Latest news with #digitalcurrency
Yahoo
3 days ago
- Business
- Yahoo
Voices: Governor Bailey is wrong: We should embrace the digital pound
Is the digital pound dead in the water? More than 100 countries are looking at the creation of their very own digital currencies. China already has one. The EU is developing a digital euro at pace. But the Bank of England? It seems to be tacking the opposite way to the rest of the world. Andrew Bailey told MPs on the Treasury Committee that he would need 'a lot of convincing' to greenlight a launch, which the Bank has already said couldn't happen until sometime in the 'second half of the current decade' anyway. Is this an opportunity missed? Even a case where the governor's conservatism threatens to leave Britons in the digital dark ages? First off, I should explain what the digital pound actually is. Digi-pounds (that's not the official name; I'm not sure we have one yet) would be currency issued by the Bank that could be stored in a digital wallet provided by a company like, say, Apple. This would allow you to pay for things directly, without the need for the card you currently have to be set up to use Apple Pay. People could also pay you by the same means. PS, Apple CEO Tim Cook isn't paying either me or The Independent for the mention. I'm using Apple Pay as an example because it's a service I use. Bailey is distinctly unimpressed with the idea of this new form of money. His preferred option is to help the market improve digital payment tech, which he said could deliver 'huge benefits'. Fraud reduction, lower costs, faster payments to SMEs (small to medium-sized enterprises), which at this point are probably saying chance would be a fine thing. 'That's a sensible place to do it because that's where most of our money is," the governor opined. But here's an idea: why not simply do both? Is that really so hard? Or is the Bank yet again in 'can't do' mode? It is true that there are legitimate concerns about digital currencies. Sceptics worry about vulnerability to hacking. Fears have also been expressed about their making it easier to launder money, even to facilitate terrorist financing. Criminals took up Bitcoin with alacrity. Lately, they have favoured so-called 'stablecoins', the value of which are linked to an underlying commodity or an existing currency such as the dollar. On the flip side, some critics have voiced fears about digital currencies being used to facilitate government snooping. This has been a big concern with the Chinese version given the obsessive interest in what its citizens do, say and even think of that country's government. But every new technology comes with pluses and minuses. It would be better for Bailey to accept that and roll with the punches. Bitcoin and its ilk already have a legion of fans in this country. If people like the concept of central bank-issued digital currencies, there would theoretically be nothing to stop them from using digital euros if and when they arrive. There are already outlets in London that accept the paper equivalent (and dollars and yen while we're at it). Here's a potential selling point for your business: 'We accept the digital euros!' Right now, the central bank looks flat-footed, a very obvious laggard, largely thanks to the conservatism of the governor. I suspect some of Bailey's caution can be traced back to his time at the head of the Financial Conduct Authority – a fairly thankless, if well remunerated, task at the best of times. Its CEO tends to get the blame for everything and the credit for nothing. Launching a new form of money is bound to create challenges, and it will once again be Bailey's head on the block if something goes wrong. There have lately been suggestions that the Bank could cease or at least shelve the work it has been doing on a digital pound. That would be a mistake. Digital currencies are coming. The Bank should accept that and prepare for the future. The governor badly needs to pull his legs out of the mud in which they're stuck. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
3 days ago
- Business
- The Independent
Governor Bailey is wrong: We should embrace the digital pound
Is the digital pound dead in the water? More than 100 countries are looking at the creation of their very own digital currencies. China already has one. The EU is developing a digital euro at pace. But the Bank of England? It seems to be tacking the opposite way to the rest of the world. Andrew Bailey told MPs on the Treasury Committee that he would need 'a lot of convincing' to greenlight a launch, which the Bank has already said couldn't happen until sometime in the 'second half of the current decade' anyway. Is this an opportunity missed? Even a case where the governor's conservatism threatens to leave Britons in the digital dark ages? First off, I should explain what the digital pound actually is. Digi-pounds (that's not the official name; I'm not sure we have one yet) would be currency issued by the Bank that could be stored in a digital wallet provided by a company like, say, Apple. This would allow you to pay for things directly, without the need for the card you currently have to have set up to use Apple Pay. People could also pay you by the same means. PS, Apple