Yves Longchamp’s Post

Today's #Fintech Digest includes: - The January 2024 closure of the Eastern Caribbean Central Bank (ECCB) DCash pilot while "version 2.0" is prepared for launch (I had thought that there would be a seamless upgrade, but I stand corrected!) - An IMF proposal for a framework for comparing retail central bank digital currency (#CBDC) with fast payment and e-money systems from a payments perspective. - The US Securities and Exchange Commission (SEC) filing a notice of appeal in its lawsuit against Ripple for alleged illegal securities (ie #XRP) sales. - SWIFT planning to start live trials of digital assets and currency transactions over the SWIFT network in 2025. For more detail go to: https://lnkd.in/e26qAqyr

🙅♂️ "You can't tell whether a token has already been used, so tokens are especially susceptible to a double-spending attack." I often hear this myth. But the truth is: accounts don't solve double spending either! 📵 The challenge is with offline capability, which causes information asymmetry. No matter what data you pass between payer and payee, the payee will only ever have local knowledge of the system’s state. But double spending is a global property that can only be determined by the central bank. 💰 Therefore, to prevent double spending, you need to have multiple layers of defence: secure hardware wallets, clever payment protocols, and a central bank ledger that acts as the ultimate authority. My latest piece on The Paypers: https://lnkd.in/d2BXSegy

IMPORTANT: The Basel Committee of Banking Supervision (BCBS) has laid out some guidelines for banks to adhere to, while engaging with crypto assets, in order to maintain financial security. Here's my first story on the subject for NDTV Gadgets 360 I am looking to file another copy, with opinions from the banking, financial policy, and crypto sectors. Please comment to connect if you have responses to share. https://lnkd.in/dKgms9Bd

Banking and #CBDC Weekend Roundup 28/07/2024 For all the key details of new DLT projects in the banking world, #RWA tokenization, stablecoins, and CBDC updates, check out our latest post 👇 🔗 https://lnkd.in/dF78HDxB #cryptonews

Exploring the future of money: centered on humanity's freedomIn today's economy, digital money mirrors physical cash traits, enabling direct, fee-free transactions and improving financial operations. Research from McKinsey unveils that US households faced a 3.78% income loss monthly in 2021 due to conventional banking fees. By incorporating distinct, verifiable digital coins, transactions become seamless, overcoming privacy concerns and cost barriers, facilitating swift and free asset transfers. To ensure security, quantum-safe central bank digital currencies leverage quantum randomness and innovative encryption techniques like Trans-Vernam, reinforcing their effectiveness with mathematical proofs. https://okt.to/6Pcxa5

Surprisingly future-phobic editorial which highlights the opportunity to better understand all that technology enables. The reality is your kids' pocket money will soon be sent to them this way - sooner than you think. Stored on the secure element on a mobile, protected with biometrics and passkeys, will work offline. Much safer and smarter than a piggybank. BTW your existing card network and BigTech "pay" wallets already know far more about how you spend your money than a central bank ever will. Are you ready? #cbdcs #digitalpound #digitaleuro #digitaldollar

Technologies such as distributed ledgers create the possibility of new forms of digital money, whether privately-issued ‘stable coins’, tokenised commercial bank deposits, or central bank digital currencies. Authorities are considering a world where digital money circulates alongside existing forms of money. In the past, the nature of money has often changed. Prior to the late-seventeenth century, English money comprised predominantly silver coin and in the subsequent two centuries mainly gold coin, before evolving to include paper banknotes and bank accounts linked to card, internet and app-based payment systems. But what can a previous period when money changed – 1695–97, when paper money first began to circulate alongside coin – a possible transition to digital money?

Digital currency advocates #digitalinnovation and has the potential to democratize access to finance. While it enables bilateral privacy payments and contributes to economic and financial inclusion, it faces many operational, security, and monetary challenges. Some insights! https://lnkd.in/ekRkh57A

📚 Long read Summary Alert: "How is Money Created" 🌍💰 Great read from Dr Michael Salmony   Ever wondered about the magic behind money creation? 💡   🏦 “Most of the money no longer even comes from the central bank. It is actually created by commercial banks. Although these high street banks cannot create money in the way central banks do - for example, they can't print bank notes - they do create money: every time they issue a loan for EUR 10,000 maybe they only need to have EUR 1000 of real central bank money. The rest is created out of thin air digitally using ones and zeros in their computer. This ‘fractional reserve banking system’ has largely worked well since the 1600s”. If you are interested to read more about money creation and what happended during during the financial crisis, good to watch: 97% owned a documentary that reveals how the creation of credit and the mystery that surrounds it. https://bit.ly/46GCsFP The article explores:  🔍 Central Bank Digital Currencies (CBDC) policy goals:   Preserving access to the public money (basis of trust and its exchangeability with private money) Strategic autonomy (EU product / scheme) Efficiency and innovation Access to digital financial services to everybody Resilience, back-up (offline, online)   🏦 Private Banks' Reluctance re CBDC   Business model – what is the incentive to support distribution of CBDC (KYC cost, manage wallets, customer service etc) The move to central bank money will reduce their liquidity (the spectre of a bank run to a risk-free asset) and thus hit them where it hurts the most, their core business of lending   👥 Consumers' Take:   Assurance with a bank guarantee up to €100K. Questioning the value of a risk-free €3K. They have cash, cards, wallets, what is the problem?   🛍️ Merchants' Perspective:   A likely easy sell! Imagine an electronic payment solution uniform across Europe, instant settlement, and no hefty card fees!   💡 An intriguing read for anyone curious about the intricacies of our financial system and the evolving landscape of digital currencies! stay tuned for more instalments Mirela C.   #Finance #Banking #CBDC #Innovation #DigitalCurrency  

HIGH DRAMA ABOUT CBDC? (...not a marijuana-derived product, but a “central bank digital currency” – a sort of federal bitcoin.) As secured transactions, auto loans are typically guided by the Uniform Commercial Code. The UCC is a model code that each of the fifty states can adopt, or not, as they see fit. The group that oversees the UCC periodically updates it as business realities change or as areas where the Code could be improved become evident. Although states’ enactment of changes to the UCC is haphazard, given the subject matter it’s rarely a point of high drama.   The announcement by South Dakota that it had adopted the latest revisions to the UCC seems to fit that pattern but note that it followed an unusual veto of a very similar bill last year. At the time, Governor Kristi Noem in her veto message alluded to the bill opening the door “to a potential future overreach by the federal government.”   Check out the rest of the article by defi VP of Compliance Michael Gordan. #autocompliance #cbdc #hotinauto https://bit.ly/4aXdIvC