The European Central Bank is stressing the need for immediate action in creating a digital euro, cautioning that slow legislative progress could hinder Europe's competitiveness in central bank digital currencies (CBDCs). Evelien Witlox, the ECB's digital euro project manager, emphasized the importance of accelerating efforts as countries like the UK and China advance discussions on their own digital currencies. Witlox highlighted the lack of a EU-wide digital payment solution and the dependence of many eurozone countries on non-European card schemes like Visa and Mastercard. To address these challenges, the ECB initiated a CBDC exploration project in October 2021, but progress has been hindered by ongoing legislative processes. Witlox expressed concerns that delays could impede Europe's ability to develop the digital euro in a timely manner, but remains optimistic about Europe's position in the global CBDC landscape. Read more AI-generated news on: https://app.chaingpt.org/news

The European Central Bank is stressing the need for immediate action in creating a digital euro, cautioning that slow legislative progress could hinder Europe's competitiveness in central bank digital currencies (CBDCs). Evelien Witlox, the ECB's digital euro project manager, emphasized the importance of accelerating efforts as countries like the UK and China advance discussions on their own digital currencies. Witlox highlighted the lack of a EU-wide digital payment solution and the dependence of many eurozone countries on non-European card schemes like Visa and Mastercard. To address these challenges, the ECB initiated a CBDC exploration project in October 2021, but progress has been hindered by ongoing legislative processes. Witlox expressed concerns that delays could impede Europe's ability to develop the digital euro in a timely manner, but remains optimistic about Europe's position in the global CBDC landscape. Read more AI-generated news on: https://app.chaingpt.org/news

Yao Qian, the former head of China's central bank digital currency (CBDC) research project, has been expelled from the Chinese Communist Party and removed from his government position due to corruption allegations. Reports state that Qian misused his authority and neglected his duties of science and technology supervision. He is accused of favoring specific technology providers for personal gain and accepting bribes in the form of cryptocurrency, property, and luxury items. The exact extent of the corruption is undisclosed, but it is described as significant. Qian's case has been forwarded for legal action after being under investigation since April 2024. He played a key role in developing China's Digital Yuan before leaving the People's Bank of China in 2018. The digital yuan has seen increased adoption, with nearly $982 billion in transactions by June 2024 and expanding usage beyond mainland China, including in Hong Kong for retail payments and cross-border transactions. Read more AI-generated news on: https://app.chaingpt.org/news

Former head of China’s central bank digital currency (CBDC) research project, Yao Qian, has been expelled from the Chinese Communist Party and removed from his government position due to corruption allegations. He is accused of abusing his position, supporting specific technology service providers for personal gain, and accepting cryptocurrency, property, liquor, and dinners, as well as illegally borrowing money.

Qian’s case has been referred to local authorities for prosecution. Meanwhile, China’s digital yuan CBDC is attracting more real-world use cases, with almost $982 billion in transactions carried out by the end of June 2024. The digital yuan is being used in Hong Kong and for cross-border payments, including a recent cross-border crude oil transaction.

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<p>The post Corruption Scandal: China’s CBDC Researcher Ousted first appeared on CoinBuzzFeed.</p>

ECB urges faster digital euro rollout as global powers advance in CBDC development.

The digital euro CBDC project faces legislative hurdles while the UK and China push ahead.

Several banks voice concerns over costs as ECB plans privacy-focused payment solution.

The European Central Bank’s digital euro project manager, Evelien Witlox, has emphasized the urgent need to accelerate the development of Europe’s central bank digital currency (CBDC). Her statement to Euronews comes as global competitors advance their own digital currency initiatives.

“We are still at the forefront of the development [of a CBDC],” Witlox stated, highlighting concerns about falling behind other major economies. With the UK and China making major progress in their CBDC development, the ECB faces mounting pressure to maintain its competitive edge in the digital currency space.

