Similar to how automotive laws, such as speed limits and turn signals, have been designed to protect against dangerous drivers and not dangerous cars, legacy banking regulations seek to regulate bankers, not banks. Blockchain technology and decentralised finance are delivering banking services through "self-driving banks", and regulators should revisit what a regulatory framework would look like in this new world.
Read MoreThe Office of the Comptroller of the Currency of the United States has announced that national banks and federal savings associations may participate in independent node verification networks and use stablecoins to perform bank-permissible functions. As a result, Cayman-based banks may be afforded the opportunity to access a new, open, global payment infrastructure system that is active and accessible today.
Read MoreThe STABLE act has been recently introduced with a focus to ban any stablecoin that is not issued by a chartered bank. This bill would target dollar-denominated liabilities rather than non-bank dollar-denominated liabilities, such as Apple Pay, Google Pay, Paypal, Moneygram or Western Union, and may have unintended far reaching consequences for participants on a network with dollar-denominated stablecoins.
Read MoreIn a bid to level the playing field, the OCC has proposed a new rule that will provide fair access to financial services. This new rule would prevent banks from blacklisting legal industries, including oil and gas and cryptocurrency businesses.
Read MoreThe largest financial institution in Belarus, a member country of the FATF-supported Eurasian Group (EAG), is offering citizens of Belarus and Russia to buy, sell and trade Bitcoin at optimal pricing. The bank plans to continue collaboration with Whitebird to expand these crytpocurrency services to additional countries.
Read MoreA group of central banks have joined forces with the Bank for International Settlements (BIS) to explore the general use for Central Bank Digital Currencies (CBDC). Most public policy objectives amongst central banks have remained unchanged for the last decade and by engaging in the exploration of CBDCs, these organizations are forced to innovate and evolve.
Read MoreThe Central Bank of the Bahamas (CBOB) has launched the world’s first central bank backed digital currency (CBDC). The “Sand Dollar” was launched on October 20th and will use a network of intermediaries referred to as authorized financial institutions (AFIs) to issue the digital currency to the public.
Read MoreThe European Central Bank has recently released a report that outlines the practicality benefits of issuing a digital version of the euro. This report also explores the probable risks that this digital euro could present to the current financial system.
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