The allure of central bank digital currencies (CBDCs) as a solution for improving cross-border payments is fading, according to the Future of Payments 2024 survey by the Official Monetary and Financial Institutions Forum (OMFIF).

Interest in CBDC networks has dwindled, with only 13% of respondents considering them the most promising approach, down from 31% last year. Instead, Instant Payment Systems (IPS) are emerging as the preferred alternative.

CBDCs Face Growing Skepticism

One of the primary challenges central banks aim to tackle with CBDCs is the high cost of cross-border transactions. However, central banks appear increasingly divided on the effectiveness of CBDCs as a solution. The survey highlights governance and operational hurdles as persistent concerns, particularly for multi-currency CBDC platforms like Project mBridge.

Launched as a collaborative effort to streamline cross-border payments, mBridge achieved a minimum viable product stage in mid-2024. Yet, liquidity management and governance remain barriers to adoption. Additionally, the platform’s reliance on Chinese-developed technology has raised concerns about centralization and potential misuse for evading sanctions.

The Bank for International Settlements (BIS) distanced itself from the project, with General Manager Agustín Carstens emphasizing that mBridge is not intended to serve the needs of BRICS nations or facilitate sanctions evasion. Still, skepticism remains. “Even the perception that mBridge could aid such ambitions is enough for Western stakeholders to withdraw support,” remarked Josh Lipsky of the Atlantic Council.

Instant Payment Systems Gain Traction

In contrast, IPS models are gaining momentum, supported by 47% of central banks surveyed. The scalability and proven effectiveness of IPS in domestic markets, especially in regions like Southeast Asia, make it an attractive option for cross-border integration. Notably, five Southeast Asian countries recently piloted Project Nexus, showcasing the potential of IPS to interconnect existing systems seamlessly.

While IPS holds promise, challenges remain. The report identifies governance structures and regulatory frameworks as critical factors requiring attention. Despite these hurdles, IPS is being hailed as the more pragmatic and scalable choice for global payments infrastructure.

As enthusiasm for multi-currency CBDCs wanes, the shift toward IPS underscores a growing consensus among central banks. The focus is increasingly on systems that can deliver immediate, cost-effective solutions without the complexities associated with CBDCs.

The post Central Banks Shifting to Instant Payment Systems Over CBDCs: Survey appeared first on TheCoinrise.com.

According to Odaily, a recent annual survey by the Official Monetary and Financial Institutions Forum (OMFIF) reveals a significant decline in the popularity of Central Bank Digital Currencies (CBDCs) as a tool for enhancing cross-border payments. The 2024 survey indicates that only 13% of respondents support CBDCs as a solution, a sharp decrease from 31% in 2023. In contrast, nearly half (47%) of the surveyed central bank governors favor interconnected instant payment systems, such as the United States' FedNow service, as the preferred future pathway.

The survey also highlights that stablecoins have received zero support for the second consecutive year, reflecting central bank governors' lack of confidence in their ability to enhance global financial infrastructure. The waning interest in CBDCs coincides with the Bank for International Settlements (BIS) withdrawing from the mBridge project. Although BIS denies any political motivations, this move underscores the global tensions surrounding CBDC adoption.

Additionally, the survey emphasizes the enduring dominance of the US dollar, with only 11% of central banks reporting a reduction in its usage. This trend is primarily driven by geopolitical uncertainties that have increased demand for the dollar as a safe haven. The survey also points out the challenges faced by the correspondent banking system, which has long facilitated international settlements but is increasingly viewed as outdated and costly due to complex Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.

The delayed adoption of the ISO 20022 messaging standard may exacerbate this decline, prompting central banks to explore alternative solutions such as tokenization. Over 40% of central banks in developed markets consider tokenization a promising innovation and plan to begin research in this area within the next three to five years.

Interest in central bank digital currencies for enhancing cross-border payments is fading among central banks.

Instant payment systems are emerging as the preferred solution, according to the OMFIF Future of Payments 2024 survey.

Only 13% of respondents now see CBDC networks as the most promising approach, a sharp drop from 31% last year.

The report notes, “High costs are the primary challenge that central banks want to overcome, but there is a remarkable diversity of views when it comes to selecting the best method for doing so.”

mBridge enthusiasm wanes

Project mBridge, currently the most advanced multi-currency CBDC platform, has encountered challenges despite reaching the minimum viable product stage in June 2024.

Liquidity and governance issues are the biggest obstacles limiting its widespread adoption.

One interviewee noted, “mBridge offers a completely new architecture on how to transmit across borders, one that is faster and cheaper,” but the platform’s dependency on Chinese-developed technology raises concerns about decentralisation.

Sanctions evasion has also come under scrutiny as the Bank for International Settlements announced its withdrawal from the project.

BIS General Manager Agustín Carstens stressed, “mBridge is not the BRICS bridge... mBridge was not created to cater to the needs of BRICS,” rejecting the idea that it could aid countries like Russia in bypassing international sanctions.