Fragmentation of Payment Solutions

The urgency stems from the current fragmentation of payment solutions across the Eurozone. Notably, 13 of the 20 eurozone countries lack national card schemes, relying heavily on international providers like Visa and Mastercard. This dependency on foreign players, combined with declining cash usage and rising cryptocurrency adoption, has accelerated the need for a European digital payment solution.

Since its proposal in 2021, the digital euro project has progressed through several development phases. However, the legislative framework remains pending, with neither the Parliament nor the Council taking a position on the Commission’s proposal. “Discussions have progressed, and I can only reiterate the urgency to keep sufficient pace in this process,” Witlox emphasized, addressing the ongoing legislative process in Brussels.

Global Adoption of CBDCs

The ECB’s push comes as 134 countries, representing 98% of the global economy, explore CBDC implementation. Major economies like China have already launched pilot programs, while the UK advances its own digital currency research.

The ECB has addressed key stakeholder concerns regarding the digital euro’s implementation. The proposed framework includes no interest earnings on deposits, holding limits for financial stability, enhanced privacy features for offline transactions, competitive fees for merchants, and measures ensuring financial inclusion.

While no concrete deadline exists for the digital euro’s launch, the ECB continues to emphasize the importance of maintaining momentum in its development. The project manager also stated that banks and non-banks will be key players in the roll-out of their CBDC.

The post ECB’s Witlox Urges Swift Action on Digital Euro Development appeared first on CryptoTale.

Yao Qian, the former head of China's central bank digital currency (CBDC) research project, has been expelled from the Chinese Communist Party and removed from his government position due to corruption allegations. Reports state that Qian misused his authority and neglected his duties of science and technology supervision. He is accused of favoring specific technology providers for personal gain and accepting bribes in the form of cryptocurrency, property, and luxury items. The exact extent of the corruption is undisclosed, but it is described as significant. Qian's case has been forwarded for legal action after being under investigation since April 2024. He played a key role in developing China's Digital Yuan before leaving the People's Bank of China in 2018. The digital yuan has seen increased adoption, with nearly $982 billion in transactions by June 2024 and expanding usage beyond mainland China, including in Hong Kong for retail payments and cross-border transactions. Read more AI-generated news on: https://app.chaingpt.org/news

RBI Prioritizes Caution in e-Rupee Rollout

The Reserve Bank of India (RBI) is taking a measured approach to the development and rollout of the e-rupee, its Central Bank Digital Currency (CBDC), to address potential risks to financial stability. Since launching a pilot in December 2022, the e-rupee has seen moderate adoption, with 5 million users and 1 million transactions recorded so far. Despite these milestones, the digital currency lags far behind India’s widely popular Unified Payments Interface (UPI) in terms of usage and scalability.

 

RBI’s Cautious Approach

1. Concerns Over Financial Stability

RBI Deputy Governor T. Rabi Sankar has emphasized the importance of evaluating the long-term implications of the e-rupee. The central bank is wary of risks that could disrupt traditional financial systems, including:

Impact on Banks: Reduced deposit levels due to direct CBDC holdings.

Monetary Policy Challenges: Potential shifts in liquidity management.

Cybersecurity Risks: Ensuring robust defenses against digital threats.

2. Learning from the Pilot Phase

The pilot program has provided valuable insights into the operational challenges and user behavior associated with the e-rupee. Key findings include:

Limited adoption compared to UPI, which processes billions of transactions monthly.

Positive feedback on security but calls for offline capabilities to improve accessibility in remote areas.

 

Enhancements in Development

To increase the e-rupee’s appeal and usability, the RBI is working on:

1. Offline Transfers

Enables digital currency usage without internet access.

Critical for rural and underserved regions with limited connectivity.

2. Global Alignment

The RBI is closely monitoring international CBDC trends, ensuring India’s approach aligns with global standards and best practices.

3. Interoperability

Future updates may focus on integrating the e-rupee with existing digital payment systems like UPI to enhance adoption.

