Connect with us


SWIFT Sees Positive Outcomes From Pilot Tests



Central Bank Digital Currencies or CBDCs developments continue to run in full swing. Of late, renowned banking institutions saw “clear potential and value” in SWIFT’s experimental CBDC Connector pilot tests.

Central Bank Digital Currencies have the potential to offer several benefits to the financial system. Even the economy as a whole. Regions collaborating with banking institutions from China to Russia to other developed nations have taken significant steps under this cohort. In fact, according to the Atlantic Council CBDC tracker, 114 countries, representing over 95 percent of global GDP, are exploring it. 

Eleven countries, including Nigeria and the Bahamas, have already launched their iterations.

CBDC Status Check Source: Atlantic Council
CBDC Status Check Source: Atlantic Council

In the ongoing year, over 20 countries will take significant steps towards piloting it. Australia, Thailand, Brazil, India, South Korea, and Russia intend to continue or begin pilot testing in 2023. The ECB is also likely to start a pilot next year.

CBDC Benefits

Some potential benefits of CBDCs explain different geography implementing routes to welcome it. 

Some of the benefits include: 

  1. Increased efficiency and speed of payments: CBDCs can make payments faster, cheaper, and more secure than traditional payment systems. This could boost economic activity and productivity.
  2. Financial inclusion: CBDCs can improve financial inclusion by providing access to banking services to the unbanked and underbanked populations. CBDCs can be accessed by anyone with a smartphone, even without a traditional bank account.
  3. Reduced transaction costs: CBDCs can reduce transaction costs for individuals and businesses, leading to cost savings and increased competitiveness.
  4. Improved monetary policy: CBDCs can enhance monetary policy by allowing central banks to implement and control monetary policy more. This can result in increased stability of the financial system and the economy.
  5. Combating illicit activities: CBDCs can potentially help combat illegal activities such as money laundering and terrorism financing by providing greater transparency and traceability of transactions.

Given these potential benefits, it is unsurprising that many central banks worldwide are actively researching and experimenting with CBDCs. 

Positive Momentum for CBDCs in 2023

Unsurprisingly, financial institutions are working rapidly to implement/project utilities to CBDCs. Be it retail or wholesale CBDC category. This is also evident in a press release shared with BeInCrypto. Herein, the bank messaging platform Society for Worldwide Interbank Financial Telecommunications, or SWIFT, gave an update on the situation. 

Per the report, 18 central and commercial banks found “clear potential and value” in the API-based CBDC connector after a comprehensive review. Consequently, it witnessed positive results in its pilot test linking different central bank digital currencies. The summary comes after nearly 5,000 CBDC-to-CBDC and CBDC-to-fiat simulations over 12 weeks. 

As a result, ensuring that CBDC can be used for cross-border payments. In addition, SWIFT plans to run a second phase of its CBDC sandbox. Further, developing its “CBDC interlinking solution into a beta version for payments with enhanced atomicity.”

SWIFT CBDC connector
SWIFT CBDC connector Source: SWIFT

“Central and commercial bank participants expressed strong support for the solution’s continued development, noting that it enabled seamless exchange of CBDCs, even those built on different platforms.” 

Participants include the Royal Bank of Canada, Banque de France, Société Générale, BNP Paribas, Monetary Authority of Singapore, HSBC, Deutsche Bundesbank, NatWest, and more. According to a recent OMFIF Digital Monetary Institute survey that was shared with BeInCrypto, 24% of central banks will introduce a digital currency within the next couple of years.

Scenarios Around the Development

While the foundation is laid out, some issues might still exist. For instance, interoperability is critical for developing CBDCs and the financial industry. Interoperability refers to the ability of different systems, platforms, and applications to work together seamlessly without any compatibility issues or barriers.

In this context, interoperability is essential because it allows for the exchange of digital currencies across different platforms and networks. This means that users can seamlessly transfer funds between other wallets, payment systems, and even across different CBDCs issued by various central banks.

The lack of interoperability could result in silos of digital currencies, where users are limited to transacting within a specific network or platform. This would hinder the potential benefits such as faster and cheaper payments, financial inclusion, and enhanced security.

Lewis Sun, global head of domestic and emerging payments at HSBC, told BeInCrypto:

“Interoperability is key to realizing the potential of CBDCs to deliver real-time cross-border payments. While interest in CBDCs is growing, so is the risk of fragmentation as a widening range of technologies and standards is being experimented with.”

