Bitcoin
Rethinking sovereign risk
‘Risk-free’ assets now include the possibility of complete confiscation with no recourse
How supervisors can step up the AML fight
Marcus Pleyer, president of the Financial Action Task Force, says digital tools, stronger co‑operation and risk-based methods can give supervisors an edge. But threats are still proliferating
Diego Labat on policy normalisation, capital flows and tech challenges
The Central Bank of Uruguay governor speaks with Christopher Jeffery and Ben Margulies about governance, financialisation, flexible rates versus capital controls, payment upgrades and CBDCs
FSB warns of rising crypto asset risks
Sector could harm global financial stability if it carries on growing at current rate, FSB says
Boston Fed-MIT team hails successful CBDC test
The project’s two open-source systems were able to process large transaction volumes
IMF warns El Salvador on crypto
Executive board recommends “removing bitcoin’s legal tender status”
Bitcoin’s carbon footprint rises with prices – DNB research
Total carbon emissions produced by crypto assets rose by 25% in 2020, study finds
Bolivian authorities implement crypto ban
Central bank will enforce 2020 measure banishing virtual assets from payments system
Book notes: Shades of sovereignty, by Paul Wilson
An essential and stimulating read for central bankers thinking about the monetary history of their state in relation to its historical perspective and broad international trends
Interoperability of stablecoins
Central bank reserves could be a better option for backing stablecoins than Treasuries, say Manmohan Singh, Caitlin Long and Charles Kahn
Crypto asset transactions hit ‘macro critical levels’ – IMF GFSR
Crypto valuations “already systemic” in “many countries”, international rules "probably some time away", says IMF’s Adrian
China outlaws all crypto transactions and bans mining
PBoC, cyber watchdog and central economic planner act in a joint crackdown on crypto
Bitcoin becomes legal tender in El Salvador
Observers warn move could further destabilise the fragile Salvadoran economy
Book notes: Fintech regulation in China, by Robin Hui Huang
The book includes meticulous exploration of detailed regulations across the Chinese fintech sector, but risks missing some of the bigger picture due to China’s on/off oversight
The six key drivers for digital currency
Dave Birch breaks down the forces that are pushing central banks towards CBDC
PBoC to support green finance with low-cost funding
Bank says it will extend its tougher regulation of crypto assets
Central banks leverage multimedia communication channels
Around a third have added podcasts, mobile apps and blogs to their comms repertoire
Mexico reminds banks crypto transactions are illegal
After El Salvador bitcoin law, authorities state virtual assets ‘not legal tender in Mexico’
PBoC tightens ban on crypto transactions
PBoC warns largest banks to verify customers’ identities and stop aiding bitcoin-related transactions
China abandons cryptocurrencies under the PBoC (this time it’s for real)
New data centres set to be established to compensate provinces for lost crypto mining revenues
El Salvador’s bitcoin currency experiment
Move by first nation to approve bitcoin as legal tender raises important issues
Central banks will need new tools if low rates persist – Rogoff
Governments must clamp down on crypto assets while central banks develop CBDCs, economist says
Basel Committee proposes strict treatment of crypto asset exposures
Crypto assets such as bitcoin will face risk weight of 1,250%
El Salvador to make bitcoin legal tender
President claims the move, a first for any country, will aid remittances and financial inclusion