CBDCs | Crypto

For years, stablecoins have been crypto’s most useful invention and its most awkward dinner guest. Useful because they turn blockchains into 24/7 dollar rails, and awkward because while the promise is simple, securing trust rarely is. A digital token worth exactly a dollar sounds reassuring to non-crypto folk right up until someone asks where the […] The post One US location just banned CBDCs, but its new state token is doing something even more surprising appeared first on CryptoSlate.

India is urging other countries to develop CBDCs, and China is expanding the use of its digital yuan, allowing banks to offer interest on e-CNY wallets. Russia’s Ministry of Justice has proposed new fines for unregistered cryptocurrency miners. This comes after the finance minister raised concerns about the rise in unauthorized mining activities. A draft bill proposed by the ministry would impose a fine of 1.5 million rubles (about $19,000) and up to two years in a labor colony. Illegal mining involving “outsized profits” could see a maximum of five years in prison, 480 hours of forced labor and a fine of up to 2.5 million rubles. Unregistered miners are a growing problem in Russia, where only 30% have registered their operations as of June 19, according to Deputy Minister of Finance Ivan Chebeskov. Read more

Only three CBDCs have been successfully launched around the world so far, in Nigeria, the Bahamas and Jamaica, although many jurisdictions are considering it. The Reserve Bank of India has urged countries to focus on central bank digital currencies over privately-issued stablecoins, citing concerns about financial stability. In its December financial stability report, released on Wednesday, the RBI argued that CBDCs preserve the “singleness of money and the integrity of the financial system,” and should remain as the “ultimate settlement asset” and the “anchor for trust in money.” “The RBI, therefore, strongly advocates that countries should prioritise central bank digital currencies over privately issued stablecoins to maintain trust in money, preserve financial stability and design next generation payments infrastructure that is faster, cheaper and secure.” Read more

CBDCs threaten more central bank control over money, including potential expiry dates on personal savings, Bitcoin Policy UK’s CEO said. Global central bank digital currency (CBDC) efforts are threatening to give financial institutions more control over the money supply and personal savings, as the transatlantic divide between the US and Europe widens in terms of financial technology. CBDCs are digital versions of fiat money issued on a permissioned, private blockchain, usually controlled by a central bank, as opposed to decentralized blockchain networks. “Not all digital currencies are the same,” said Susie Violet Ward, financial analyst, co-founder and CEO of think tank Bitcoin Policy UK, warning that CBDCs represent the “weaponization of money in its purest form.” Read more

Michigan lawmakers introduced four crypto bills in one day, covering crypto in state retiree funds, CBDCs and Bitcoin miners operating at abandoned oil and gas sites. Michigan lawmakers have introduced four crypto-related bills covering crypto mining, central bank digital currencies (CBDCs) and crypto in state retirement funds. Republican state Representative Bill Schuette introduced House Bill 4510 on May 21, which would amend Michigan’s Public Employee Retirement System Investment Act to allow the state treasurer, currently Rachael Eubanks, to invest in cryptocurrencies that have averaged a market cap above $250 million over the last calendar year. Bitcoin (BTC) and Ether (ETH) are the only cryptocurrencies that currently meet that threshold. The bill adds that any cryptocurrencies must be held in the form of an exchange-traded product issued by a registered investment company. Read more