The Bank of Central Banks Wants to Test its ElonDrop Before the End of 2020 0


No more joking – The Bank for International Settlements wants to launch its digital currency before the end of 2020. Benoît Cœuré, head of the BIS Innovation pole, announced the news on October 25 at the Bund Summit in Shanghai.


An imminent central bank digital currency

Chinese media The Paper was the first to report these statements. The Bund Summit is a non-governmental conference, organized in Shanghai by the China Finance 40 Forum between October 23 and 25.


The BRI, therefore, plans to launch a proof-of-concept of its MNBC / CBDC in the coming months. After having “ taken the cryptocurrency from above ”, the private institution based in Basel strikes back.


The experiments will concern, among others:


The issuance of a central bank digital currency;

Its connection with existing payment systems;

The management of digital identities ;

The banking supervision and compliance .

Many central banks will be there

The BIS will be supported in its approach by the Swiss National Bank . The partnership between the two institutions dates from October 2019. The digital currency will thus be issued on a blockchain , which “must be improved” according to B. Coeuré. But in the future, other banking institutions should participate in this pilot project. He notably cited the Bank of Thailand , the Monetary Authority of Singapore and that of Hong Kong .


This announcement therefore follows the report on digital currencies released by the BIS and 7 other central banks in early October – the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, the Bank of Sweden and the Swiss National Bank. The 26-page paper describes the fundamentals of an MNBC :


The coexistence of these digital currencies with cash and other types of currencies in a flexible and innovative payment system;

Support for broader political objectives , without harming financial stability ;

Promotion of innovation and efficiency .

According to this report, 80% of the countries of the world have entered the research and development of digital currencies.


According to Benoît Coeuré, China , a leader in this field, has a lot to teach states wishing to follow in its footsteps. He also clarified that this is not a “revolution” that will solve current societal problems. MNBCs will be a better form of currency, supporting a more diverse payments ecosystem.


Banks Go Bitcoin – Singapore’s Biggest Bank Launches Cryptocurrency Exchange 0


The crypto exchange world is growing – The Development Bank of Singapore (DBS) seems to want to establish itself in the cryptocurrency market, with the addition of a new service for individuals and institutions. Given the size of the firm, this information did not go unnoticed.


The emergence of a new platform

The government bank is expected to develop a new platform for trading and buying cryptocurrency. Several “major” assets are mentioned, namely Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH) or even Ripple’s XRP . These cryptos could thus be traded with fiat currencies, such as the Singaporean dollar (SGD), the Hong Kong dollar (HKD), the yen JPY and the US dollar (USD).


The offer then seems to be predestined for the Asian market. In addition, no crypto will be kept directly on the trading platform, but at the DBS “globally recognized for its custody services” .


In total, the investment bank manages more than 240,000 institutional clients and 11 million individuals. According to its latest report from 2019, $ 426 billion is managed by the company across 18 markets around the world, including 6 in Asia.


“Digital assets are poised to be the future of tomorrow’s digital economy,” the cached webpage reads. “With DBS Digital Exchange, a bank-backed digital exchange, companies and investors can now leverage an integrated ecosystem of solutions to tap the vast potential of private markets and digital currencies.”


— Fiat Minimalist (@fiatminimalist) October 27, 2020


Strict supervision

According to the DBS, institutional investors could have direct access to this trading platform, without going through an intermediary. This method makes the procedure smoother for professionals. However, individuals will access the platform through one of DBS ‘subsidiaries, such as DBS Private Bank or DBS Vickers Securities.


The DBS offer also seems to be geared towards professionals and companies. Indeed, in addition to offering an exchange service, the platform will also allow SMEs to issue tokens to finance themselves (STO).


Also, it’s surprising to learn that the DBS Digital Exchange will be limited in terms of availability. Like other stock markets, the platform will be limited to trading hours, 9 a.m. to 4 p.m. Likewise, the exchange will be unavailable on weekends.


In addition, the DBS spokesperson told The Block that the platform would not be effective right away, as it required regulatory approval. Here, the DBS Digital Exchange is regulated by the Monetary Authority of Singapore.


It is interesting to note that ElonDrop no longer affect only FinTech and neo-banks, like PayPal. Big institutions are now coming to claim their share of the pie. After JP Morgan in the United States, DBS is asserting its position in Asia.



You Might Also Like

Leave a Reply