The Supreme Court of India has this week listened to further hearings in the landmark case against the Reserve Bank of India’s ban on banks’ dealings with crypto-related businesses. On Jan. 22 and Jan. 23, proceedings continued with arguments presented by Ashim Sood, the legal counsel for the Internet & Mobile Association of India (IAMAI). In the wake of both public and industry-led petitions, the IAMAI brought a consolidated case against RBI’s imposition of a blanket ban on banks’ services to crypto businesses back in April 2018, which came into effect in July of that year. This week, Sood appeared …

A new survey from the Bank of International Settlements (BIS) revealed that only 10% of central banks are likely to issue a central bank digital currency (CBDC) for the general public in the short term. According to a report the BIS shared with Cointelegraph on Jan. 23, the bank surveyed 66 central banks from around the world to investigate their eagerness to develop and issue a CBDC. Out of them, respondents represented 21 advanced economies and 45 emerging market economies (EMEs), thus covering 75% of the world’s population and 90% of its economic output. EMEs vs. advanced economies results The …

The World Economic Forum (WEF) — together with some of the world's major central banks — has created a central bank digital currency (CBDC) policymaker toolkit. According to an announcement on Jan. 22, the toolkit is the WEF's attempt to help policy-makers understand whether deploying a CBDC would be advantageous and guide them through its design. The WEF collaborated with regulators, central bank researchers, international organizations and experts from over 40 institutions to develop the framework. The head of blockchain and distributed ledger technology (DLT) at the World Economic Forum Sheila Warren explained: “Given the critical roles central banks play …

Stablecoins may represent crypto’s best chance of achieving mainstream success and recognition from the traditional financial systems. Just recently, the president of the European Central Bank nourished this viewpoint by stating that the institution should be proactive when it comes to digital assets. On Dec. 12, Christine Lagarde tweeted: “My personal conviction on the issue of stablecoins is that we better be ahead of the curve. There is clearly demand out there that we have to respond to.” The value of stablecoins Being ahead of the curve and responding to demand may seem like contradictory terms, but Lagarde’s comments certainly …

Hong Kong and Thailand’s central banks have stepped closer to implementing a joint central bank digital currency (CBDC) for cross-border payments. On Jan. 22, the Hong Kong Monetary Authority (HKMA) and the Bank of Thailand (BOT) officially announced the outcomes of a joint CBDC research project called Project Inthanon-LionRock. Alongside publishing a joint press release, the banks have issued a detailed 90-page report providing an exhaustive analysis of the potential risks and benefits of CBDCs for real-time money transfers, liquidity management, regulatory compliance, and other aspects of finance. Inthanon-LionRock project was initiated in May 2019 After the HKMA and the …

Major cryptocurrency exchange OKEx is at the 50th World Economic Forum Annual Meeting in Davos this week, promoting blockchain technology as a new motor for the global financial system. Two presentations — delivered by the OKEx Financial Markets Director Lennix Lai on Jan. 21 at the Russia House 2020 and EmTech Investment Meeting 2020 — focused minds on the challenge of extending financial services to the over two billion people worldwide who remain unbanked. “A free, open, permissionless financial system” In his presentation Lai argued that a digital, decentralized financial system underpinned by blockchain and cryptocurrencies can be of mutual …

The central banks of Canada, the United Kingdom, Japan, European Union, Sweden and Switzerland created a group with the Bank for International Settlements (BIS) to jointly research central bank digital currencies (CBDC). According to a press release published by the Bank of England on Jan. 21, the aforementioned institutions will share their experience with other group members as they study potential use cases for CBDCs in their respective jurisdictions. The announcement states: “The group will assess CBDC use cases; economic, functional and technical design choices, including cross-border interoperability; and the sharing of knowledge on emerging technologies. It will closely coordinate …

The Australian Prudential Regulation Authority (APRA) is seeking to oversee stablecoin projects like Facebook's controversial stablecoin Libra. In an official proposal to the Senate published on Jan. 20, APRA submitted a possible regulatory framework dedicated to fintech and regulatory technology (regtech) covering topics ranging from digital wallets to data protection. The proposed framework, “is intended not only to be fit for purpose for the current financial system but also be able to accommodate future developments and technological advances, such as proposals for global stablecoin eco-systems that have been the subject of significant attention in recent months.” Overall, APRA admits that …

Seba, a young Swiss-based digital asset bank holding regulatory licensing, looks to attempt a secondary capital raise to garner over $95 million in additional funds. During the raise, Seba aims to secure 100 million Swiss francs, equivalent to $96.5 million, “from new investors, including financial institutions, family offices and individuals,” Financial News London wrote in a Jan. 17 brief. Recent launch Crypto friendly startup SEBA Bank AG announced its launch on Nov. 12, 2019 after Switzerland’s Financial Market Supervisory Authority (FINMA) approved the outfit to operate in the world of securities and banking. Seba raised significant capital in its first …

JPMorgan’s blockchain spin-off Kadena has fully launched its public blockchain, completing what it calls the “industry’s first hybrid blockchain platform.” Launched on Jan. 15, Kadena’s public blockchain includes full transactions and the ability to write smart contracts, the firm’s CEO co-founder and Will Martino said in a press release shared with Cointelegraph. The company claims the product is the first sharded Proof-of-Work Layer 1 network to make it to market. Kadena’s hybrid blockchain seamlessly integrates a public chain with a private network As the launch completes Kadena’s hybrid blockchain platform, the fully functional hybrid blockchain enables the connection of a …

The central bank of China has completed the top-layer design and joint testing of its soon-to-be-released central bank digital currency (CBDC). As domestic news outlet Sina reported on Jan. 10, People’s Bank of China (PBoC) accomplished the top-layer design of the planned digital yuan, developed relevant standards, carried out research and development and a joint testing of the CBDC. The bank set forth the latest developments in a dedicated article, also highlighting plans to improve cybersecurity of the financial industry network and formulate rules for the accreditation of critical information infrastructure. First real-world tests Reports about China planning to conduct …

The president of the European Central Bank (ECB), Christine Lagarde, supports the bank’s active involvement in the development of a central bank digital currency (CBDC) to address the demand for faster and cheaper cross-border payments. In an interview with French business magazine Challenges published on Jan. 8, Lagarde discussed the most likely threats to the global economy in 2020, among which she named a downturn in trade and a range of uncertainties, geopolitical risks and climate change. Going further, Lagarde noted that “the EU is still the most powerful economic and trading area in the world, with enormous potential.” Not …