 

Adoption Challenges

Despite its potential, the e-rupee faces significant hurdles:

1. Competition from UPI

India’s Unified Payments Interface (UPI) is deeply entrenched in the market, offering instant and seamless payments.

UPI adoption is fueled by ease of use, incentives, and widespread merchant acceptance.

The e-rupee must offer distinct advantages to compete.

2. Public Awareness

Many users remain unaware of the e-rupee’s benefits or how it differs from existing payment options.

3. Technological Barriers

Scaling the CBDC to handle large transaction volumes without compromising security or performance remains a challenge.

 

What Sets the e-Rupee Apart?

Unlike UPI, which facilitates transactions between bank accounts, the e-rupee:

Functions as a direct liability of the RBI, akin to physical cash.

Eliminates intermediaries, offering instant settlement for peer-to-peer and merchant transactions.

This unique positioning could make the e-rupee a valuable addition to India’s digital economy, especially for cross-border payments and financial inclusion initiatives.

 

Global Trends in CBDCs

India is not alone in its cautious rollout of a digital currency. Major economies like China, the European Union, and the United States are also experimenting with CBDCs to modernize their financial systems.

Examples:

China’s Digital Yuan: Rapid trials but slow adoption beyond pilot regions.

European Union: Actively exploring a digital euro with a focus on privacy and security.

United States: Researching CBDCs but prioritizing regulatory clarity.

India’s balanced approach reflects a desire to learn from these global initiatives while tailoring the e-rupee to domestic needs.

 

FAQs About the e-Rupee

1. What is the e-rupee? The e-rupee is India’s Central Bank Digital Currency (CBDC), issued by the RBI, functioning as a digital version of physical cash.

2. How does the e-rupee differ from UPI? While UPI facilitates bank-to-bank transactions, the e-rupee is a direct liability of the RBI and offers instant settlement without intermediaries.

3. Why is the RBI proceeding cautiously? The RBI is prioritizing financial stability, ensuring the e-rupee’s rollout does not disrupt the banking system or pose security risks.

4. What enhancements are being developed for the e-rupee? Features like offline transfers, interoperability with UPI, and global standards alignment are in progress.

5. When will the e-rupee be widely available? The timeline depends on the success of pilot programs and regulatory approvals, but full-scale implementation is expected in the coming years.

 

Conclusion

The RBI’s cautious approach to the e-rupee rollout reflects a commitment to innovation balanced with financial stability. While adoption remains limited compared to UPI, ongoing enhancements and learnings from the pilot phase position the e-rupee as a cornerstone of India’s digital economy.

As India aligns its CBDC efforts with global trends, the e-rupee has the potential to redefine payments, boost financial inclusion, and maintain the country’s leadership in fintech innovation.

For more insights into India’s digital economy, explore our guide on How CBDCs Are Shaping the Future of Finance.

Experts believe it could enhance regulatory clarity, mitigate risks, and position the U.S. as a leader in the digital financial era.

The European Central Bank is urging faster action on the digital euro as legislative delays risk hindering progress amid growing global competition.

The digital euro project is facing delays in the European Union, with the European Central Bank urging faster action to prevent Europe from falling behind global competitors.

Evelien Witlox, the ECB’s project manager for the digital euro, told Euronews in an interview that Europe should speed up with the development to avoid falling behind, as global competitors like the U.K. and China are also exploring central bank digital currencies.

Thus far, there is no pan-European digital payment solution as 13 of the 20 countries in the eurozone lack a national card scheme, relying instead on international players like Visa and Mastercard, the report notes. Witlox noted that the European market remains fragmented, with “the ones that come closest to covering the whole of Europe are non-European.”

You might also like: Brazil’s central bank unveils phase 2 of its CBDC pilot

To address this, the ECB launched a CBDC exploration project in October 2021. However, before the digital euro can move forward, the European Parliament and Council must finalize the legal framework—a process that has yet to be completed nearly 17 months after the European Commission’s proposal. This delay has raised concerns within the ECB, Witlox noted.

