Regulation
Central banks divided over stablecoin impact on US debt demand
Respondents offer different views on adoption paths and market dynamics
BPI says SR 11-7 should go; bank model risk chiefs say ‘no’
Lobby group wants US guidance repealed; practitioners want consistent model supervision and audit
Financial stability seen as top risk from private digital money
Concerns differ somewhat by region
Majority of CBDCs designed to be domestic only
But a fifth of central banks are working on multi-currency CBDCs
Brazil’s central bank shuts down lender connected to Banco Master
BCB says bank had “compromised economic and financial situation”
Central banks report 28 operational bitcoin ATMs on average
Jurisdictions with larger institutions have the most machines
CBDCs politicised in one in five jurisdictions
Public and private sectors mostly concerned about privacy of digital currencies
Fintech licences issued yearly remain below 10 on average
Number of fintechs in operation averages just over 60
Central banks keep trialling link between wCBDC and RTGS
Most respondents motivated to issue wCBDC to enable financial innovation
Repeat of past mistakes fuels risk of new crisis
Jesper Berg and Hans Geeroms argue that bank lobbying has succeeded in securing a dangerous softening of rules
Majority of central banks still lack CBDC issuance powers
Legal mandates are scarce in both larger and smaller central banks
Two in five CBDCs designed to be programmable
Over half of respondents’ retail CBDC projects are at research phase
Study calls for twin-pronged macro-pru approach to shocks
Higher capital and CCyB are both needed to mitigate threats to stability, say Bank of Italy authors
Brunei to focus on Islamic and sustainable finance
Central bank says it has no plans to introduce a CBDC or stablecoin regulations
China says tokenisation illegal under existing framework
PBoC and agencies update 2021 crypto guidelines to place restrictions on real world assets
EU banks need more control over their data – DNB board member
Chair of supervision says tech, finance and public sector need to work together to reduce dependencies
UK clearing houses face tougher capital regime than EU peers
Ice resists BoE plan to move second skin in the game higher up capital stack, but members approve
Taiwan rejects accusation of ‘backdoor currency manipulation’
Central bank says it ‘cannot and will not’ have upper limit for New Taiwan dollar
ECB seeks capital clarity on Spire repacks
Dealers split between counterparty credit risk and market risk frameworks for repack RWAs
Fed fractures post-SVB consensus on emergency liquidity
New supervisory principles support FHLB funding over discount window preparedness
ECB tweaks collateral framework, ‘paves way’ for DLT-based assets
Bank clarifies ‘climate factor’ in securities pricing, introduces haircuts on sterling, dollar and yen assets