Ripple: Most financial institutions plan to use crypto within three years

A report by Ripple suggests that most financial institutions plan to start using crypto within the next three years.

Despite the bear market, financial institutions remain interested in the cryptocurrency space. Just this week, $10 trillion asset manager BlackRock launched a spot Bitcoin trust while saying that it’s also exploring “permissioned blockchains, stablecoins, cryptoassets, and tokenization.”

While BlackRock is exploring the potential financial benefits...

2.6 million Shenzhen residents sign up for digital yuan airdrop

Shenzhen, China

More than 2.6 million of Shenzhen’s 18 million residents signed up for the Chinese city’s upcoming airdrop of 30 million digital yuan, or e-CNY.

City officials announced the airdrop two months ago as part of a recovery plan to stimulate consumer spending after the country’s most stringent coronavirus lockdown to date.

Digital yuan is the Chinese government’s take on a central bank digital currency and, although still in its pilot stage, has seen millions of...

Millicent Labs demos full-reserve digital currency for UK government

Blockchain fintech company Millicent Labs has completed a sandbox test for a full-reserve digital currency (FRDC) with co-funding from the UK government’s Research and Innovation branch.

An FRDC is a privately issued digital currency pegged to a fiat currency, according to Millicent. The company believes it avoids the pitfalls of central bank digital currency and stablecoins while bridging blockchain technology with traditional finance.

Millicent plans to introduce a...

Digital dollar would destroy commercial banking sector, Wall Street warns

US banking lobbyists have argued against the Federal Reserve – the country’s central bank – developing and introducing a central bank digital currency (CBDC).

Having released a report on the potential of the “digital dollar” in January, the Fed invited and received thousands of comments from individuals and organisations alike.

Chief amongst these were profound criticisms and warnings from Wall Street and national banking groups.

The Washington-based...

Bank of England joins MIT as CBDC research partner

The Bank of England and the Massachusetts Institute of Technology (MIT) have agreed to collaborate on a twelve-month joint research project into central bank digital currencies (CBDCs).

Alongside MIT Media Lab’s Digital Currency Initiative (DCI), the bank will explore the potential technical challenges, trade-offs, and risks involved in designing a CBDC system. The project is intended to be for research purposes only and will not result in an operational...

Biden executive order on cryptocurrency to land this week

US Dollar

President Joe Biden is expected to sign an executive order on cryptocurrency this week that will mark a major step in the United States’ regulation of digital assets, according to Bloomberg.

The move comes amidst mounting concerns over Russia’s use of cryptocurrency to dodge the sanctions resulting from its invasion of Ukraine.

Treasury secretary Janet Yellen said: “We will continue to look at how the sanctions work and evaluate whether or not there are liquid...

India announces digital rupee rollout and 30% crypto tax

Taj Mahal, India

India is carving out its central bank digital currency (CBDC) plans with a digital rupee launch set for the coming financial year, as well as a 30% crypto tax.

In Tuesday’s speech on the upcoming year’s budget, Indian finance minister Nirmala Sitharaman confirmed the launch of a CBDC by 2023 to boost economic growth.

“Introduction of a central bank digital currency will give a big boost to the digital economy. Digital currency will also lead to a more efficient and...

Bank of America expects US CBDC launch between 2025 and 2030

US Dollar

The Bank of America (BoA), the US’ second largest bank after JPMorgan Chase, believes a central bank digital currency (CBDC) for the US dollar is “inevitable”, Bloomberg reports.

According to BoA digital asset strategists Alkesh Shah and Andrew Moss, CBDCs represent the next step in the advancement of electronic currencies.

The bank expects a digital US dollar to be rolled out between 2025 and 2030.

Plans for an American CBDC have been bubbling to the...

Macau expected to become testbed for China’s digital yuan

Macau, China

Macau, known as the Las Vegas of China, is likely to become a testing ground for China’s digital yuan (e-CNY) in 2022.

With casino owners preparing to bid for new licences for the first time in two decades, Reuters expects Chinese regulators to use the opportunity to force digital yuan implementation.

Major companies like Sands China and Wynn Macau have shown eagerness to cooperate.

The Government has already begun pitching ideas like appointing regulatory...

HSBC and Wells Fargo using blockchain to settle forex trades

HSBC HQ

HSBC and Wells Fargo, two of the world’s largest financial institutions, have started using blockchain technology to settle foreign currency trades.

The distributed ledger technology is being provided by Baton Systems with the aim of increasing settlement speed and efficiency.

Through Baton’s platform, the two banks are settling FX trades with real currencies and real accounts in less than three minutes.

It avoids passing the trades through CLS, a...