Europe
Agent-based models shed light on CBDC dynamics
Take-up could be as high as 25% of total money, but depends on design choices, IMF research finds
Regulating fintech is biggest tech challenge, central banks say
Benefits include financial inclusion, cost reduction and service efficiency
Central banks split on machine learning, AI technologies
Respondents optimise features despite drags in data quality, skills gap and algorithmic challenges
Location, security and privacy are top cloud concerns
Richer economies more likely to domesticate and operate hybrid servers
Marks (and sizes and colours) of distinction
Many central banks make an effort to make cash accessible to blind and partially sighted users
Cloud used for business continuity and advancing computation
Most institutions rely on third parties for services
IMF allows five regional banks to hold SDRs
Development banks in Europe and the Americas are now “prescribed holders”
Retail CBDC work more common than wholesale
Most jurisdictions still lack a legal mandate to issue a CBDC
Central banks are bullish on environmental features of CBDC
A minority of respondents’ jurisdictions prohibit crypto assets
Improving payments efficiency drives wholesale CBDC work
Advanced economy institutions lead efforts
Stability under the 2% inflation standard is a chimera
An inflexible standard of value that lets the market decide how much money to produce would be superior, write Brendan Brown and Robert Pringle
Richer nations more likely to have regtech strategy
Regtech tools commonly used for risk assessment
Innovation hubs more common in advanced economies
Sandboxes remain most popular fintech initiative
Two in five central banks report having a suptech strategy
Enhancing efficiency is a key driver
EME central banks more likely to license fintech firms
Most institutions choose activity-based approach over other licensing methods
Payment innovation is top priority for fintech research
CBDCs and suptech are also leading focus areas for development
Half of central bank respondents have a fintech strategy
Most strategies cover the external payments ecosystem and internal fintech development
Inflation in Baltics set to remain highest in euro area
Charts highlight divergence between eurozone members
Spain’s De Cos calls for greater ambition in EU fiscal reforms
Redesign of fiscal rules must be supported by wider reform of financial governance, governor says
People: New York Fed appoints new Soma manager
Fed names new FOMC secretary; ECB IT head is leaving; new COO at Irish central bank
ECB flags ‘persistent concerns’ over bank governance
Supervisors perform first assessment of “excessive leverage” and demand action from four banks
IMF says global economy may be at ‘turning point’
China and India expected to drive half of global growth this year, but other economies are lagging
Wanted: radical ideas for inflation modelling
Hedge funds echo Mervyn King’s calls for a new approach to inflation modelling post-2022 crisis
Stefan Ingves on leadership, prudential oversight and transparency
The Riksbank and Basel Committee veteran speaks about his leadership philosophy, Basel III deal-making and concerns about regulatory rollback, the value of QE and negative rates, and the need for a legal architecture for CBDCs