Tech

Bogota and Blockchains

“With an investment of $ 2,800 million, this project will strengthen 100 companies. Those who participate in this program will receive advice to implement this technology within their company. Likewise, they can be part of the Blockchain academy where they will strengthen their knowledge and soft skills.” Bogota

Startup Money

Bogota offers 2.3 million USD for startups. There is a blockchain Hub option.

Cointelegraph reported this.

 

 

 

Tajikistan and CBDCs

“Digitization of the national economy, support for business, attraction of national capital to economic sectors, adoption of a new tax code in a new edition with the participation of the private sector, cancellation of the taxes for the farmers, strengthening the role of women in society, increasing attention to youth generation among the projects intended for the following year.” President

Fantom & e-Government

The big news for Tajikistan is that Fantom agreed to provide blockchain services to create an e-Government with a view to CBDCs.

The President addressed this matter and clearly digitization is a top priority.

Tajikistan has a large income from remittances and the benefits of CBDCs would be keenly felt as already described for Somalia and others.

The currency is pegged to the Russian Ruble. 

 

BIS and CBDC – June 2021

Broadening Narrow Money

The paper considers monetary policy around CBDCs. 

… we consider a CBDC that is universally accessible, interest bearing, and freely convertible to other forms of central bank money and to commercial bank deposits.

One conclusion the paper draws is that policy interest rates would be felt in the real economy quicker because users directly interact with the central bank.

The paper also considers the well voiced issue about disintermediation. Also under a direct relationship the document considers that QE would be weakened.

 

“More practical design choices relate to the technology used to power a CBDC, in particular whether a CBDC should use distributed ledger technology … the technology is still considered to be too immature to power a critical national payment system”

 

Stablecoins & CBDCs

Monetary Policy & Stablecoins

Director Mu made it clear in his statement that banning cryptocurrency was critical to protect Chinese Monetary Policy.

Central banks control monetary policy by controlling what currency is created and how central bank lending is done.

Stablecoins pose a real and genuine threat to that independence.

Stablecoins are private coins and they are not controlled by central banks. But the value of these coins is pegged to fiat money. 

This means actual currency supply is no longer controlled by the central banks. This loss of control has fuelled the race to bring into finance the CBDC.

 

 

 

 

“We live in an increasingly digitalised world where the way we make payments and use money is changing rapidly. The prospect of stablecoins as a means of payment and the emerging propositions of CBDC have generated a host of issues that central banks, governments, and society as a whole, need to carefully consider and address.”  Governor BoE   

 

Satoshi Nakamoto & CBDCs

“the private sector nature of stablecoins raises risks to monetary policy transmission and may threaten the effectiveness of the central bank’s lender of last resort function.BIS

Bitcoin and Impact

In 2008, an email appeared in a mailing list entitled – Bitcoin P2P e-cash Paper – it was the now famous bitcoin whitepaper. 

Although bitcoin could never have worked it’s invention did have one consequence – to change the entire world’s financial system.

This change was not via cryptocurrency or bitcoin, but enabling stablecoins – coins based on blockchains which are pegged to fiat values. 

Stablecoins directly threatened central banks and prompted them to move into action. The action was to invent a new term – CBDC – which proprogated globally reaching every central bank.

Today in 2021, the entire world system is on the brink of a change not seen since the 1600s in terms of scale. 

It seems clear that the actual design of bitcoin was to cause CBDCs (not by name but by design) and with it a complete digitization of currency; and complete globalization of financial services at a level never seen before – low-cost, instant, and universally accessible.

Satoshi Nakamoto was never identified and it is likely the name referred to a team in a government agency whose purpose was to cause CBDCs. Bitcoin.com speculates it could have been the NSA. 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bitt and CBDCs

“In 2019, the Eastern Caribbean Central Bank (ECCB) and the Barbados-based fintech company, Bitt Inc., signed a contract to conduct a blockchain-issued central bank digital currency (CBDC) pilot within the Eastern Caribbean Currency Union (ECCU).” Bitt

CBDC Specialists

Bitt specialises in payment systems with a focus on CBDCs.

They were closely involved in the evolution of DCash implemented via the ECCB. 

Bitt advocates the implementation of blockchain and DLTs. Marla Dukharan is the chief economist at Bitt who is also involved in the Caribean Settlement Network

The ECCB launched a pilot called DXCD reported by the BIS; Bitt was also involved in that pilot – a forerunner to DCash. 

Bitt has over 80 employees listed at Linkedin. 

 

 

 

 

Solana Investment

“The next phase is onboarding a billion users. Solana was built from the ground up to accommodate this scale. With this funding, Solana Labs is now positioned to bring in the right partners and capital to build products and tooling to get there.” Anatoly Yakovenko, Solana Labs Co-Founder and CEO.

Solana Investment

Solana has secured 314 million dollars of investment.

This was led by the established investment firm Andreessen Horowitz which has invested heavily in  crypto ventures, via a current team of more than 20 investment specialists. 

Solana aims to reach a billion users to take crypto into a new age of scalability.

Solana uses a Proof of History. This enables a more efficient network and hence TPS rates are higher than mainstream competitors.

Solana does offer grants to help startups build applications using Rust smart contracts. 

Solana also has announced an IDO exchange based on Solana for IDOs. 

 

 

DBS & an STO

DBS – first STO on DDEx

The Development Bank of Singapore (DBS) had issued its first STO. This was done via its exchange called DDEx.

The DBS has revenues of 14.5 billion SGD (10.8 billion USD) and the DBS believes tokenization will enter the mainstream for securities.

DDEx launched in late 2020, and today holds 85 million SGD in digital assets (custody service).

CEO Piyush Gupta was cautious on crypto asset trade saying the bank would test the markets and “figure it out.”

 

 


“Our maiden STO listing on the DBS Digital Exchange is a significant milestone, as it highlights the strength of our digital asset ecosystem in facilitating new ways of unlocking value for issuers and investors.” Eng-Kwok Seat Moey, DBS 

 

Security Tokens & Addx

“Security tokens represent the next generation of electronic trading. They are stocks, bonds, funds, and other securities taking the form of tokens on a blockchain rather than physical certificates or some other form. Using blockchain technology as the foundation on which securities are built, managed, and traded yields important efficiencies, such as fractionalisation and reduced settlement times – from the market norm of two working days to instant.” The Payers

Addx

Security tokens are tokens which provide ownership and voting rights over a security. These tokens are different to the original utility tokens which allowed for a service to be used (eg travel, or viewing videos). 

Addx is a platform tokenizing bonds, securities, and hedge funds. It rebranded from iSTOX.

Addx has an app entitled “Your Entry to Private Markets Investment” on the Play Store with 100+ downloads; with 5 stars. 

The security token market has long been forecast with numerous predictions about tokenizing real-estate and many more assets to create liquidity in illiquid assets.

So far, security tokenization is still very small compared to the quadrillion dollar size of the securities market.

The Addx website shows logos from Bloomberg, CNBC and the WSJ.

 

 

MAS and Hyperledger

Sopnendu  Mohanty

As part of the keynote panel, Sopnendu expressed his enthusiasm about Hyperledger Fabric which supplemented the discussion about Hyperledger Iroha. He talked about the earlier success with PayNow and PromptPay; and the prospect of a common ledger for several central bank digital currencies (m-cbdc); he also talked about a hackathon to be sponsored by MAS for finding solutions for interoperability using Hyperledger.

He said blockchains were a good solution for problems related to central bank digital currencies.

Hyperledger global forum