However, Josh Lipsky of the Atlantic Council remarked, “If there’s even a possibility that mBridge could be helpful to those ambitions, the West wants no part of it.”

Despite assurances, mBridge’s association with China and BRICS nations has amplified Western concerns about its potential to challenge sanctions regimes and financial systems.

IPS gains ground

In contrast, interlinking Instant Payment Systems garnered support from 47% of central banks surveyed, maintaining its position as the top choice for cross-border payments.

This model’s appeal lies in its scalability and growing relevance in domestic markets, particularly in Southeast Asia, where five countries recently trialled Project Nexus.

However, survey respondents cited “governance and developing a regulatory framework” as significant obstacles.

The report notes, “The interoperability models of CBDC design will be a key consideration for global payments going forward,” but enthusiasm has waned.

With only 10% of respondents actively working on multi-currency CBDCs, IPS appears to be the more pragmatic path forward for central banks.

Crypto market movers

Bitcoin is down 0.5% over the past 24 hours to trade at $96,458.

Ethereum is even on the day at $3,704.

What we’re reading

Why Texas’ anti-crypto queen just quit her ‘Sisyphean’ quest to ban Bitcoin mining — DL News

Could there be a Dogecoin ETF in 2025? ‘Today’s satire is tomorrow’s ETF’ says expert — The Block

Bitcoin Price Makes Another Run at $100K as U.S. Traders Return After Thanksgiving — CoinDesk

Ether Gains 19% Against Bitcoin in a Week After Months of Underperformance — Unchained

The wacky world of memecoins is getting pretty grim — DL News

Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.

According to Odaily, the Bank for International Settlements (BIS) and several central banks have recently published a paper addressing legal issues and the design of Central Bank Digital Currency (CBDC) systems. The participating central banks include the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve Board, the Swedish Riksbank, and the Swiss National Bank.

One of the key debates highlighted in the paper is whether CBDC systems should adopt a centralized or decentralized model. In a two-tier system, one option is the hub-and-spoke model, where updates are controlled by the central bank, but data ownership is decentralized. Alternatively, a peer-to-peer design could be implemented, allowing shared update permissions. The paper notes that centralized systems tend to have weaker resilience due to single points of failure, which could become bottlenecks. However, the authors do not consider it appropriate to decentralize the core settlement authority of CBDC systems. In a modular design, core settlement can remain centralized, while other aspects, such as identity, can be decentralized.

Privacy is another significant issue facing CBDCs. While existing technologies can achieve privacy, newer privacy-enhancing technologies (PETs), such as Secure Multi-Party Computation (SMPC) or Zero-Knowledge Proofs (ZKP), offer greater flexibility. However, based on the experiences of two central banks and the BIS Innovation Hub, there is skepticism about whether PETs are ready for real-time execution, given concerns about their complexity and reliability.

The paper also explores other topics, including cybersecurity, offline CBDC functionality, and compatibility with existing point-of-sale systems. These discussions are crucial as central banks worldwide continue to explore the potential implementation of CBDCs, balancing innovation with security and privacy considerations.

A new report suggests the low rate of non-USD-backed stablecoins is affecting wider digital asset adoption. Global trade has been a recurring bison for the crypto market but has performed poorly over the years due to regulatory and industry-related factors. 

The report, “From Digital Currency to Legal Tender: The Role of Regulated Stablecoins in Driving Real-World Payments,” drafted by Quinlan & Associates and IDA, shows limitations in present stablecoin utility, a possible pathway to asset adoption, and regulations. 

Per the release, stablecoins can transform cross-border payments and domestic trade through speed and security. Another major factor for stablecoin adoption is the ability to process transactions within 24 hours and make it more efficient. Several countries have also tried to make their stablecoin replica in the form of Central Bank Digital Currencies (CBDCs) backed with local assets. 

“In the case of domestic payments, users can leverage programmable features to set self-executed scheduled top-ups, conditioned payments, and instant settlements. For cross-border payments, stablecoins can support faster, cheaper, and more transparent user experiences. In these two realms, stablecoins will play a critical role in supporting Hong Kong’s ambition to become a leading global Web3 hub.”

Non-USD Stablecoin Can Raise Adoption 

At the moment, stablecoins account for 0.02% of global trades, a low figure compared to the level projected by maker participants. Two major reasons for this are regulation and the absence of non-USD stablecoins. According to the report, 83% of countries globally are not using USD as their main or substitute currency. 

Although USD remains the most popular asset, about 40% of global trade is in non-USD currencies creating a need for similar stablecoins. The absence of this creates scarcity in the market that could easily be filled boosting the total industry’s numbers.

Lack of Regulation Stalls Adoption 

The stablecoin market cap stands at $200 billion, with USD-based assets making up the majority. Another factor responsible for the slow adoption is regulation. At the moment, some countries have yet to pass comprehensive crypto laws, creating a vacuum. 

This leads to regulatory uncertainty, plunging investor sentiments as they avoid such markets. The report states that 81% of global merchants cite the lack of proper regulations as a major barrier to the adoption of stablecoins. 