Although discussions on the digital euro have made progress, Witlox reiterated the need for urgency to keep “sufficient pace in this process so that we can ensure that the digital euro will be there when we really need it.” Although there is no set timeline for the digital euro’s launch, Witlox remains optimistic, stressing that Europe is still “at the forefront of the development [of a CBDC].”

Read more: Norway’s financial task force urges cautious approach to CBDC: report

Coinspeaker ECB Urges Faster Progress on Digital Euro to Maintain Global Leadership

The European Central Bank (ECB) has been urged to prioritize the urgency of developing the digital euro, as there are concerns that Europe could fall behind global competitors. The digital euro is a digital version of the euro currency that could serve as a unified means of payment across the 20 countries in the eurozone.

Evelien Witlox, project manager at the ECB, emphasized in an interview with Euronews the need to accelerate the development of the digital euro and establish more unified payment solutions within Europe. She noted that the most comprehensive payment systems currently available across Europe are controlled by companies outside the EU.

As of now, Europe lacks a pan-European digital payment solution. Currently, 13 of the 20 eurozone nations lack national card schemes, depending instead on global giants such as Visa and Mastercard. With cash use dwindling and cryptocurrencies gaining traction, this dependency has fueled the ECB’s pursuit of a CBDC.

Legal Framework and Accessibility Plans in Progress

The ECB first introduced the digital euro concept in October 2021. However, nearly 17 months after the European Commission proposed a legal framework, progress remains incomplete. This legislative delay has hindered the project’s advancement.

Witlox, however, maintained that discussions are moving well. She emphasized the importance of maintaining momentum in the legislative process to ensure that the digital euro will be fully ready when it is most needed. She said:

“Discussions have progressed and I can only reiterate the urgency to keep sufficient pace in this process so that we can ensure that the digital euro will be there when we really need it”

Balancing Financial Stability and Innovation in CBDC Development

European banks are scrutinizing the potential impact of the digital euro on the financial system, including effects on bank deposits and infrastructure costs. The digital euro is not intended to serve as a savings tool and will not earn interest. It will also feature a holding limit, though the exact cap is yet to be determined. The ECB aims to balance giving people access to central bank money and maintaining financial stability.

It was further stated that within the draft legislation, some provisions have also been included to ensure the digital euro is accessible to everyone, including a physical card, an offline option, and institutions to help users top up their cards. The ECB project manager suggested that in countries such as Italy, these institutions could serve as post offices, which can be open to everyone who needs assistance in opening a digital euro account or using it.

Witlox further affirmed that the ECB is still taking the lead in the development of CBDC, and it would be sad if they failed to take up the opportunity to design properly what they believe a retail CBDC should be.

“We are still at the forefront of the development [of a CBDC], it would indeed be a pity if we lose this opportunity to shape what we think a retail CBDC should look like,” she said.

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ECB Urges Faster Progress on Digital Euro to Maintain Global Leadership

The Central Bank of Brazil is working with Banco Inter, Microsoft Brazil, 7COMm, and Chainlink to develop a central bank digital currency (CBDC). The purpose of this partnership is to support trade finance solutions and a Brazilian DREX pilot program in the second stage. The focus of this phase is automating the cross-border settlement of commodity-related transactions using blockchain technology and oracles.

This initiative tokenizes an electronic waybill (eBOL) and integrates supply chain data to automate payments. The pilot project aims to demonstrate how blockchain-based trade finance enables prepayment (Delivery versus Payment, DvP) and Payment versus Payment – use of PvP mechanisms. The Brazilian rollout of the DREX platform is led by Banco Inter, while Microsoft Brazil and 7COMm provide cloud services and technical support.

Chainlink’s CCIP infrastructure facilitates cross-chain transfers for DREX and other CBDCs. By using this technology, they aim to expand market access and strengthen Brazil’s economic position while broadening access to smart financial services.

