Banking and CBDC Weekly Roundup: 14/10/2024
More than 180 million digital yuan wallets have now been created — but over in the UK, campaigners fear "Britcoin" could plunge privacy and freedom of expression into peril.
For all the key details of new Distributed Ledger Technology (DLT) projects in the banking world, real-world asset (RWA) tokenization, stablecoins, and central bank digital currency (CBDC) updates, the Observers 'Banking and CBDC Roundup' weekly has you covered.
CBDC Updates
Alarm Raised over Digital Pound
A British civil liberties group has warned the digital pound poses "an extensive catalog of risks."
Big Brother Watch told Forbes that "Britcoin" could endanger privacy, equality and potentially freedom of expression.
It's calling for the government and the Bank of England to explain why this CBDC is necessary — and set out safeguards against abuse.
Campaigners are concerned that transaction data could be misused, as proposals for a fully anonymous digital pound have been ruled out.
China Issues Bullish Update
Meanwhile, it's been revealed that 180 million personal wallets have been opened on the digital renminbi app.
With trials now taking place across 17 Chinese provinces, that means about one in eight consumers are now interacting with this CBDC.
Mu Changchun from the People's Bank of China says that, as of the end of July, total transactions have now exceeded $1 billion.
He added that a flurry of use cases have emerged, spanning "wholesale and retail, catering and entertainment, education and medical care, social governance, public services, rural revitalization and green finance."
Eswatini Releases CBDC Design Paper
Another country is joining the race to release a CBDC.
Officials in Eswatini believe a digital lilangeni could help digitize the economy, deepen financial inclusion, and allow consumers to securely access funds issued by the central bank.
A new report notes that cash remains the most preferred payment method in the African nation, but there have been "remarkable milestones" related to the uptake of mobile money and bank cards.
Tokenization Updates
Taurus Partners With Chainlink
Swiss based tokenization service provider Taurus will leverage the Chainlink technology including integrating Chainlink oracle data feeds for providing real world data on-chain, Chainlink's proof-of-reserve, and Chainlink's Cross-Chain Interoperability Protocol (CCIP).
Mastercard Exec Calls for Security Rethink
Mastercard's chief product officer Jorn Lambert has called for root-and-branch reform to security in the financial sector — and argues that tokenization could be the answer.
He told PYMNTS TV that the fact sensitive credentials are stored on mobile devices and centralized servers is a cause for concern.
"You have to assume that the bad actors and the hackers will get their hands on that data, no matter how tall and thick the firewalls you build."
Lambert says too few executives in the space fully understand tokenization's potential — and he went on to hint that the payment processing giant will be rolling out this technology to more new markets in the coming months.
Ripple Custody Launches New Features
In other developments, Ripple's announced that it is now offering bank-grade custody technology to FinTech firms and crypto businesses.
The company says Ripple Custody allows businesses in the sector to secure, transfer and settle tokenized assets.
New features include the option to use hardware security modules, the integration of XRPL tokens, transaction monitoring with Elliptic, and an enhanced user interface. Ripple's senior vice president of product, Aaron Slettehaugh, said:
"Ripple's custody technology offers a single platform for safeguarding and managing digital assets, designed with the security and compliance standards that top global banks and financial institutions have come to rely on."
Midas Expands Access to Tokenized Products
Finally this week, Midas has secured regulatory approval to offer tokenized U.S. Treasuries in Liechtenstein.
This is significant because of how it will allow these products to be traded across Europe.
The tokenized RWA issuer says it's focused on regulatory compliance, all while removing minimum investment thresholds and in-depth accreditation processes.
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