Adding to the complexities are frequent lawsuits filed by regulators due to an absence of rules. A notable example is the United States Securities and Exchange Commission’s (SEC) approach in the last two years.

According to Odaily, the Russian Ministry of Industry and Trade has proposed extending the timeline for the launch of the digital ruble by two years, aligning it with the schedule provided to smaller retailers. In October, the Central Bank of Russia revealed its timeline for the digital ruble's introduction as part of a bill submitted to the State Duma. The large-scale rollout is set for July 1, 2025, by which time the largest banks and retailers are required to support the central bank digital currency (CBDC). This deadline applies to retailers with a turnover exceeding 30 million rubles (approximately $274,000). Retailers with revenues between 20 million and 30 million rubles are granted an additional year, while smaller companies receive an extra two years.

The ministry highlighted that there are currently no established rules for the operation and functioning of the digital ruble, leaving retailers insufficient time to prepare and adjust their point-of-sale software. This sentiment is echoed by trade organizations. The Retail Companies Association (ACORT) expressed in a letter, "We believe it is necessary to avoid setting specific deadlines through legislation for the system's introduction at the trade level and to provide at least a two-year transition period during which companies can undertake the necessary work."

Despite the steady increase in research activity, central bankers are showing rapidly decreasing enthusiasm for central bank digital currency (CBDC), the Official Monetary and Financial Institutions Forum (OMFIF) think tank has found in its annual Future of Payments survey.

CBDCs only look good to some central banks

Interlinking instant payment systems, such as the comparatively new US FedNow, is by far the most popular solution among central banks for improving cross-border payments. Almost half (47%) of respondents chose this option, which is only a tiny increment above last year’s results. Stablecoins received a 0% vote, just as last year.

CBDCs fell in this ranking from 31% in 2023 to 13% in 2024. This may reflect a reaction to greater interest in CBDC in certain central banks.

When the Bank for International Settlements (BIS) pulled out of Project mBridge in October, the move was widely interpreted as a reaction to the threat it poses to international sanctions because of the dominance in the project of China and other countries not closely aligned with the West.

The BIS denied that its decision on Project mBridge was political. The US dollar will continue to be the preferred settlement currency, the report concluded. Only 11% of central banks said they were reducing their use of the dollar:

“For now, many players searching for a safe haven in the face of geopolitical tensions will increase holdings of the dollar, reinforcing the dominance of incumbent payments systems.”

Source: Digital Money Institute

Tokenization and TradFi are looking better

The correspondent banking system, in which large international banks provide international settlement services for small local banks, has been in decline for years. The process is becoming more expensive as Know Your Customer/Anti-Money Laundering measures become more complex.

Its decline will only speed up if the new ISO 20022 messaging standard is not implemented on schedule. The survey finds that a significant lag in the new standard’s adoption is likely.

Correspondent banking activity over since 2011. Source: OMFIF

That may explain the lively interest among central banks in tokenization, which could streamline compliance checks. Over 40% of central banks in developed markets “think it is promising and expect to begin work on it in the next three to five years.”

The BIS’s Project Agora, in which the central banks of France, Japan, South Korea, Mexico, Switzerland and the United Kingdom, along with the United States Federal Reserve Banks are participating, is one of many projects blazing the trail toward tokenized transfers. It crucially depends on the use of wholesale CBDCs.

Nonetheless, given the preference for legacy instant payment systems, it seems clear that cross-border payments will remain off the blockchain. The BIS is prepared for that option too. Its Project Nexus, which also depends on the ISO 20022 standard, is developing a common platform for instant payment systems.

Magazine: How the digital yuan could change the world… for better or worse

 

According to Foresight News, the Financial Action Task Force (FATF) participated in a seminar on innovative finance organized by the Eurasian Group (EAG) and the Asia/Pacific Group on Money Laundering (APG) this week. The seminar focused on implementing FATF standards related to virtual assets and virtual asset service providers.The seminar's discussions highlighted strategies to accelerate the adoption of FATF Recommendation 15. Key topics included transforming financial services through innovative payment solutions and the design of Central Bank Digital Currencies (CBDCs). The seminar also emphasized the importance of promoting financial inclusion by bridging gaps in access to financial services through innovative digital solutions. Additionally, it addressed the anti-money laundering risks in the rapidly evolving fintech industry.The seminar underscored the need for a strategic approach to adopting FATF standards, particularly in the context of virtual assets. Participants discussed how innovative financial technologies could be leveraged to enhance financial services while ensuring compliance with anti-money laundering regulations. The event served as a platform for exchanging ideas and best practices among experts and stakeholders in the financial sector.

The Central Bank of Iran (CBI) has taken steps to introduce the Digital Rial, its central bank digital currency (CBDC). At the 11th Annual Conference on Modern Banking and Payment Systems, Governor Mohammad Reza Farzin made these announcements.

Modernizing the Financial Environment in Iran

Governor Farzin stressed how important it is to keep up a contemporary financial system that complies with international norms. Since 2018, the Digital Rial has been in development. Research has advanced through several phases, including a pre-pilot phase in which major Iranian banks participated.

