Canada’s Central Bank will release cryptocurrency

CB would be issued cryptographic versions of fiat currencies
01 December 2017   397

Recently Ben Fung from the Central Bank of Canada and Walter Engert from the office of the superintendent of Financial Institutions published a document about the pros and cons for issuing central bank digital currency (CBDC). And they consider that it is possible for Central Banks to issue cryptocurrency. But they think the benefits from it would vary depending on whether how developed is the economy in countries.

Also they identify three different supposed benefits to a central bank for issuing a digital currency: payments for consumers, financial inclusion and stability. it would easy online payments and entice smaller merchants to offer services over the internet. In other economies, it can be benefits in reducing costs for retail payments to consumers.

Then they think that digital money would give consumers a largely risk-free way to store value but the ease of leaving bank deposits for a fiat crypto could accelerate financial turmoil.

 

German Financial Regulator Clarifies Stance on ICOs

The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) has clarified its position on ICOs
22 February 2018   32

German financial regulator admitted it was receiving many inquiries about the status of tokens and cryptocurrencies. According to an advisory letter, BaFin provides some basic definitions of ICOs and related terms. It is important because the results of a new survey showed that more than two-thirds of Germans know about bitcoin.

In this letter, BaFin educates the public and explains how tokens are typically generated, how blockchain works and that ICOs are used to raise funds for startup projects. The note states that for regulatory purposes, ICOs, tokens, coins, and cryptocurrencies are subject to the existing provisions in the field of securities supervision and other relevant national and EU laws.

The authority advises participants in ICOs to check and follow rules applicable to regulated financial instruments, such as securities. If businesses or individuals have any doubts about regulations, they should approach BaFin.

According to BaFin, companies should fulfill any obligations under the Banking Act and the Capital Investment Code, the Insurance Supervision Act and the Payment Services Supervision Act. The transactions may be prohibited if relevant regulatory requirements are not met.

The authority also states that legal classification of tokens requires precise examination. It will determine their status on a case-by-case basis after studying their features. The token should be transferable and tradable on cryptocurrency trading platforms in order to be classified as a security.