CEO Tim Cook isn't paying either me or The Independent for the mention. I'm using Apple Pay as an example because it's a service I use. Bailey is distinctly unimpressed with the idea of this new form of money. His preferred option is to help the market improve digital payment tech, which he said could deliver 'huge benefits'. Fraud reduction, lower costs, faster payments to SMEs, which at this point are probably saying chance would be a fine thing. "That's a sensible place to do it because that's where most of our money is," the governor opined. But here's an idea: why not simply do both? Is that really so hard? Or is the Bank yet again in 'can't do' mode? It is true that there are legitimate concerns about digital currencies. Sceptics worry about vulnerability to hacking. Fears have also been expressed about their making it easier to launder money, even to facilitate terrorist financing. Criminals took up Bitcoin with alacrity. Lately, they have favoured so-called ' stablecoins ', the value of which are linked to an underlying commodity or an existing currency such as the dollar. On the flip side, some critics have voiced fears about digital currencies being used to facilitate government snooping. This has been a big concern with the Chinese version given the obsessive interest in what its citizens do, say and even think of that country's government. But every new technology comes with pluses and minuses. It would be better for Bailey to accept that and roll with the punches. Bitcoin and its ilk already have a legion of fans in this country. If people like the concept of central bank issued digital currencies, there would theoretically be nothing to stop them from using digital euros if and when they arrive. There are already outlets in London that accept the paper equivalent (and dollars and yen while we're at it). Here's a potential selling point for your business: 'We accept the digital euros!' Right now, the central bank looks flat-footed, a very obvious laggard, largely thanks to the conservatism of the governor. I suspect some of Bailey's caution can be tracked back to his time at the head of the Financial Conduct Authority, a fairly thankless, if well remunerated, task at the best of times. Its CEO tends to get the blame for everything and the credit for nothing. Launching a new form of money is bound to create challenges and it will once again be Bailey's head on the block if something goes wrong. There have lately have been suggestions that the Bank could cease or at least shelve the work it has been doing on a digital pound. That would be a mistake. Digital currencies are coming. The Bank should accept that and prepare for the future. The governor badly needs to pull his legs out of the mud in which they're stuck.
Coin Geek
5 days ago
- Business
- Coin Geek
Bad week for UK: ‘Crypto' ATM crackdown, BTC sell-off
Getting your Trinity Audio player ready... It was a rough week for all things digital money in the United Kingdom, as reports emerged that the government plans to sell off $7.2 billion (£5.33 billion) in confiscated BTC, rather than stockpiling it as some industry groups have urged. Meanwhile, the U.K.'s digital currency ATM crackdown continued, just as new online research by the U.K.'s top ATM network showed that cash is still the most trusted payment method in the country. UK's digital currency sell-off On July 19, The Telegraph newspaper reported that the U.K. Chancellor, Rachel Reeves, was working with police forces to sell off a stockpile of seized digital assets worth 'at least' £5 billion ($6.7 billion). It's estimated that the U.K. government currently holds around $7.2 billion (£5.33 billion) in confiscated BTC as a result of investigations into frauds, scams, money laundering, and other illicit finance. The report, published Saturday, stated that the U.K. Home Office plans to develop an official digital asset storage system to handle BTC sales and other digital currencies. This is part of a broader effort by the U.K. government, under Prime Minister Keir Starmer's Labour Party, to fill a much-talked-about £22 billion ($29 billion) 'black hole' in the U.K.'s public finances. Selling off over £5 billion worth of BTC would undoubtedly dent this figure, but the rumored move met with a swift and negative response from key voices in the digital asset and finance space. On Monday, trade association CryptoUK called on the government to take 'a long-term view,' arguing that the plan to sell off the nation's confiscated crypto stockpile 'would run contrary' to the country's goal of becoming a digital asset innovation hub. 'We would urge the government to take a long-term view on the holding of crypto and deeply consider what message offloading these digital assets would send to the UK's crypto industry,' said a CryptoUK spokesperson, as reported by tech news site Decrypt on July 21. The trade association added that 'other jurisdictions now hold Bitcoin reserves and Bitcoin treasuries are increasingly popular with companies.' This sentiment was echoed by Nigel Green, CEO of global financial advisory giant deVere Group, who pointed to the example of the United States and its recently announced Bitcoin Reserve. 