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<p>The post Brazil’s Central Bank Teaming Up to Develop CBDC Framework first appeared on CoinBuzzFeed.</p>

The Central Bank of Brazil (BCB) is working with Banco Inter, Microsoft’s Brazilian subsidiary, 7COMm, and Chainlink to develop its central bank digital currency (CBDC) framework. The goal is to support trade finance solutions and a Brazilian DREX pilot program. In the second stage, they will focus on automating cross-border settlement of commodity-related transactions using blockchain technology and oracles.

The test will use the Chainlink Cross-Chain Interoperability Protocol (CCIP) to enable seamless interactions between the Brazilian DREX platform and foreign central banks. The pilot project aims to demonstrate how blockchain-based trade finance enables advance payment (Delivery versus Payment, DvP) and Payment versus Payment (PvP) mechanisms, which can improve efficiency, security, and transparency in the global supply chain.

The BCB aims to expand market access and strengthen Brazil’s economic position with this initiative.

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<p>The post Brazil’s CBDC Partnership Aims to Revolutionize Trade Finance and Supply Chain Management first appeared on CoinBuzzFeed.</p>

The Reserve Bank of India (RBI) is taking a careful stance on the nationwide launch of its Central Bank Digital Currency (CBDC), the e-rupee. Deputy Governor T. Rabi Sankar stated that the bank is not rushing to introduce it, prioritizing financial stability and a thorough understanding of its potential impacts. The e-rupee pilot, initiated in December 2022, has shown gradual progress with over 5 million users and around 1 million retail transactions by mid-2024. Despite this, the RBI is focused on evaluating long-term effects before expanding further. Concerns about CBDCs disrupting traditional banking have led to controlled experiments with limited rollout. Local banks like ICICI Bank and State Bank of India are offering incentives for e-rupee adoption. India's central bank aims to strengthen the financial system with the e-rupee while closely monitoring global CBDC developments. Read more AI-generated news on: https://app.chaingpt.org/news

The Reserve Bank of India (RBI) is taking a careful stance on the nationwide launch of its Central Bank Digital Currency (CBDC), the e-rupee. Deputy Governor T. Rabi Sankar stated that the bank is not rushing to introduce it, prioritizing financial stability and a thorough understanding of its potential impacts. The e-rupee pilot, initiated in December 2022, has shown gradual progress with over 5 million users and around 1 million retail transactions by mid-2024. Despite this, the RBI is focused on evaluating long-term effects before expanding further. Concerns about CBDCs disrupting traditional banking have led to controlled experiments with limited rollout. Local banks like ICICI Bank and State Bank of India are offering incentives for e-rupee adoption. India's central bank aims to strengthen the financial system with the e-rupee while closely monitoring global CBDC developments. Read more AI-generated news on: https://app.chaingpt.org/news

The Central Bank of Brazil (BCB) has advanced its CBDC initiative, selected financial services firm Banco Inter, tech giants Microsoft Brazil, 7COMm, and smart contract platform Chainlink to develop a new trade finance system based on blockchain technology. This is a part of the second phase of the Brazil Digital Real (DREX) pilot program. The initiative will also provide supply chain finance and improve trade finance processing as well as supply chain management. The model seeks to improve the efficiency of the cross border, cross-platform and cross-currency agricultural commodity transactions.

Blockchain and oracles will be applied to perform the settlement of the suggested solution’s process. This will tokenize the Electronic Bill of Lading (eBoL) and, applying supply chain data, it will disburse payments to exporters during transit. The project is intended to improve the functioning, security, and productivity of the international trade systems.

CBDC and Cross-Border Transactions

Chainlink’s Cross-Chain Interoperability Protocol (CCIP) will be the main part of the project. This protocol is expected to assist Brazil’s DREX in integrating with foreign CBDCs, thereby facilitating efficient cross-border business. This interoperability will improve and facilitate faster and more secure international trade. It will also enable the conclusion of transactions in different currencies and on different blockchains.

