Subject: eCurrency Newsletter - April 2020

Newsletter  |  April 2020
Your source for CBDC development updates

Dear Friends,
The impending arrival of CBDC is being anticipated. Eighty percent (80%) of central banks (up from 70%) are engaging in some sort of work, according to the sequel to the BIS survey on CBDC, including the 17 retail CBDC projects or reports mentioned in the March BIS Quarterly Review. For example, the  Bank of Canada is implementing an initiative to build, as a contingency, the capability to issue a cash-like CBDC to the public, should the need ever arise. 
 
Furthermore, the Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Sveriges Riksbank, Swiss National Bank and Bank for International Settlements have created a group to share experiences, asses use cases, design choices, share knowledge on technologies on CBDC. The appointment of the heads of the BIS Innovation Hub in Singapore and Switzerland in February will facilitate common approaches and accelerate tangible outputs. 
 
COVID-19 heightens the age-long concern of the hygiene risk of cash. 'There will be more outbreaks. That is not a maybe,’ said Alanna Shaikh, the global health consultant. A long term alternative to physical cash now looks even more appealing. As the most trusted institutions, central banks are well placed to issue digital currency, as stated in an OMFIF research report.

You will read the synthesis of the latest developments and eCurrency’s perspectives in this issue of eCurrency Newsletter. eCurrency wishes you and your family good health.

Miles Au Yeung
Chief Markets Officer

CBDC DESIGN AND TECHNOLOGY

Centralized issuance and control, decentralized distribution and payment
The papers published by The Bank of Canada, the Bank of England and the Bank for International Settlements in February and March calls for designs whereby central banks issue and control the supply of CBDC, and third parties provide payment and other value-added services to the end users. The CBDC platform could be built using more conventional centralized technology and the case for blockchain technology is not clear. Read More

Blockchain is the wrong technology choice for delivering CBDC
An analysis of the attributes of Blockchain technology and the set of requirements identified as necessary for a centrally controlled unit of account, store of value and means of payment; Central Bank Digital Currency (CBDC), concludes that a technology built for the purpose is better suited than on repurposed.  Read More

eCurrency DSC White Paper
Digital Secure Currency - How central banks can achieve a safe, non-counterfeitable Central Bank Digital Currency
The white paper examines eCurrency Digital Secure Currency (DSC) technology and the aspects under study by central banks for CBDC. Central banks are faced with providing a solution for inclusive growth, efficiency gains, and reduced concentration, technology, credit and settlement risks.  Three types of CBDC are being considered -  wholesale, retail and cross-border by a large number of central banks while differentiating between the suitable architecture and design.   Read More

DIALOGUE WITH MOVERS AND SHAPERS


In this episode of Dialogue with Movers and ShapersBarry Cooper, Technical Director of Centre for Financial Regulation and Inclusion (Cenfriand Jonathan Dharmapalan, Chief Executive Officer of eCurrency explore the immense opportunity of central bank digital currency (CBDC) beyond the immediate challenges with host, Lars Arvidsson, Chief Commercial Officer of eCurrency.
Read Highlights

COVID-19 OUTCOME
COVID-19 Provides Another Rationale for Central Bank Digital Currencies
Digital means of transacting is a prominent topic of discussion for central bank around the globe looking for a solution to the proliferation of privately issued and controlled digital monies, financial inclusion objectives and economic stability. During the global coronavirus crisis, there are additional benefits that are under consideration.  The handling of physical cash during this time has been of concern and also many countries are in the process of distributing relief funds to their citizens and this distribution would be made more efficient and secure with CBDC. Read More

GLOBAL FORUM
Tom Kudrycki, CTO of eCurrency, discussed the policy decisions, the minutiae of IT execution of CBDC implementations and key issues of planning the initial implementations of their CBDC at the World Banknote Summit (WBS) held Prague, April 2020. eCurrency expects the CBDC landscape to continue evolving at an accelerated pace and it will continue contributing its expertise and solutions to this exciting new form of cash.  Read More


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