Iran’s current digital banking infrastructure, according to Farzin, provides a solid starting point for this shift. One of the best examples of the nation’s effective financial systems is the Shetab payment network, which can execute transactions in less than two seconds. Iran’s larger goal to incorporate modern technologies into its banking operations is reflected in its digital-first strategy.

The Digital Rial’s Function in Domestic Finance

The primary purpose of the Digital Rial is to operate inside Iran’s own economy. Its pilot program, which was carried out on Kish Island, a well-known free trade area with a sizable tourism industry, gave important information about its possible applications. The Digital Rial functions in a non-intermediated manner, which streamlines transactions and improves user accessibility in contrast to traditional banking systems.

The Central Bank of Iran (CBI) plans to introduce its digital currency, the Digital Rial, as part of a broader initiative to modernize the country’s banking infrastructure and enhance international financial collaboration.
Mohammadreza Farzin, the governor of the CBI, broke in… https://t.co/B2Fr3Q2Ft1 pic.twitter.com/KJCKSAPX84

— Iran Daily (@IranDailyWeb) November 26, 2024

Iran hopes to solve financial system inefficiencies and lessen reliance on cash with its CBDC project. Additionally, by increasing trust in digital transactions, these initiatives may help modernize the nation’s consumer behavior.

Handling the Difficulties of Global Sanctions

The ongoing problem of international sanctions is one of the biggest obstacles facing Iran’s banking industry. Iran has been forced to look for alternate options as a result of these limitations, which have restricted the nation’s access to international financial networks like SWIFT.

Governor Farzin emphasized how the ACU-MIR system and other alternative financial networks are being established. This platform was created in partnership with Asian financial institutions and has grown to be an essential instrument for doing business internationally with countries like Pakistan and India. Iran has shown that it can work around sanctions and promote regional financial cooperation by putting this system into action in October 2023.

Developing International and Regional Partnerships

Another key component of Iran’s foreign policy has been its alliance with BRICS, a grouping of significant rising countries that includes Brazil, Russia, India, China, and South Africa. By encouraging the use of local currencies in international commerce, the BRICS nations are actively working to lessen their need for the US dollar. This offers Iran a chance to join a developing financial system that supports its geopolitical objectives.

Farzin emphasized that continuing initiatives have already achieved major advances in the direction of settling transactions in BRICS currencies, especially those of China and Russia. This program supports Iran’s overarching goal of broadening its financial alliances and lessening its susceptibility to Western sanctions.

Beyond currency-based commerce, Iran and Russia have expanded their cooperation to encompass payment system integration. An important turning point in this cooperation is the link between Russia’s MIR system and Iran’s Shetab network. It is anticipated that this integration would improve financial exchanges connected to tourism and facilitate easier cross-border transactions.

By 2025, Farzin said, this network would be expanded to enable Russian visitors to access Iran’s point-of-sale systems and vice versa. Such actions foster new prospects for regional financial connectivity in addition to fortifying bilateral economic connections.

Using Fintech to Boost Financial Stability

Iran’s plan to mitigate the impact of sanctions also heavily relies on the larger fintech industry. The Central Bank hopes to build a robust financial system that can function without the assistance of conventional international banking networks by investing in new technologies.

Iran has investigated a range of digital financial instruments, such as cryptocurrency-based solutions, for international commerce, according to Farzin. Although regulatory restrictions have made these initiatives difficult, they demonstrate the nation’s will to use fintech to boost economic resilience.

A Vision for the Future

The introduction of the Digital Rial is a declaration of purpose rather than merely the acceptance of a new financial tool. Iran is establishing itself as a forward-thinking player in the global financial scene by adopting contemporary banking methods and encouraging international collaboration through alternative systems.

This strategy is in line with a larger trend among nations looking to innovate their way past difficult geopolitical obstacles. The creation of a CBDC is a symbolic and pragmatic move for Iran toward a more independent and interconnected financial future.

The success of the Digital Rial will depend on a number of important aspects as Iran approaches the formal debut. These include promoting public trust, increasing the CBDC’s usage in cross-border transactions, and smoothly integrating it with current financial systems.

Strategic alliances in the area and the CBI’s dedication to modernizing the banking industry point to a concerted effort to meet these objectives. Although there are still obstacles to overcome, especially in light of sanctions, Iran’s innovative strategy provides a model for other countries dealing with comparable limitations.

The success of the Digital Rial and other projects in the upcoming years may demonstrate how technology could transform the way that geopolitical and economic barriers are overcome. Iran’s experience might teach the international banking world important lessons as it continues to negotiate this challenging environment.

The post Digital Rial Emerges as Iran’s Strategy for Modern Finance and Sanction Evasion appeared first on Metaverse Post.