Joao Bruno Grossi, Head of Emerging Technologies at Banco Inter stated:

“Banco Inter sees Phase 2 of the DREX CBDC project as an exciting moment for Brazil. We see collaborating in this project with technology leaders like Microsoft and Chainlink Labs as a transformative opportunity to expand market reach and improve the health of the Brazilian market.”

The pilot will demonstrate that blockchain can improve the Delivery versus Payment (DvP) and Payment versus Payment (PvP). These practices are useful in enhancing trade finance. DvP is inevitable when goods are delivered so that payments are made after the right time has been reached. In PvP, payment is made when both the parties have provided what the other party agreed to provide.

Angela Walker, Global Head of Banking and Capital Markets at Chainlink Labs emphasized the role of CCIP. She stated:

“Chainlink CCIP is essential to enabling secure cross-border, cross-currency, and cross-chain transactions and will help showcase what tokenized assets can do at scale for this key CBDC use case in Brazil.”

Microsoft’s Blockchain Support

Microsoft, which has been supporting blockchain for years, will offer the cloud solution for the DREX project. ”Microsoft is pleased to be working with the Central Bank of Brazil, Banco Inter, 7COMm and Chainlink Labs on Brazil’s DREX digital currency,” said Aragao, Innovation Specialist for Financial Services at Microsoft. For DREXs development, Microsoft provides the technology that is useful for the improvement of inclusive and quality financial services. This partnership will also help Brazil grow economically by integrating blockchain.

7COMm, being a solutions provider, will concentrate on technical support. Sergio Yamani, Chief Innovation and New Business Development Officer at 7COMm, stated that:

“The advent of CBDCs, the development of blockchain interoperability protocols such as CCIP, and the use of CBDCs for cross-border payments enable a new generation of blockchain trade finance solutions. We are confident that we will deliver a solution with a well-designed and thoughtful value proposition that solves real, everyday business problems.”

Chainlink’s Security Infrastructure

Chainlink Labs is one the biggest companies in the sphere of blockchain technology and is also the participant of the project. This will enable secure data and cross-chain communication which will be a major boost to DREX’s expansion. The firm has helped complete over $16 trillion in transactions through blockchain technology. The Chainlink solutions will enable DREX to engage other blockchains, meaning that DREX will be capable of harnessing the full potential of digital currency. 

The DREX is a financial system benchmarked programme that will transform trade finance in Brazil. Thus, the use of automated payment settlements will increase the effectiveness of the global supply chain. This partnership between the Central Bank of Brazil, Banco Inter, Microsoft, 7COMm, and Chainlink is the future for the world business.

Chainlink, a prominent platform for on-chain finance, has recently announced an exclusive development for the banking sector. As per Chainlink, the Brazilian Central Bank is using a joint CBDC endeavor that takes into account contributions from itself, Banco Inter, 7Comm, and Microsoft. The platform took to its official social media account to disclose this development.

We’re excited to announce that Brazil’s central bank @BancoCentralBR is using Chainlink in its CBDC project, alongside @Microsoft (@msPartner), @interbr, & 7COMm.CCIP enables cross-currency, cross-border, cross-chain transactions to be settled securelyhttps://t.co/7aBGtHh3mt

— Chainlink (@chainlink) November 19, 2024

Chainlink, Banco Inter, 7Comm, and Microsoft Join to Offer a CBDC Project to the Brazilian Central Bank

Chainlink mentioned that its joint CBDC project in collaboration with Microsoft, 7Comm, and Banco Inter is serving the Central Bank of Brazil. It focuses on developing a solution for trade finance as included in the 2nd phase of Brazil’s DREX pilot project. DREX is the digital currency of the country. The respective solution uses blockchain technology as well as oracles for the automatic management of the supply chain. It also endeavors to refine the trade finance procedures. The objective is to execute commodity transfers’ automated settlement across platforms, across borders, and through diverse currencies.

