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UK Treasury Considers Digital Pound, Maintains Crypto Hub Objective

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UK Treasury Considers Digital Pound, Maintains Crypto Hub Objective

The U.K. is mulling over launching a digital pound as it remains committed to becoming a cryptocurrency hub, a government representative has indicated. British authorities should also regulate payments with stablecoins, according to the official.

United Kingdom Prepares to Begin Consultation on Digital Pound Currency

The executive power in London is considering the introduction a digital version of the national currency, Economic Secretary to the Treasury Andrew Griffith told lawmakers, the BBC reported. A public consultation on the attributes of a digital pound would be launched in the coming weeks, he said, speaking to the parliamentary Treasury Select Committee. Quoted by Reuters, he also emphasized:

The consultation is going to say this is an if and not a when. We are not fully into the inevitability of doing this.

A digital pound raises many public policy issues and the government has to “get them right,” Griffith stated. He addressed concerns that a state-backed coin could erode privacy, insisting that its design would not allow the authorities to track individual transactions beyond measures targeting crime like money laundering.

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Griffith further elaborated that the first use case for a central bank digital currency (CBDC) issued by the Bank of England would likely be in wholesale settlements but admitted that a privately issued, fiat-backed stablecoin “would probably get there first.”

“I want to see us establish a regime, and this is within the FSMB, for the wholesale use for payment purposes of stablecoins,” the minister added referring to the Financial Services and Markets Bill, which is currently being debated in the British Parliament.

UK May Adopt Broader Crypto Regulations Than the EU

Andrew Griffith also revealed that another consultation will be initiated on the U.K.’s regulatory approach toward crypto assets in general. While the EU has already agreed on a set of comprehensive rules for the market expected to come into force in 2024, the minister pointed out that the U.K. regulations could be even broader and include decentralized finance.

“We want the right regime, operated in the right way, that has the right balances in it,” he told the members of the committee while vowing to hold multiple roundtables with industry participants as part of the discussions.

Andrew Griffith’s statements come after last year’s slump in the valuations of major cryptocurrencies like bitcoin and the following the collapse of large market players such as crypto exchange FTX. Amid an ongoing crypto winter, consumer protection in the space has come under scrutiny, the reports noted.

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CBDC, Crypto, crypto regulations, Cryptocurrencies, Cryptocurrency, Digital Currency, digital pound, Government, minister, Regulations, rules, secretary, Stablecoins, Treasury, U.K., uk

Do you expect the U.K. to develop and issue a digital pound? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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China gives away digital Yuan (e-CNY) worth million to boost adoption

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China gives away digital Yuan (e-CNY) worth million to boost adoption

  • Chinese cities have launched digital yuan (e-CNY) activities worth over $26.6 million (180 million yuan) to promote its adoption.
  • During the Spring Festival, nearly 200 digital yuan activities were launched across China, totaling more than $26.6 million (180 million yuan).

According to a recent Global Times report, Chinese cities have launched digital yuan (e-CNY) activities worth over $26.6 million (180 million yuan) to promote its adoption during the Spring Festival holidays, including subsidies, consumption coupons, and other programs.

In recent months, China has been rapidly developing the digital yuan. Many local governments distributed coupons in the form of digital yuan to boost its adoption during the first Spring Festival holidays after China optimized its COVID-19 prevention measures.

During the Spring Festival, nearly 200 digital yuan activities were launched across China, totaling more than $26.6 million (180 million yuan).

Jinan in East China’s Shandong Province and Lianyungang in East China’s Jiangsu Province issued digital yuan coupons during the season.

A few local governments used digital yuan to subsidize businesses to help them recover. Shenzhen in South China’s Guangdong Province gave out $14.7 million (100 million yuan) in digital yuan to the catering industry.

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Previously, Hangzhou issued each resident a $12 (80 yuan) e-CNY voucher last month, with the total giveaway costing the city around $590,000 (4 million yuan).

Commercial institutions also took part in digital yuan consumption promotions, with their operations being more diverse, encompassing mobile communications, supermarkets, transportation, tourism, and other industries.

Chinese consumers are becoming increasingly interested in digital currency. Data from the China-based e-commerce platform Meituan revealed that people adopted e-CNY distributed by the government of Hangzhou in East China’s Zhejiang Province within 9 seconds.

China rigorously implementing its CBDC plan

Other targets and features to increase CBDC usage have also been implemented by the Chinese government in recent months.

Last week, senior ruling party officials in Suzhou city set a tentative key performance indicator of $300 billion (2 trillion yuan) in e-CNY transactions in the city by the end of 2023.

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The target is ambitious considering cumulative e-CNY transactions had crossed $14 billion (100 billion yuan) in October 2022, two years after the CBDC’s launch.

In December 2022, Xie Ping, a former Chinese central banker, expressed disappointment that China’s digital yuan is not being used.

Ping mentioned that two years after the launch, cumulative digital yuan transactions had only reached $14 billion (100 billion yuan) in October 2022. “The results are not ideal,” he said, adding that “usage has been low, highly inactive.”