Kima recently completed the first CBDC transaction of a tokenized stock at the Tel Aviv Stock Exchange during the Bank of Israel event. Their secure interoperability protocol allows settlements between different financial systems, eliminating smart contract vulnerabilities. The successful transfer of a tokenized stock via digital shekel showcased Kima's cross-ecosystem interoperable DvP solution. Administered by the Bank of Israel, the transaction demonstrated the potential of adopting a CBDC. Kima's decentralized settlement layer facilitated the transaction, connecting buyers and sellers directly without intermediaries. The process was safe, instant, and free from delays or extra fees. Kima's infrastructure includes a UPR and Liquidity Cloud, enabling seamless transactions across multiple blockchains. CEO Eitan Katz highlighted the efficiency of their solution, empowering users to conduct smooth cross-asset transactions. Kima's protocol aims to bridge the gap between traditional finance and crypto, ensuring secure and efficient transactions for a wider audience. Read more AI-generated news on: https://app.chaingpt.org/news

The National Bank of Rwanda (which is the Central Bank of Rwanda) has agreed with the Capital Markets Authority of Rwanda (CMA Rwanda) on cryptocurrency regulations, said Governor John Rwangomba.

According to local reports, the Governor revealed this as part of a response to a question from a legislator on the use of Bitcoin in the East African nation.

“They are currencies that people venture into and the lucky ones make profit from them and become millionaires in a short time, and the unlucky ones even lose what they had,” Rwangombwa said about cryptocurrencies generally.

“What we are doing, in partnership with the Capital Markets Authority [CMA Rwanda], based on what is being done at the international level, is to put in place regulations governing what we call virtual assets which can be traded in our country,” he said.

 

In 2023, the apex bank issued a public warning to residents not to be involved in cryptocurrencies citing several risks including the volatility of the assets, an issue which the Governor spoke about in his response to the legislator.

 

“[Bitcoin] is known to go up sharply, and crash. So, because there are no laws that effectively govern their functioning, there are many speculations involved,” he remarked.

The Central Bank of Rwanda Issues Public Notice Warning Against Cryptocurrencies Including Stablecoins

The bank said market value of crypto-assets including stablecoins declined from $3 trillion in 2021 to 1 trillion in mid-2022.https://t.co/9v7tDoCOR6 @CentralBankRw pic.twitter.com/mAtMAIIr5O

— BitKE (@BitcoinKE) February 24, 2023

So far, he said, Rwandans are advised to avoid dealing in cryptocurrencies due to risks of fraud and lack of regulation but is resigned to the staying power of the digital assets.

 

“We cannot get rid of [cryptocurrencies],” Rwangombwa told lawmakers.

“So, it was necessary that we set up laws and regulations governing their functioning in the country.”

 

On a similar note, since 2022, the bank has conducted a feasibility study for CBDC implementation and launched a public consultation seeking views from the public about a Central Bank Digital Currency (CBDC) in May 2024.

CBDC | National Bank of Rwanda (BNR) Seeks Public Views on a CBDC Ahead of Possible Proof-of-Concept

The Proof-of-Concept phase will allow the National Bank of Rwanda to experiment with a CBDC within a controlled, limited setting, aiming to gain understanding of the technology… pic.twitter.com/bGdwpC27ok

— BitKE (@BitcoinKE) May 7, 2024

The consultation period was scheduled to end in June 2024 upon which the bank was to embark on a proof-of-concept to validate the use cases identified during the research phase and demonstrate if the risks identified can be mitigated.

According to a deputy governor, the bank could introduce a national Central Bank Digital Currency (CBDC) within the next two years.

[TECH] CBDC | The National Bank of Rwanda Outlines Plans for a Central Bank Digital Currency in 2 Years: Rwanda is aiming to launch its own national Central Bank Digital Currency (CBDC) within the next two y.. https://t.co/1jB8Yhu0WG via @BitcoinKE

— Top Kenyan Blogs (@Blogs_Kenya) June 11, 2024

 

 

 

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Morocco is moving further in their attempts to open up cryptocurrencies and that certainly shows the country’s shift in focus towards cryptocurrencies. Now that Morocco’s central bank Bank Al-Maghrib has reportedly developed a draft law, a more safe and standardized technology environment of the financial sector will be formed. This comes at a time when citizens’ interest in cryptos is stretching up, and this shows that the risks are being measured against the opportunities as they phase out.

Strategic Management Framework for the Regulation of Digital Property

Bank Al-Maghrib unveiled its intention to release a cryptocurrency regulation policy at a conference held in Rabat. Abdellatif Jouahri, the governor of the bank, disclosed that the draft law, developed in cooperation with the different stakeholders with assistance from the World Bank, is being perfected.

He emphasized the importance of regulation to address potential risks while allowing innovation to thrive: “The different chapters are okay. Well, right now, we are in more dialogues with different interested parties. This one is a little long, but bear with me, please, for the sake of hopefully having the full support on this project”.

Morocco Crypto

It is one of the measures that the government of Morocco is taking to ensure it is ready for the speedy integration of digital assets. Thus, in making standard practices obvious, the authorities try to prevent certain threats, including fraud and other unlawful operations, as well as encourage the population to use financial services actively.

