Project Pyxtrial is a sophisticated data analytics pipeline that has been designed to monitor the backing of stablecoins. The pipeline begins by gathering data from stablecoin issuers and other relevant sources. This data includes detailed information about the assets held in reserve, the liabilities represented by the stablecoins in circulation, transaction histories, and other financial metrics critical to assessing the stability of the stablecoin. The core of Project Pyxtrial's innovation lies in its data analysis capabilities. This includes real-time calculations of whether the reserve assets are sufficient to cover the liabilities at any given moment. The analysis can identify trends, detect anomalies, and flag potential risks before they become critical. https://lnkd.in/eDr2Ey8y #data #cbdc #cbdcs #stablecoin #usdt #tether #stablecoins #usdc #crypto #cryptonews #blockchain #ether #bitcoin #exchange #blockchain

BIS Innovation Hub London / Bank of England will launch Project Keystone. Project Keystone aims to deliver a standardised, off-the-shelf solution that can be seamlessly integrated into various payment systems, enhancing their functionality and compliance with modern standards like ISO 20022. Keystone will reduce implementation #time and costs, making it an attractive option for a wide range of financial institutions. A plug-and-play solution, meaning payment system operators can easily incorporate it into their existing infrastructure without extensive customisation. Keystone will be developed with a strong focus on #regulatory #compliance, ensuring that it meets the latest requirements for data security, anti-money laundering (AML), and know-your-customer (KYC) standards. The project will also include advanced security features to protect against cyber threats, ensuring the integrity and confidentiality of financial transactions. https://lnkd.in/etKtjanv #data #banks #blockchain #technology #Banking #iso #payments #fintech #cbdc #cbdcs #stablecoin #tokens #tokenised #digitalassets #software

The European Central Bank is developing the digital euro to mirror cash's privacy and accessibility, amid rising digital payments and declining cash usage in the euro area. #digitalcurrency #stablecoins #cbdc #digitaleuro #pound #payments  #banking #finance #data #dlt #london #fintechnews #cryptocurrency  #blockchain #latestnews #stablecoin #digitalpayment #BIS #crossborder https://lnkd.in/eDqUDUWN

China and Kazakhstan's central banks have agreed to cooperate on digital currency, following President Xi Jinping's visit to Kazakhstan. #digitalcurrency #stablecoins #cbdc #digitaleuro #pound #payments  #banking #finance #data #dlt #london #fintechnews #cryptocurrency  #blockchain #latestnews #stablecoin #digitalpayment #BIS #crossborder https://lnkd.in/d8uMs4NU

Taiwan's central bank is starting wholesale CBDC trials, focusing on interbank settlements for tokenized deposits, with no rush for issuance, says Governor Yang Jinlong. #digitalcurrency #stablecoins #cbdc #digitaleuro #pound #payments  #banking #finance #data #dlt #london #fintechnews #cryptocurrency  #blockchain #latestnews #stablecoin #digitalpayment #BIS #crossborder #wholesale #tokenization https://lnkd.in/dQr_PUxJ