Law Decoded: The rivalry between central banks and global stablecoins, Oct. 9–16
Talk of CBDCs and Facebook's Libra headlined this week's policy news, as international organizations weigh in on both. Editor’s noteBlockchain technology has attracted regulatory attention since its inception. The security of the Bitcoin network despite the value of BTC in play has consistently proved the resilience of blockchain technology in maintaining records across a vast range of parties. However, many countries have determined that Bitcoin doesn’t behave as a currency at all, or at least not a replacement for their own. The nations behind the world’s most-used fiat currencies have....
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Retail users may have to wait in much of the world, however. Editor's noteIt may be too late for resolutions and too early for Lent, but lacking any discrete occasion, I would still like to give up United States political news for a while, or at least for the duration of one Law Decoded. Fortunately, in the spirit of going international and leaving the bonkers election cycle of the U.S., blockchain technology and stablecoins are playing a major role in the latest developments in cross-border payments and settlements. It’s long been one of the most talked-about applications of blockchain....
Central banks are paying very close attention to stablecoins, seeking to control them — and decentralization may be the solution. Over the last couple of years, we have seen a lot of interest from central banks and governments in the stablecoin market. The reason behind it lies in the development of central bank digital currencies, or CBDCs.The idea of issuing a digital alternative to cash is a great motivator for central banks. It allows them to gain more control over the transition and processing of cashless transactions, which are currently overseen indirectly through private payment....
Stablecoins and CBDCs and their related issues of privacy and surveillance lead this week's Law Decoded. Editor’s noteAs many of you were certainly following in real time, a bull market gave way to a bloodbath yesterday, which happened to be Thanksgiving in the U.S. Personally, I’ve never thought that Bitcoin’s price was any sort of proof of its value proposition, but for many its retreat yesterday certainly dashed many a planned gloat to family members more receptive to massive gains than concepts like censorship resistance.But obviously volatility is part of the game with....
A fascinating debate about XRP and stablecoins like USDT has emerged between former Ripple CTO David Schwartz and members of the XRP community. During the exchange, questions were raised about whether banks would choose XRP despite Ripple’s concentrated token ownership—and whether the cryptocurrency still remains relevant in an era dominated by stablecoins. Schwartz responded with […]
According to the boss of the international institution owned by central banks, it is central banks that are best positioned to shape the future of money. In a speech entitled “Digital currencies and the soul of money,” Agustín Carstens, the general manager of the Bank of International Settlements, criticized private stablecoins and decentralized finance (DeFi), touting central bank-led financial innovation as the best possible path to the future of money.Carstens, who served as governor of the Bank of Mexico between 2010 and 2017, delivered his remarks at the conference on "Data,....