Central Bank Digital Currency (CBDC): The Next Frontier

Besides cryptocurrency legislation, Bank Al-Maghrib is researching whether the implementation of a CBDC will bring additional advantages to the country. Speaking to Jouahri, the bank has been researching various countries’ CBDCs to assess the feasibility of implementing them in Morocco.

He stated: “We initiated the CBDC project over three years ago to inform strategic direction and enhance experience in this specialised field.”

Morocco Crypto

On the positive side, a CBDC might afford such advantages as upgrades of the rate of the money inclusion and diminishing the cost of transactions. This vision corresponds to recurrent trends in many countries evaluating the benefits of central bank digital currencies.

Morocco’s Shift: From Crypto Ban to Regulation

 The recent measures taken by Morocco with regard to cryptocurrencies are different from its previous measures. Moroccan Exchange Office in 2017 declared cryptocurrency transaction as a violation of exchange regulations and also issued a notice to the public regarding consumer risks and their connection with the unlawful activities.

Nevertheless, the acceptance of cryptocurrency has tremendously increased in Morocco. The public awareness of digital assets has created pressure on the government to change its stance, which has resulted in the creation of this draft regulation. As of December 2022, the executive director of Bank Al-Maghrib suggested that the preparation for the regulation of cryptocurrencies has been nearly finalised.

Such a move highlight the willingness of Morocco to open up for changes in the financial sector while at the same time protecting the consumer and monitoring international legal policies.

Conclusion

This is especially true as Morocco outlines its approach to the future of money and examines the potential of CBDCs, and remains one of many examples of how furthering innovation can also be done with careful consideration. Through engagement of relevant relevant stakeholders and leveraging on international best practice, Morocco has set itself in a pedestal to establish a secure, inclusive and innovative financial system.

The draft framework can be considered the beginning of Morocco’s path to the adoption of digital assets, as well as emphasizing the need for regulated growth. As the world remains obsessed with cryptocurrencies, then Morocco’s progressive policy could be the key to better financial future. Keep following The Bit Journal and keep an eye on crypto updates and developments.

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Morocco is drafting a law to regulate cryptocurrency, moving away from its past ban to create a safer digital economy.

The government sees cryptocurrency regulation as a way to attract global investment and boost economic growth.

Morocco is also considering a digital currency to improve financial access for everyone, especially underserved communities.

Morocco is to officially legalize cryptocurrencies again following the ban in 2017. A new draft is being prepared to guide its adoption. Abdellatif Jouhari, governor of the country's Central Bank, illustrated the importance of keeping up with global financial trends at an international conference in Rabat. 

https://twitter.com/MoroccoWNews/status/1861398136020697240 Legalizing Cryptocurrency for Economic Growth

The Moroccan government is actively revising its stance on digital assets. With approximately 1.15 million Moroccans using peer-to-peer crypto platforms, authorities acknowledge the demand for a regulated framework. This framework aims to ensure secure transactions while fostering innovation in blockchain technology.

In addition to resolving security issues, the new rule demonstrates Morocco's desire to draw in foreign capital for blockchain projects. Therefore, it is anticipated that the change will establish the country as a major participant in the expanding cryptocurrency industry.

Exploring CBDCs for Financial Inclusion

Additionally, Morocco is considering launching a central bank digital currency. Jouhari highlighted that a CBDC could enhance financial inclusion and support public policy goals. By providing an accessible digital currency, Morocco could further modernize its financial systems while improving accessibility for underserved populations.

Moreover, the government is working closely with international organizations to develop comprehensive crypto laws. This collaborative effort underscores Morocco’s dedication to creating a balanced approach that encourages growth while mitigating risks.

A Strategic Move Toward a Digital Economy

The draft law reflects Morocco's evolving cryptocurrency narrative and readiness to embrace global financial innovation. Significantly, the nation aims to transition into a regulated digital economy, fostering trust and economic stability.

This pro-crypto stance highlights Morocco’s readiness to compete on the global stage. Besides promoting blockchain adoption, it ensures the legal framework aligns with international standards.

Morocco’s success could inspire other nations to reconsider their approach to digital assets. This new era of economic transformation showcases the country's commitment to innovation and sustainable growth in a digital-first world.

The post Morocco Set to Legalize Cryptocurrency Again, Embracing Global Financial Trends appeared first on Crypto News Land.

The Russian Ministry of Industry has proposed a two-year transition period for implementing digital ruble payments in retail over infrastructure concerns.

The Russian Ministry of Industry has called for a two-year transition period before the mandatory adoption of payments using the central bank digital currency — also known as the digital ruble — citing concerns over unprepared infrastructure.

In a response to a draft law that would make digital ruble payments mandatory for large retailers by July 2025, the ministry warned that the rushed implementation of the system could create serious challenges for businesses, Russia’s state-controlled media outlet Izvestia reports.

The proposed legislation includes a provision requiring retailers to provide customers with the option to pay using the digital ruble. According to the draft, large federal retailers must comply by July 2025, while smaller businesses may receive a delayed implementation depending on annual revenue.

