Digital Euro Association Blog

Novi is the new Facebook Pay

Nov 19, 2021 11:32:07 AM / by Enrique Titos posted in Diem, Digital Money, CBDC, Stablecoin, Novi, Facebook Pay

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I started writing about the disruption that blockchain and crypto assets would bring when Facebook first announced the intention to launch Libra in 2019 with a consortium of 28 companies to develop its distribution ecosystem. A lot has happened since then and at no point has Facebook given up on its ambitions in redefining the payments landscape.

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CBDC pioneers: Which countries are currently testing a retail central bank digital currency?

Jul 16, 2020 5:55:36 PM / by Jonas Weisbrodt, Jonas Gross posted in CBDC

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Medium

Central bank digital currencies (CBDC) are currently a hot topic. A study by the Bank for International Settlements (BIS) from January 2020 shows that 80% of worldwide central banks are engaged in CBDC-related research (Boar et al. 2020, p. 3). The percentage of central banks that run experiments or proofs-of-concept is also growing, reaching almost 50%. 10% of the surveyed central banks plan to introduce a generally available (retail) CBDC in the next three years and 20% in the next six years (ibid., p. 7). Therefore, CBDC efforts are very dynamic and are expected to even increase in momentum within the next few years.

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How Will Blockchain Technology Transform the Current Monetary System?

Jul 2, 2020 12:41:28 PM / by Manuel Klein, Jonas Groß, Philipp Sandner posted in CBDC, Programmable euro

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Medium

Why should the payment systems we use and the money that is transferred via these systems itself make use of distributed ledger technology (DLT), namely Blockchain technology, the underlying technology of cryptocurrencies such as Bitcoin? This article gives a brief explanation of the structure of the current money and payment system and the functioning of blockchain technology with Bitcoin as an example. It further elaborates the advantages of DLT and its difference to the current design of the monetary system. The last chapter summarizes the different ways of how DLT can be used in our current money and payment system.

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China’s digital currency project: What is DC/EP all about?

Jul 2, 2020 12:38:50 PM / by Alexander Bechtel, Jonas Groß posted in CBDC

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Medium

Central bank digital currencies (CBDC) are becoming reality. On 16 April 2020, the Chinese central bank has started the test phase of its CBDC, called Digital Currency / Electronic Payment (DC/EP). It is currently tested in four Chinese cities: Shenzhen, Suzhou, Chengdu, and Xiong’an. China might be the first industrial economy worldwide to introduce a CBDC. This article outlines the current status of the DC/EP project and its economic and social implications.

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A digital currency against climate change: The way of the Marshall Islands

Jul 2, 2020 12:34:35 PM / by Jonas Gross posted in CBDC

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Medium

Central bank digital currencies (CBDC) are on the rise. More and more CBDC projects are now reaching the test stage and are approaching the actual issuance of the digital currency. In addition to China, this also includes the Pacific island nation of the Marshall Islands. But what distinguishes this project from other CBDC initiatives? With the help of an own CBDC, the Marshall Islands aims to combat the consequences of climate change.

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The Digital Euro and the Role of DLT for Central Bank Digital Currencies

Jul 2, 2020 12:28:02 PM / by Manuel Klein, Jonas Groß, Philipp Sandner posted in CBDC, Programmable euro

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Medium

Digitization has reached the monetary system. The advent of crypto assets, such as Bitcoin and Ether, revealed numerous advantages these digital assets based on distributed ledger technologies (DLTs) can bring: Using DLT can enhance the security of sensitive financial transaction data, increase
transaction speed through faster processing and settlement and automate numerous business processes through smart contracts. These advantages ought to be realized in the conventional monetary system as well — not only in the “crypto industry”. DLT can be used both to digitally represent bank deposits and to tokenize central bank money via central bank digital currencies (CBDCs). Current DLT-based CBDC projects and prototypes among others by the Chinese and Swedish central banks, but also initiatives by the European Central Bank (ECB), show that DLT will be an essential pillar ofthe digitization of the monetary system in particular and the financial system in general in the future.

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