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot’s writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S – There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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Analysts

Banks In Russia To Lose $700 Million A Year Due To Digital Ruble, Experts Say

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Banks In Russia To Lose $700 Million A Year Due To Digital Ruble, Experts Say

Russian banks may be the main losers from the introduction of a digital ruble while retailers will save on acquiring fees, analysts have predicted. The benefits for consumers using the new digital currency are not that obvious as they may not be paid any interest or cashback.

Launch of Russia’s Digital Ruble Said to Result in Losses for Banking Institutions

Commercial banks may lose up to 50 billion rubles annually (almost $715 million) when a digital version of the ruble is introduced, according to a forecast produced by financial experts at Yakov and Partners, the former Russian division of management consultancy McKinsey.

Meanwhile, retail chains could potentially increase their income by up to 80 billion rubles each year, believe the authors of the research, quoted by the Russian edition of Forbes. At the same time, consumers may receive no interest on their balances or cashback for their transactions.

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The specialists see the digital ruble occupying a niche in the domestic retail payments market, taking over part of the share of card payments. Banks’ losses will be mostly due to shrinking revenues from the commission they get for processing such payments. Retailers will profit from saving on the acquiring fees and from instant payments that faster than card transfers.

The benefits for consumers are not guaranteed as the concept of the Russian central bank digital currency (CBDC), an electronic cash, does not envisage the accrual of interest on the holdings, unlike bank deposits. They will also likely lose the cashback that banks currently pay for operations with their cards, the report notes and elaborates:

The digital ruble has no obvious advantages in terms of convenience in everyday use, and international experience shows that the reduction in the cost of acquiring does not lead to price reductions or slowdown in price growth, only to an increase in retailers’ profits.

The digital ruble, issued by the Bank of Russia, is supposed to become the third form of the Russian national fiat, after cash and electronic money. It is meant to be used as a means of payment and a store of value but it is not aimed at replacing deposits or bank payments.

The project was first announced in October 2020 and a prototype was finalized in December, the following year. The pilot phase started in January of 2022, with the monetary authority planning to begin trials with real transactions and users in April 2023 and aiming for full launch in 2024. A bill on the digital ruble was submitted to the Russian parliament this past January.

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Analysts, Bank of Russia, banks, Benefits, CBDC, Customers, Digital Currency, digital ruble, experts, Losses, pilot, profits, project, report, Research, Retailers, Russia, russian, study, trials

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Do you agree with the study that Russian banks will face losses as a result of the implementation of the digital ruble? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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JPMorgan CEO Says BTC Is Fraudulent, A ‘Pet Rock;’ Bank Of America Says CBDCs Are ‘Natural Evolution’ — Bitcoin.com News Week In Review

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JPMorgan CEO Says BTC Is Fraudulent, A ‘Pet Rock;’ Bank Of America Says CBDCs Are ‘Natural Evolution’ — Bitcoin.com News Week In Review

JPMorgan CEO Jamie Dimon has reiterated his supposed skepticism of bitcoin, recently calling it a “hyped-up fraud,” and a “pet rock.” For it’s part, Bank of America has said that it views central bank digital currencies (CBDCs) and stablecoins as a “natural evolution of today’s monetary and payment systems.” This and more on inflation and the U.S. Federal Reserve’s next moves, just below.

JPMorgan CEO Jamie Dimon Calls Bitcoin ‘Hyped-up Fraud’ — Expects Satoshi Nakamoto to Increase BTC Supply Cap

JPMorgan Chase CEO Jamie Dimon calls bitcoin “a hyped-up fraud.” The executive questioned the cryptocurrency’s supply cap, expecting a picture of bitcoin’s pseudonymous creator Satoshi Nakamoto to pop up and laugh at us all when bitcoin’s supply hits 21 million coins.

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Morgan Stanley CEO Says Inflation Has Peaked and China Has Made a Major Pivot

Morgan Stanley CEO James Gorman says two changes have happened recently that “really matter” to the economy. The executive explained that inflation has clearly peaked and China has made a “major, major pivot” economically.

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Bank of America: ‘Digital Currencies Appear Inevitable’

Bank of America says “digital currencies appear inevitable,” adding that central bank digital currencies (CBDCs) and stablecoins are “a natural evolution of today’s monetary and payment systems.” The bank expects “private sector beneficiaries to emerge in all phases of CBDC implementation.”

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All Eyes on the Next Fed Meeting: Market Trajectories Hinge on Decision

Equities, precious metals, and cryptocurrencies have been on a tear during the last few weeks of 2023, and all eyes are now focused on the next Federal Open Market Committee (FOMC) meeting. Federal Reserve governor Christopher Waller recently said that he favors a quarter-point benchmark rate increase at the next FOMC meeting. Analysts believe that current market trajectories will be dependent on the outcome of the next Fed meeting.

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What are your thoughts on this week’s stories? Let us know in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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