You might also like: Russia’s central banker behind CBDC steps down

More time needed for CBDC adoption

However, the Ministry of Industry outlined in a response to the government’s proposal the lack of clear operational guidelines for the digital ruble, the report reads. The ministry particularly emphasized the need for additional time to finalize software, update information systems, conduct testing, and train staff.

To reduce these risks, the ministry is reportedly calling for a two-year transition period to give businesses time to adjust to the new system.

As crypto.news previously reported, Russia’s central bank governor, Elvira Nabiullina, stated that if pilot programs for the digital ruble proceed as planned, the country could launch the digital currency in a “mass implementation” by July 2025. However, she noted that the transition will be gradual.

The head of the Bank of Russia also noted that the widespread adoption of Russia’s CBDC could take five to seven years, emphasizing that it will be a “natural process” driven by the needs and convenience of businesses and consumers.

Read more: Bank of Russia flags dual risk factors for real-world assets

Brazil proposes a Bitcoin reserve, allocating 5% of its international assets to hedge risks and support its CBDC.

The Bitcoin reserve bill includes advanced security, public education, and compliance with Brazil’s fiscal laws.

Brazil joins nations exploring Bitcoin as a strategic asset, reflecting growing crypto adoption on a global scale.

Brazil’s Chamber of Deputies is reviewing a new bill proposing the creation of a national Bitcoin reserve. Federal Deputy Eros Biondini filed the bill on November 25, advocating for up to 5% of Brazil's international reserves to be allocated to Bitcoin.

https://twitter.com/CryptoAaravX/status/1861637294924669068

The proposed Bitcoin reserve, titled the Sovereign Strategic Reserve of Bitcoins (RESBit), aims to diversify the Treasury’s holdings. The plan also includes supporting Drex, Brazil’s central bank digital currency (CBDC). Biondini highlighted Bitcoin’s potential to hedge against exchange rate fluctuations and geopolitical risks.  

If passed, the reserve would be managed by Brazil’s Central Bank and the Ministry of Finance. Moreover, it would utilize cold wallet storage and advanced blockchain monitoring systems to ensure security and transparency.  

Legislative Framework for Bitcoin Reserve Management  

The legislation emphasizes compliance with Brazil’s Fiscal Responsibility Law. In addition, management would involve regular reporting to the National Congress. Semiannual updates would detail the reserve’s performance and Bitcoin holdings.  

Additionally, the bill includes public education initiatives about digital assets. It proposes a controlled and gradual process for acquiring Bitcoin to build the reserve responsibly.

Brazil’s move could position it as a leader in adopting cryptocurrencies for sovereign purposes. The initiative reflects a growing trend among nations exploring Bitcoin as a strategic asset. El Salvador and Bhutan have already integrated Bitcoin into their national strategies.  

Bitcoin as a Strategic Asset Globally  

The concept of Bitcoin reserves is becoming more popular worldwide. Plans are currently being made for a comparable reserve in the United States. Lawmakers who support cryptocurrencies, like Senator Cynthia Lummis, suggest accumulating 1 million BTC within a span of five years. 

Brazil’s proposed reserve marks a significant step toward broader Bitcoin adoption. If the bill succeeds, it could encourage other countries to follow suit.

The post Brazil Eyes Bitcoin for Treasury Diversification in Latest Legislative Proposal appeared first on Crypto News Land.

As per recent information from a regional media outlet, the prosecutor of South Korea has seized Bitcoins from an unnamed crypto allegedly operating a crypto scam victimizing the elderly of the nation. 

It further notes that, on November 26, 2024, the prosecutor’s office revealed that it had seized digital assets valued at around $9.3 million. 

Earlier this month the alleged scammer was convicted for operating a multi-style crypto fraud. In the same case, the court ruled ordering a 10-year prison and a penalty of 13 billion in national currency. 

The media reports quotes that the convicted have refused to pay even a single penny of the penalty. Per the person aware about the fact the jailed mastermind told the honorable court that he doesn’t even have a 0.01 percent regret of his crime.

As per prosecutors’ argument even after the arrest of the scammer his former wife and children continue to live in an expensive residence valued over billions in South Korean currency.

Furthermore, she used the same funds (earned by defrauding innocent investors) to get her children expensive tuition. It is worth noting that she was planning to get settled in Canada to enjoy her expensive and lavish life far from the regulator’s eye.

Can South Korea Tackle the Surge in Crypto-Related Crimes?

Since the beginning of this year till Mid November, the enforcement agency, regulators and other government authorities have seized digital assets worth millions of dollars and hundreds of illegal links to cryptocurrencies and related services.

Earlier on November 07, 2024, it was reported that a scammer tried to defraud an official of Gyeonggi Southern Provincial Police Agency’s Mobile Criminal Investigation Unit who was nabbed, exposing a million-dollar fraud.

However, it is worth noting that South Korea has an appreciable number of cryptocurrency holders and users with a big market size. 

