SETL provides a Regulated Liability Network (RLN) ledger framework for interoperable financial transactions.

SETL

SETL is an initiative to deploy a multi-asset, multi-currency institutional payment and settlements infrastructure based on blockchain technology. The SETL system will enable market participants to move cash and assets directly between each other, facilitating the immediate and final settlement of market transactions. The SETL system maintains a permissioned distributed ledger of ownership and transaction records, simplifying the process of matching, settlement, custody, registration and transaction reporting.

Credit Agricole CIB

Deloitte

The European Central Bank (ECB) has invited participants to a workshop focused on the future of business-to-business (B2B) payments, exploring whether corporates have a specific need for central bank digital currencies (CBDCs). While the ECB's digital euro project has so far focused on personal and government payments, and its DLT-based initiatives target institutional settlements, the business sector remains underexplored. The workshop will discuss topics such as holding limits on the digital euro, the potential use of Germany’s Commercial Bank Money Token (CBMT), and stablecoins in corporate settings. The ECB aims to understand why current commercial bank money might not meet corporate digital payment needs and whether there is a need for direct access to central bank money. The workshop invites representatives from corporates, banks, and payment providers to apply by September 13.

Many innovative #payment services failed without consumer adoption. Although many papers discuss #CBDC strategies, understanding consumer attitudes towards a #DigitalPound remains under-researched. Our recent report with The University of Manchester aims to fill this gap and identify areas for further investigation 👉 https://buff.ly/4cC222j
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#DigitalCurrencies #FinTech #Research

The Bank of England has published a new discussion paper entitled “The Bank of England’s Approach to Innovation in Money and Payments,” which outlines its strategy for adapting to technological changes in the financial landscape. This paper addresses the opportunities and risks associated with innovations in money and payments, aiming to maintain trust and confidence in the value of money. Download the full paper here 👉 https://buff.ly/4c9N0jh 
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#DigitalCurrencies #CBDC #Stablecoins #Blockchain #DLT #RTGS #Payments #FCA

The Reserve Bank of India (RBI) has highlighted the importance for deposit insurers to monitor the impact of central bank digital currencies (CBDCs) on traditional bank deposits. Michael Debabrata Patra, RBI's deputy governor, noted that the replacement of bank deposits by CBDCs could affect deposit insurance, especially during financial crises, where CBDCs might be seen as safer than bank deposits, increasing the risk of bank runs. Patra emphasized the need for deposit insurers to stay informed about CBDC developments, as these digital currencies could significantly influence the role and operations of deposit insurers globally.

He also pointed out that CBDCs offer advantages such as eliminating settlement risks and providing real-time, cost-effective global payments. India's pilot programs for wholesale and retail CBDCs began in late 2022. However, the full impact of CBDCs on deposit insurance is still uncertain and will depend on the specific design and implementation of CBDCs in different jurisdictions.

Jamaica launched its first central bank digital currency (CBDC), JAM-DEX, in 2021, with a full rollout in 2022. However, despite plans for all banks to offer CBDC wallets, only the National Commercial Bank (NCB) Jamaica currently does so. NCB's CEO, Bruce Bowen, expressed skepticism about the project, noting that while their Lynk wallet is popular, the CBDC feature is not widely used due to the complexity involved.

Although the government introduced various incentives to promote JAM-DEX, such as giveaways and cashback offers, adoption has been slow. By the end of 2023, there were 260,000 consumer wallets and J$257 million ($1.64m) in circulation, but merchant adoption remains low, especially among larger retailers. The central bank is working to upgrade Point of Sale (PoS) machines to support JAM-DEX, but the overall momentum is weak, particularly as NCB, the only wallet provider, seems hesitant about the project's future.

The Bangko Sentral ng Pilipinas (BSP) is set to complete its Central Bank Digital Currency (CBDC) pilot, "Project Agila," by the end of the year. The pilot aims to explore the use of digital currency in enhancing the Philippines' large-value payment system, particularly for inter-institutional fund transfers during off-hours.

Project Agila will utilize Hyperledger Fabric, a technology known for hosting smart contracts, to manage and execute digital transactions. The BSP plans to issue wholesale CBDCs to commercial banks for settling interbank payments and cross-border transactions. While retail CBDCs were considered, concerns about regulatory challenges and potential risks have kept the focus on wholesale applications.

The push towards digital currency is driven by the global decline in cash usage, with digital transactions becoming the norm. CBDCs offer benefits like reduced costs and improved payment efficiency. However, challenges remain, including the complexity of CBDCs compared to physical money and the need for significant processing power. Despite these challenges, the BSP's efforts are part of a broader global trend, as central banks worldwide explore various digital currency models to adapt to changing financial landscapes.

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