The Cross-Chain Interoperability Protocol of Chainlink will reportedly offer interoperability linking Brazil’s Central Bank’s DREX and the foreign central banks. This guarantees that transfers possess compatibility and efficient settlement. The pilot will include the on-chain tokenization of an Electronic Bill of Lading. It will additionally utilize supply chain statistics to ignite deliver disbursements to exporters during the shipping procedure.

The solution will display the significant role of blockchain-based trade finance in unlocking Payment versus Payment and Delivery versus Payment. It will guarantee enhanced efficiency in the worldwide supply chain, and transparency and security for the agricultural commodities’ international trade.

Chainlink CCIP is set to provide valuable infrastructure to facilitate DREX and the rest of the CBDCs and tokenized assets. For this purpose, it is going to increase liquidity by leveraging streamlined token transactions across diverse blockchain networks. The respective approach can assist broaden market access by letting enterprises reach a wider blockchain ecosystem.

The Initiative Denotes Blockchain Adoption and Chainlink CCIP’s Potential to Revolutionize Trade Finance

According to Angela Walker, Chainlink Labs’ Global Head of Banking and Capital Markets, the platform looks forward to working with the Brazilian central bank, Microsoft, and Bank Inter. This would reportedly demonstrate blockchain adoption and Chainlink’s CCIP’s potential to revolutionize trade finance.

Coinspeaker India Advances Digital Payment Systems and CBDC Adoption, No Rush for Public Rollout

India is advancing its mobile payment systems and cross-border payment links with several countries. According to Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar, India already has an arrangement with Sri Lanka and is working on a similar partnership with the UAE and other nearby countries. He further mentioned that the South Asian country has forged agreements with Bhutan and Nepal. He said:

“We have one arrangement with Sri Lanka. We are working out with other countries like UAE and some neighboring countries as well.”

The RBI is determined to create an easy digital payment system for people in India. It has also teamed up with other central banks in Asia to create a platform for cross-border payments. This platform will allow payments to be confirmed right away. With this partnership, payments between countries could become faster and easier, further boosting trade and remittances.

India’s digital currency, called the e-rupee, was launched in 2022. It is a digital version of the country’s regular money. The South Asian nation is one of the few countries to have its own digital currency, but it is still being tested. The central bank discovered that the adoption rate of the e-rupee has been slow, as it had only reached 1 million retail transactions by the middle of this year.

The RBI is also testing different parts of the digital currency, like security, and looking into how it might affect bank deposits and money management.

RBI’s Cautious Approach to Central Bank Digital Currency

RBI Deputy Governor Michael Debabrata Patra raised concerns about how CBDCs might affect the banking system’s stability. He noted that when financial crises hit, people might view CBDCs as safer than traditional bank deposits and shift their funds into them. This could weaken banks by reducing their deposits. He also mentioned that the effects of CBDCs on key systems like bank deposits and deposit insurance are still uncertain, adding to the complexity of implementing them.

However, based on a Bloomberg report, the RBI perceives CBDCs as the future currency and an economical approach for cross-border payments, commercial transactions, and overseas remittances. Governor Shaktikanta Das has also proposed technical support to countries seeking common international standards for cross-border payments.

Deputy Governor Sankar has made it clear that the country is in no rush to make its digital currency available to the wider public. He maintained that once they have a clearer picture of what the outcome of the CBDC will be, then they will make it public. Thus, as of now, there is no date on the calendar for it.

“We are in no hurry to roll it out immediately, once we have some visibility of what the outcome or impact will be, we’ll roll it out. We don’t keep a specific timeline for that,” he claimed.

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India Advances Digital Payment Systems and CBDC Adoption, No Rush for Public Rollout

CBDC architect Yao Qian was expelled from CPC over cryptocurrency bribery charges.

Former CSRC director Yao used digital currencies for personal gain and influence.

Yao faces criminal prosecution, asset seizure, and removal from public office.