The South Korean government has postponed its plans to impose a 20 percent tax on crypto earnings until 2025. Most recently the officials revealed a new tax reform strategy, pushing back the crypto tax policy due to ongoing market stagnation and the need for additional time to implement investor protection measures.

This delay follows a previous decision by the country’s lawmakers to defer the taxation of virtual assets from its original 2023 deadline. 

In the past few months the nation has expressed its keen interest in CBDC and a recent report notes that it has authorized seven national banks to take part in a pilot program testing digital financial services based on central bank digital currency and deposit tokens. 

In SK, crypto trading is permitted as long as the assets are not explicitly banned, despite the absence of formal legalization by the government. On October 10, the Financial Services Commission of the nation revealed plans to create a digital asset community.

South Korea achieved a 73.5% score, solidifying its position as one of the world’s fastest-growing cryptocurrency hubs.

Brazilian lawmaker Eros Biondini has put forth a bill suggesting the establishment of a Bitcoin (BTC) Sovereign Strategic Reserve (RESBit) with an allocation of up to $18.6 billion, equivalent to 5% of Brazil's international reserves. The proposed RESBit aims to diversify Brazil's Treasury assets, safeguard international reserves against exchange rate fluctuations and geopolitical risks, and serve as a backing for the country's central bank digital currency (CBDC), the Drex. The bill seeks to modernize Brazil's technological and financial management to enhance competitiveness in the global digital economy. It references successful blockchain integration in countries like El Salvador, the US approval of ETFs, China's digital yuan, Dubai's crypto initiatives, and the MiCA regulation in the EU. The legislation also emphasizes the growing acceptance of crypto as a legitimate asset class and outlines plans for research, education, and startup incentives in the blockchain space. Brazil's Central Bank and Ministry of Finance would oversee the custody of BTC under the bill, with regular reporting on RESBit's activities. The initiative aims to position Brazil as a leader in the digital economy, reduce economic risks, and foster technological and financial growth opportunities. Read more AI-generated news on: https://app.chaingpt.org/news

Brazilian lawmaker Eros Biondini has put forth a bill suggesting the establishment of a Bitcoin (BTC) Sovereign Strategic Reserve (RESBit) with an allocation of up to $18.6 billion, equivalent to 5% of Brazil's international reserves. The proposed RESBit aims to diversify Brazil's Treasury assets, safeguard international reserves against exchange rate fluctuations and geopolitical risks, and serve as a backing for the country's central bank digital currency (CBDC), the Drex. The bill seeks to modernize Brazil's technological and financial management to enhance competitiveness in the global digital economy. It references successful blockchain integration in countries like El Salvador, the US approval of ETFs, China's digital yuan, Dubai's crypto initiatives, and the MiCA regulation in the EU. The legislation also emphasizes the growing acceptance of crypto as a legitimate asset class and outlines plans for research, education, and startup incentives in the blockchain space. Brazil's Central Bank and Ministry of Finance would oversee the custody of BTC under the bill, with regular reporting on RESBit's activities. The initiative aims to position Brazil as a leader in the digital economy, reduce economic risks, and foster technological and financial growth opportunities. Read more AI-generated news on: https://app.chaingpt.org/news

Iran will launch a central bank digital currency (CBDC) in the near future, Central Bank of Iran (CBI) governor Mohammad Reza Farzin said at a national banking conference on Nov. 25. He called attention to the country’s well developed digital financial infrastructure and pledged to continue to innovate in the face of sanctions.

CBDC to keep the financial system up-to-date

The CBDC launch is part of a larger effort to maintain modern banking practices, Farzin said at the Modern Banking and Payment Systems Conference in Tehran, according to news agency Tasnim. Farzin said:

"Developing innovative banking systems is a central bank's responsibility worldwide, and we are determined to fulfill this duty in Iran." 

The digital rial has been in development since 2018 and reportedly uses open-source Hyperledger Fabric technology. By mid-2023, it had completed the “pre-pilot” stage of research with the involvement of large Iranian banks.

The CBI launched a retail CBDC pilot project in June on the island of Kish, which is an Iranian free trade zone that hosts 12 million tourists per year. The digital rial is so far apparently non-intermediated and focused on domestic use.

Source: Iran Daily

Fintech to beat sanctions

Farzin said international sanctions “remain a significant hurdle” for the CBI, but progress is being made. He mentioned the integration of Russian MIR and Iranian ACU payment systems that took place in October, saying:

"We've replaced SWIFT with this platform and strengthened our ties with BRICS, which is shaping global trade with a strategic plan through 2025."

In addition, Farzin said the Iranian Shetab payment system, “with transactions processed in under two seconds, is among the most efficient in the region." It is also in the initial stages of connecting with Russia’s MIR system.

Iran and Russia have collaborated on other cross-border payment products, such as a gold-back stablecoin. Iran has also experimented with the use of cryptocurrency for international trade, but cryptocurrency exchanges face consequences of doing business with Iran in violation of US sanctions.

Magazine: How the digital yuan could change the world… for better or worse