Digital Currencies May Lack a Key Ingredient

It is essential to note that these also pose certain risks and challenges, such as privacy concerns, cybersecurity risks, and potential disruption to the existing financial system. Therefore, careful consideration and analysis are necessary before implementing CBDCs. Nick Anthony, a policy analyst at the Cato Institute, regarding the ongoing situation commented: 

“A CBDC could undermine both the foundation and future of financial markets by reducing credit availability, disintermediating banks, and challenging the rise of cryptocurrency.” 

He further called it ‘the single largest assault’ on financial privacy since establishing the Bank Secrecy Act and the third-party doctrine. Remember, these digital forms of traditional currencies are issued and backed by central banks. While digital currencies have the potential to bring about many benefits, they also come with several potential disadvantages. 

Concerns Around CBDC Innovation

Here are some of the main disadvantages of CBDCs:

  1. Security Risks: CBDCs could be vulnerable to security risks such as cyber-attacks, hacking, and theft. These risks could lead to the loss of funds for individuals and businesses and undermine the financial system’s stability.
  2. Privacy Concerns: CBDCs could also raise privacy concerns, as central banks would have access to detailed information about all transactions. This could compromise the privacy of individuals and businesses and raise concerns about government surveillance.
  3. Disintermediation of Banks: CBDCs could decrease demand for traditional bank deposits, as individuals and businesses could hold their funds directly with the central bank. This could undermine the role of banks in the financial system and lead to a concentration of power in the hands of central banks.
  4. Economic Disruption: CBDCs could also cause economic disruption, as they could undermine the profitability of banks and other financial institutions. This could lead to a contraction of credit and a reduction in economic activity.
  5. Technical Challenges: Implementing CBDCs could also pose technical challenges, as it would require significant investment in technology infrastructure and the development of new regulatory frameworks.
  6. Adoption Challenges: CBDCs could face challenges in adoption, particularly in countries where cash is still widely used and where there is limited access to digital technologies. This could exacerbate existing inequalities and exclude certain groups from the financial system.

It’s worth noting that some of these disadvantages are still speculative, and much will depend on the design and implementation. However, policymakers and stakeholders must consider these potential risks as they progress with such initiatives.


All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

Source link

We only source and collect valueable knowledge and information and do display it for public good (under the freedom of information act)

All image + text copyrights belong to their respectful owner, we do NOT claim any rights over those.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


e-Naira Sees Increased Adoption Amid Cash Storage




Nigerians are increasingly using digital currency for transactions due to banknote storage, driving e-Naira’s adoption months after its debut.

According to recent reports, eNaira transactions increased by 63% in 2023 to 22 billion naira (~$47.7 million).

e-Naira Gets a Push After 18 Months

The e-Naira launched in October 2021 after the website for Nigeria’s central bank’s digital currency went live in September. Since then, approximately 13 million users have signed up for e-wallets, according to the report. Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), said it is a more than 12-fold rise since its October launch. 

The official stated,

“We have seen good progress in the adoption of the eNaira. We are happy that as we try to move more and more towards financial inclusion, and get people away from being excluded in the financial system, the naira remains one of the very portable options for all to adopt.”

After a sluggish start, e-Naira usage appears to finally be gaining steam in the country. Data indicated that adoption levels remained modest in the fourth quarter of 2022. However, Nigerians have been subject to a cash withdrawal cap since January. The government’s demonetization operation to replace currency notes last year has reportedly left ATMs dry. Additionally, restrictions on over-the-counter cash withdrawals have also pushed people online.

The governor claims that after efforts to reduce access liquidity, the amount of physical money in circulation decreased to about 1 trillion naira from 3.2 trillion naira in September.

According to Emefiele, about 3.4 billion of the more than 10 billion minted digital e-naira is in circulation. 

He also credited the government for using eNaira for welfare programs. He explained that the increased adoption of the currency is due to the opening of 4 million new e-wallets by scheme beneficiaries. 

“The eNaira has emerged as the electronic payment channel of choice for financial inclusion and executing social interventions,” the governor said.

CBDCs Part of a Global Conversation

The Central Bank of the United Arab Emirates (CBUAE) is closer to launching a digital dirham as it recently introduced the central bank digital currency (CBDC) strategy.

Gulf Times confirmed in its report that CBUAE had signed an agreement with G42 Cloud and R3 to provide the necessary technology and infrastructure to implement a CBDC strategy. The strategy comes under CBUAE’s Financial Infrastructure Transformation (FIT) Programme. 

