South Korea’s central bank has included a summary of research on central bank digital currencies (CBDC) in its 2018 annual payment settlement report issued Tuesday, March 26. The development of distributed ledger technologies (DLT) and crypto assets has fueled a debate over CBDCs, especially after Uruguay and Tunisia issued their own, the report reads. The Korean central bank had also conducted its own research on CBDCs while it was considering launching one earlier in 2018 — an idea that was later put aside. The report included tests of blockchain-based solutions: generally speaking, the Korean experts believe that crypto assets can …

Ukraine’s central bank has completed a pilot scheme for its national digital currency, the e-hryvnia, local press agency Interfax Ukraine reported on Feb. 22. The National Bank of Ukraine (NBU), which has been considering the concept for at least a year, began the pilot in December 2018, the head of its payment networks and innovative growth department Aleksandr Yablunivskiy revealed. “At the end of last year we began a practical pilot, when the instrument was released for NBU employees under current methodology, in order to assess its practical use aspects and the ability of the central bank to realize future …

The idea of issuing a central bank digital currency (CBDC) is too attractive to ignore, a postdoctoral researcher from the University of Luxembourg wrote in a study. The research was shared by the Oxford Business Law Blog on Friday, Feb. 22. Hossein Nabilou, a postdoctoral researcher at the Faculty of Law, Economics, and Finance of the University of Luxembourg, presented his findings in a study entitled “Central Bank Digital Currencies: Preliminary Legal Observations.” The report focused on potential challenges that launching a CBDC might cause for the European Central Bank (ECB). According to Nabilou, cryptocurrencies have significantly impacted the banking …

South Korea’s central bank issued a warning over central bank digital currencies (CBDCs) a week after saying it would not introduce one itself. The development was reported in local news outlet Yonhap News Agency, Feb. 7. CBDCs, which are also known variously as state-backed or government-backed digital currencies, involve a blockchain-based version of a country’s fiat currency either replacing or circulating in tandem with paper notes and coins. A number of governments are currently examining the feasibility of using a CBDC, while South Korea formally decided against the measure in late January. The decision came as a result of a …

China’s economics experts fail to agree on the future of blockchain and digital currency, according to a survey from internet giant Tencent, cited by local news outlet Jiemian Feb. 1. Sent to 100 chief economists from banks, research institutions and universities, the survey was reportedly conducted by Tencent’s Financial Science and Technology Think Tank. Participants were asked about the Chinese government’s monetary policy for 2019, as well as factors such as the yuan’s future volatility. The results showed schisms between them, Tencent highlighting six areas of disagreement. For example, roughly half — 51 percent — of respondents would support Beijing …

PayPal’s co-founder Luke Nosek has said that his firm initially wanted to create a digital currency that would be independent from banks and governments, similar to crypto. The video of his comments was uploaded to crypto streaming service Bloxlive.Tv on Thursday, Jan. 31. At a panel at the World Economic Forum in Davos, Switzerland last week, Nosek was asked whether PayPal or WeChat Pay, an in-app payment system used by the major Chinese messenger, have already solved various problems related to online transactions, or whether cryptocurrencies can also solve those problems. Responding to that question, PayPal’s co-founder said: “Many people …

South Korea's central bank, the Bank of Korea (BOK), says it won’t be issuing a central bank digital currency (CBDC) in the near term, local English-language newspaper the Korea Herald reports Jan. 29. Having conducted a study into the prospects for domestic CBDC issuance, the BOK has reportedly concluded there is no urgent need to pursue such a project in the close future. An unnamed BOK official told the Korea Herald that the study was focused on examining the possible legal and social effectiveness of CBDCs from a wide perspective, adding that: "We have no plans to issue any type …

Iran could unveil its state-backed cryptocurrency at the Electronic Banking and Payment Systems conference in Tehran this week, local English-language news outlet Al Jazeera reported on Jan. 27. Iran, which has faced fresh sanctions from the United States since November, had previously planned to use blockchain-based financial tools as a way of sidestepping restrictions on its economic growth. Though a central bank-issued digital currency (CBDC), which could be a rial-backed crypto, it was thought Tehran could forge an alternative to SWIFT, the global settlements system that some Iranian banks cannot access. Sources remain unsure whether such a large-scale implementation will …

The central bank of Egypt wants to introduce a digital version of the Egyptian pound to reduce costs, local English language news outlet Amwal Al Ghad reported Dec. 16. Ayman Hussein, sub-governor of the Central Bank of Egypt (CBE), told an Abu Dhabi conference on Sunday that “feasibility studies” were currently ongoing. In line with various authorities in the vicinity, Egypt believes a blockchain-based digital version of its fiat currency can help keep issuance and transaction costs to a minimum compared to coins and banknotes, Amwal Al Ghad notes. The move is one step in the journey to a cashless …

Calgary, a city in the Canadian province of Alberta, has launched its own digital currency. The Calgary Dollar will allow holders to pay for services and goods at local shops, major Canadian media outlet Global News reports Friday, Dec. 7. According to HuffPost Canada, the Calgary Dollar was initially launched in 1996, with citizens and businesses offering goods and services in exchange for the local currency alongside the Canadian dollar. This new move in 2018 allows citizens to download an app and store the digital currency on their devices. Calgary is reportedly the first city in Canada to launch its …

The head of the International Monetary Fund (IMF) has said the international community should “consider” endorsing central bank issued digital currencies (CBDCs) in a speech at the Singapore Fintech Festival Nov. 14. IMF managing director Christine Lagarde said that despite being “not entirely convinced” on the concept of cryptocurrencies more generally, there may be a case for states to issue government-backed tokens or similar assets. “I believe we should consider the possibility to issue digital currency. There may be a role for the state to supply money to the digital economy,” she told the event. The comments come a day …

An Israeli study group exploring digital currency options has recommended that the country’s central bank not issue its own token, a press release confirmed Nov. 6. The interdepartmental team, set up in November 2017 by the governor of the Bank of Israel to “examine the issue of central bank digital currencies [CBDCs],” revealed its findings in a full report this week. “Central banks around the world are examining the possibility of issuing digital currency and/or using distributed technologies in the payment systems, but no advanced economy has yet issued digital currency for broad use,” it summarizes, adding: “The team does …