Yao Qian, the architect of China’s central bank digital currency (CBDC), has been expelled from the Communist Party of China (CPC). He has been charged with bribery and faces severe consequences involving cryptocurrency. Once hailed as the country’s biggest voice for digital currency, Yao has become a fallen icon in the tech and finance industries.

Investigating Abuse of Power

Yao, a former director at the China Securities Regulatory Commission (CSRC), is being investigated for severe violations of discipline and law. According to a report from Wednesday, he was indicted for abusing his position to assist cryptocurrency service providers for personal gain. This involved offering bribes in the form of digital currencies.

According to China’s Discipline Inspection and Supervision Group, Yao failed to perform his duties as assigned. He misused the power to lay down policies, influence business dealings, and provide himself with special favors. Yao was accused of using virtual currency to bribe or pay for influence. He also took costly gifts, including Maotai liquor, and enjoyed expensive meals at hotels. 

The investigation found that Yao’s actions had a severe effect on the Party’s credibility. Despite previous warnings, Yao continued his misconduct as he had during the 18th, 19th, and 20th National Congresses. He was also charged with violating the party’s political discipline and integrity regulations and accused of bribery.

Crypto’s Impact on Politics

The Party Committee of the CSRC has decided to expel Yao Qian from the party’s membership. The Central Commission for Discipline Inspection and the National Supervisory Commission also decided to expel him from public office. Additionally, they ordered the confiscation of his illicit assets. 

This case illustrates the current risks of the relationship between cryptos and the political sphere. It focuses on the issue of digital currencies in the context of the Chinese regulatory system.

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Yao Qian, the former head of China’s Central Bank Digital Currency (CBDC) Institute, has been expelled from the Chinese Communist Party for alleged corruption related to crypto. According to the announcement, China’s top anti-corruption agency revealed several accusations involving breaking rules and laws.

Yao Qian Abused His Power 

Yao was accused of misusing his power while in office. He allegedly used his position to help certain technology service providers for his benefit, claiming to be a financial technology expert while promoting their interests. Authorities said his actions harmed public trust and disrupted the development of the financial technology sector.

Furthermore, Yao allegedly took part in “power-for-money” deals using cryptocurrency. This is notable because China firmly opposes the risky use of digital assets. As such, Yao has been sent to prosecutors for further investigation and possible legal action. Meanwhile, Yao’s dismissal and referral to prosecutors highlight Beijing’s strict policy against corruption, particularly in sensitive areas like financial technology and central banking.

China Takes Decisive Action Against Crypto Corruption

In February, China’s Supreme People’s Procuratorate (SPP), the country’s highest prosecutorial authority, addressed the escalating issues of cybercrimes, particularly those involving blockchain and metaverse projects. The SPP’s action comes in response to a surge in online fraud, cyber violence, and personal information infringement.

Zhang Xiaojin, director of the Fourth Procuratorate of the SPP, cautioned citizens and participants in the digital asset space about investment scams in the local crypto economy. Xiaojin flagged the emergence of new cybercrimes leveraging the metaverse, blockchain, and binary options platforms. 

Recall that in 2022, authorities apprehended a criminal syndicate suspected of exploiting the CBDC in a money laundering scheme amounting to nearly 200 million yuan ($27.4 million).

China’s Crackdown on Digital Assets

China’s strict enforcement against digital asset-related offenses contrasts with Hong Kong’s adoption of crypto-friendly regulations designed to standardize the digital asset ecosystem. The People’s Bank of China (PBoC) addressed cryptocurrency regulation and decentralized finance (DeFi) in its financial stability report. 

The PBoC emphasized the importance of global regulatory coordination in overseeing the industry. In 2021, the PBoC announced stringent measures, including a ban on virtually all crypto transactions and mining activities. 

This was done to curb crypto adoption in mainland China despite the country remaining a significant crypto-mining hub.

The post Former PBoC Exec Punished Over Crypto Corruption Charges appeared first on TheCoinrise.com.