In contrast, Florida Governor Ron DeSantis wishes to outlaw CBDCs in the US. 

According to the press release from Monday, DeSantis proposed outlawing the use of both Fed-issued and foreign CBDC as currency. He has urged other states to follow suit by including similar prohibitions in their uniform commercial codes.

“The Biden administration’s efforts to inject a centralized bank digital currency is about surveillance and control,” DeSantis stated.


BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

Source link

We only source and collect valueable knowledge and information and do display it for public good (under the freedom of information act)

All image + text copyrights belong to their respectful owner, we do NOT claim any rights over those.

Continue Reading


Monero Founder Hits Back at Claims Tagging Him ‘Interpol Mole’




Monero founder Riccardo Spagni has quashed claims that he has been an informant who helped Interpol and other federal agencies trace funds.

Crypto Influencer James Edwards claimed in a thread that Spagni outed himself as an informant for Interpol after U.S. Marshals detained him pending extradition.

Spagni Alleged to Be Interpol Mole

In a tweet on March 20, James Edwards shared reports from 2021. Based on the reports, he inferred Monero founder Riccardo Spagni could be an Interpol informant.

He said, “Evidence strongly suggests he helped them track Monero.”

Riccardo “Fluffypony” Spagni was captured in the United States in August 2021. The well-known cryptocurrency personality was detained after being accused of crimes that first surfaced in 2009. He was reportedly fleeing fraud charges in South Africa.

Former employer Cape Cookies accused Spagni of fraud by forging invoices. According to court records, Fluffypony allegedly stole $100,000 between October 2009 and June 2011.

Edwards based some of his arguments on this case. Spagni’s attorney postponed the trial and mentioned COVID-19 risks in response to South Africa’s extradition request. Prior to the March 2021 hearing, Edwards alleged that Spagni and his wife fled South Africa. In addition, he claimed that their dread of the virus only prevented them from traveling to South Africa and not to Bermuda. Edwards noted that their journey included an unnatural stopover in the U.S.

Based on the asset tracing requests, Edwards said, “I exposed @mymonero (project founded by @fluffypony) was a “wallet” that stole funds and deanonymized users (en masse).”

Notably, the crypto commentator has used GPT-4 to draw some of these inferences.

Meanwhile, author and analyst Nassim Nicholas Taleb retweeted the assertions. The “Black Swam” author claimed that if Monero’s chief maintainer turns out to be an Interpol informant, his claim that every Bitcoin transaction can be traced could be accurate.

Monero Founder Hits Back Denying Claims

Monero founder ‘fluffypony’ responded to the allegations by calling James Edward “brain dead.” With regard to the allegations, Spagni said, “This nonsense post is unsurprising, coming from a known scammer.”

He also took a jibe at the influencer for using ChatGPT’s GPT-4 to “analyse” the reports. Denying all claims, the Monero founder said, “At no point have I ever met with and/or helped a law enforcement agency, or a government, or an individual, or a government agency, or a company, or ANYONE to trace Monero.”

The founder defended Monero’s cryptography, saying he could not assist the government with “privileged access.” He said, “I have no privileged access to Monero’s code, GitHub repo, website, Twitter account, DNS records, donated funds, or anything else.”

That said, Spagni agreed on Edwards’ thread that Interpol did ask him for assistance but “never followed up with what they needed assistance with.”

In defense, the founder stated, “They never responded with any details, they never reached out and told me what the request was with. It might not even have had anything to do with Monero, I have literally no idea what it was about.”

According to Crunchbase, Spagni founded Monero in 2014 and registered it in Australia. Monero underwent a hard fork in August last year to bring many privacy upgrades. In October 2022, Monero developers were speculated to be behind an attack on Zcash.

Monero XMR Price Chart by BeInCrypto
Monero XMR Price Chart by BeInCrypto

At press time, Monero’s privacy-focused coin XMR is trading at $152 after a muted performance this week.


BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

Source link

We only source and collect valueable knowledge and information and do display it for public good (under the freedom of information act)

All image + text copyrights belong to their respectful owner, we do NOT claim any rights over those.

Continue Reading


Tackling 5 Global Issues with Artificial Intelligence & Blockchain




Artificial Intelligence (AI) and blockchain technologies are rapidly transforming industries worldwide. By integrating these technologies, innovative and ethical solutions can be developed to address some of the most pressing global challenges. Here are five global issues that AI and blockchain can tackle today.

