Find out the latest updates and trends in the world of digital assets through our #SDdigest.
The Managing Director and Chairperson of the International Monetary Fund (IMF), Christine Lagarde, has called on central banks around the world to consider issuing digital currencies. Lagarde said:
Second-largest US bank wins patent for crypto storage system. Bank of America continues to lead the way in the acquisition and filing of blockchain technology patents, and, lately having secured its latest patent in the blockchain and crypto space, one for “tamper-responsive” remote storage of private keys. Now Bank of America can store deposits for big companies.
The advantage is clear. Your payment would be immediate, safe, cheap and potentially semi-anonymous… And central banks would retain a sure footing in payments.
China uses blockchain technology to keep track of offenders on community correction system. The city of Foshan in southern China’s Guangdong province on Monday announced the launch of the nation’s first blockchain-based community correction service system to keep track of offenders in its Chancheng district in real time. The system allows local police, prosecutors, and court officials to share their real-time data and to coordinate their services to conduct better supervision on and service for the offenders.
Singapore’s central bank and the country’s primary stock exchange have successfully developed an automated method for rapid settlements of tokenized assets. The government of Singapore announced the successful development of a Delivery versus Payment (DvP) mechanism – powered by smart contracts – for settlement of tokenized assets over different blockchain platforms. Sopnendu Mohanty, fintech chief at the Monetary Authority of Singapore, the country’s defacto central bank, stated:
French lawmakers want to give Bitcoin investors a tax cut. France’s lower house of parliament has backed a proposed plan from its finance commission which will effectively bring the taxes on bitcoin gains in line with other capital gains taxes in the country. At present, bitcoin sales are taxed about 20% more than traditional capital gains or sales of stocks and other securities.
This project has demonstrated the value of blockchain technology and the benefits it can bring to the financial industry in the short to medium term. The concept of asset tokenisation, as wel as other learnings gleaned from this project, can potentially be applied to a broad spectrum of the economy, creating a whole new world of opportunities.
The reserve banks of Canada, Singapore and the United Kingdom have singled out central bank digital currencies as being one of the solutions that can be implemented in order to solve the challenges encountered when making cross-border payments. According to their report, CBDCs offer various advantages including 24-hour availability, anonymity and eliminating counterparty credit risk for participants.
Have a nice and productive week everyone! See you next Monday!