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CBDC

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The Reserve Bank of Australia (RBA) has announced a partnership with Commonwealth Bank, National Australia Bank, Perpetual and ConsenSys Software to explore the use of a wholesale central bank digital currency (CBDC) using distributed ledger technology (DLT). The project is currently limited to the wholesale market, reflecting the RBA’s conclusion in a recent bulletin on the Design Considerations, Rationales and Implications of a Retail CBDC that there is currently no strong public policy case to…

Central bank digital currencies (“CBDC”) has been one of the hottest topics of 2020. We reported recently that the Bahamas planned to roll out its e-currency in October. China has probably been the most aggressive in developing plans for a future launch of a CBDC, the digital yuan. On October 9, 2020, the BIS and seven central banks released a report concerning the issuance of CBDCs. The report, Central bank digital currencies: foundational principles and core features, was…

Around the New Year, we posted about the pilot program launched in the Bahamas for its central bank digital currency (CBDC), known as the Sand Dollar. It has apparently been successful because Bloomberg is reporting that the country will roll out the e-currency nationwide in October. Sand Dollar transfers are made by mobile phone. Each Sand Dollar is pegged to the Bahamian dollar, which is, in turn, pegged to the U.S. dollar. There are, currently…

Effective as of December 27, 2019, the Bahamas went live with its central bank digital currency (“CBDC” ) platform, known as the Sand Dollar.  It will undergo a pilot phase testing in Exuma, which will be extended in the first half  of 2020 to Abaco.  According to the outline published by the Central Bank of the Bahamas, the Sand Dollar is a digital fiat currency, not a cryptocurrency: A digital fiat currency would not be…