Bank of England to Study Central Bank Digital Currencies

Central Bank of England issued a working paper, which describes three types of possible digital currencies, that can be issued by a central banks
22 May 2018   665

he Bank of England published a working paper that examined various risks to economic stability associated with central bank digital currencies (CBDC). This is reported by Cointelegraph.

The paper examines three CBDC models that differ in coverage, starting with models that only banks and non-bank financial institutions can use, and to those that can be accessed by households and non-financial institutions.

In the first case, financial institutions will be able to interact directly with the central bank to buy and sell CBDC for conditioned securities. It is assumed that financial institutions will not provide access to such currencies to households and companies that are fully funded by the money of central banks.

With the expansion of the CBDC throughout the economy, access to them will be available from both banks and households, as well as from other companies. Thus, CBDC will be able to fulfill the role of money for all participants in the economy. At the same time, only banks and non-bank financial institutions will be able to buy a digital currency from the central bank, and the rest of the economy will be able to access it through specialized exchanges.

In the third option, only banks and non-bank financial institutions gain access to the CBDC, and at least one of them takes on the role of a "narrow bank", issuing an asset fully secured by CBDC and provided to households and other companies, but not involving credit rights.

Binance Singapore Unit to Apply For License

Under the new law, aimed at regulating crypto paymetns and trading, firms must register with the Monetary Authority to receive a license
17 February 2020   246

Binance, a Singapore-based cryptocurrency exchange unit, has applied for a license under the new Payment Services Act, which entered into force on January 28.

We have already applied. We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.

 

Changpeng Zhao

Founder and CEO, Binance

Under the new law, crypto companies in Singapore must register with the Monetary Authority and receive one of three licenses: an exchange of money, a standard or large payment institution. The measure is aimed at regulating payments and crypto trading using requirements for participants in the traditional finance industry. Zhao did not specify which of the licenses Binance Singapore chose.

Binance has been offering crypto-fiat trading services in Singapore since April 2019 and works with eight coins, including Bitcoin, Ethereum and XRP. The trading platform is supported by Vertex Venture Holdings, a venture division of Singapore's Temasek Holdings.