In a world full of complex challenges, AI and blockchain technologies unlock sustainable, effective solutions.

Combating Climate Change

AI and blockchain can play a pivotal role in mitigating the effects of climate change. By analyzing vast amounts of environmental data, AI can identify patterns. And predict future trends, recommending effective measures for reducing greenhouse gas emissions. 

Additionally, blockchain technology can ensure transparency and traceability in carbon credit trading and natural resource management, promoting accountability and sustainable practices. 

Algorand, a scalable and decentralized blockchain platform, has partnered with various organizations to develop solutions for carbon credit management and other environmental initiatives.

For instance, Algorand has partnered with ClimateTrade, a leading carbon offsetting platform, to streamline the carbon credit market. By utilizing Algorand’s blockchain technology, ClimateTrade enables businesses and individuals to offset their carbon emissions transparently and efficiently.

This partnership simplifies purchasing and tracking carbon credits, increasing accessibility and affordability for a wider audience. Algorand and ClimateTrade thus support global efforts to reduce emissions and combat climate change.

PlanetWatch utilizes Algorand’s blockchain to securely store and verify environmental data from numerous air quality sensors.

This data is used to track pollution levels, identify sources of contamination, and develop targeted solutions to improve air quality. By providing a decentralized and tamper-proof system for environmental data management, Algorand plays a vital role in promoting transparency and accountability in environmental monitoring and protection.

Tackling Poverty and Inequality

AI-powered platforms can enhance the efficiency and effectiveness of poverty alleviation programs by identifying areas of need. And optimizing resource allocation. Blockchain solutions can ensure the traceability of funds, promoting transparency and trust in these initiatives. 

For example, Cardano has been involved in projects addressing social issues such as digital identity solutions and agricultural supply chain management. Which can add to poverty reduction and greater equality.

Under Charles Hoskinson’s leadership, Cardano actively pursues projects in Africa, focusing on sustainable, accessible, and transparent solutions. Their commitment transcends individual projects, aiming to empower communities and foster long-term, positive change.

Cardano aims to foster a prosperous, advanced, and sustainable future in Africa through training, education, and infrastructure support.

Charles Hoskinson Cardano ADA Stablecoins
Cardano CEO Charles Hoskinson

Improving Healthcare Delivery

Moreover, AI can revolutionize healthcare by enabling the development of personalized treatment plans, improving diagnostic accuracy, and optimizing resource allocation. Concurrently, blockchain technology can secure patient data. Ensuring privacy and data integrity while allowing authorized parties to access critical information. Together, this combination of technologies can enhance the quality and accessibility of healthcare.

Strengthening Disaster Relief Efforts

Natural disasters and humanitarian crises require swift, coordinated responses to save lives and support affected communities. AI assists emergency responders by analyzing real-time data. Blockchain technology can facilitate secure and transparent donations for disaster relief efforts, fostering trust and encouraging support for global projects. 

Giveth, a community focused on building the future of giving, is one example of an organization leveraging these technologies to facilitate donations and support disaster relief efforts.

By using Ethereum’s blockchain technology, Giveth provides an open, transparent, and accessible environment for donors, recipients, and communities. Through its platform, donors can support projects directly, track the impact of their contributions, and remain engaged with the causes they care about. 

By streamlining the donation process and promoting transparency, Giveth seeks a future where giving is more efficient and rewarding for all parties.

Furthermore, AI and blockchain can revolutionize education by offering personalized learning experiences, tracking student progress, and identifying skill gaps. Because AI can analyze data to recommend tailored learning pathways. Blockchain can securely store and share educational records and achievements. 

So, these technologies can help bridge the digital divide. Providing access to quality education and skill development opportunities for individuals in remote or underserved areas.

Harnessing the Potential of AI and Blockchain

Additionally, AI and blockchain technologies hold immense potential for addressing pressing global issues. By leveraging their capabilities in a responsible and ethical manner, we can harness their power to drive sustainable solutions. And foster trust and transparency, to create a more equitable world. 

As the adoption of these technologies grows, we must remain mindful of potential risks and challenges. And ensure the use of AI and blockchain promotes the greater good.


All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

Source link

We only source and collect valueable knowledge and information and do display it for public good (under the freedom of information act)

All image + text copyrights belong to their respectful owner, we do NOT claim any rights over those.

Continue Reading


Copyright © 2022