'If countries like the US, the world's largest economy, are seriously weighing Bitcoin as a reserve, why would the UK liquidate instead?' He argued. 'If we advocate crypto as strategic, then hastily disposing of seized Bitcoin is hypocritical—and harmful.' Green warned that the mooted move would echo past errors and undermine long-term strategy. 'Turning these assets into instant cash is tempting, but it risks repeating historical errors,' said Green, noting that 'they sold gold in a dip, only to regret it years later. We risk replaying that error with Bitcoin.' He emphasized that 'emergency fiscal relief is not always best served by fire-sale tactics.' Green reiterated that 'fiscal pressure shouldn't drive poor asset decisions,' and suggested that, far from being a gamble, BTC could act like digital gold: 'It's scarce, decentralised, and a hedge against inflation.' At the same time as Chancellor Reeves was reportedly discussing with the U.K. police selling the government's substantial holdings of confiscated BTC, the latter was continuing its crackdown on rogue crypto ATMs. Digital currency ATMs under fire again According to a July 17 statement from the Financial Conduct Authority (FCA)—the U.K.'s top finance sector watchdog—two individuals were arrested, and seven digital currency ATMs found and seized, as part of an operation led by the FCA and the Metropolitan Police Service targeting four premises across southwest London. Since January 10, 2021, businesses providing certain digital asset services in the U.K. must be registered with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). Therefore, operating a cryptoasset exchange or a digital currency ATM in the U.K. is illegal without FCA registration. By July 2023, the FCA had announced the shutdown of 26 machines operating unlawfully nationwide. Despite these closures, operating a digital currency ATM in the U.K. is technically still legal, as long as the operator registers with the FCA. However, the FCA has yet to approve a single registration for a digital currency ATM, amounting to an effective ban, in all but name. 'There are currently no legally-operated crypto ATMs in the UK, so using one only supports crime,' said the FCA. 'If you're operating a crypto ATM or exchange illegally, then you should expect serious consequences.' This attitude is not unique to the U.K., as recent months have seen an increasing global crackdown on digital currency ATMs. In the U.S., in February, Senator Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, introduced the Crypto ATM Fraud Prevention Act. It would, amongst other measures, prevent new users from spending more than $2,000 daily or $10,000 over a 14-day period at digital currency ATMs, and require live, verbal confirmation for any transaction greater than $500. In April, Australia followed suit by putting digital currency ATM operators on notice over a lack of AML/CFT checks; and most recently, earlier in July, New Zealand outright banned digital currency ATMs. These crackdowns demonstrate a concern amongst lawmakers and regulators that the digital currency ATM sector is a particular hotbed of illicit finance, fraud, and scams—a feeling that the U.K. general public may well share. Just as the FCA continues to enthusiastically enforce its de facto ban on digital currency ATMs, the U.K.'s main ATM and interbank network published new research showing that cash is still the most trusted payment method in the country. UK still values cash despite growth in digital payments This week, Link, the U.K.'s leading cash access and ATM network, published the results of research into current customer payment and spending habits. It found that 'while contactless card payments are seen as the most convenient and quickest form of payment by a significant majority of consumers, cash is seen as the most reassuring for staying within a budget and fully understanding the cost of shopping too.' According to the research, almost two-thirds of consumers (65%) said cash protects them from fraud, compared to (22%) contactless card and (18%) digital wallets. While contactless, via card, remained 'the most preferred payment method for consumers,' with 40% choosing this option, this number was slightly down on previous LINK research. The publication suggested this 'may reflect the growing popularity of digital wallets such as Apple Pay or Google, which increased over the same period.' In a seeming blow to the digital payments and digital money sectors, the data revealed that 63% of respondents said they were unlikely to go completely cashless in the next 12 months, with only 8% being entirely cashless today, up from 6% in late 2024. The research also saw 85% of respondents highlight the risk of a cashless society and its effect on people who cannot use digital payments yet. 'Cash remains a critical part of the UK's payment landscape,' said Graham Mott, LINK director of strategy. 'This research shows that, while digital payments are growing, cash continues to play a vital role in financial inclusion, budgeting, and consumer choice.' Digital assets were not specifically mentioned as a part of the survey, but the findings that cash remains more trusted than digital payments almost certainly imply that digital assets have a long way to go—in the U.K. at least—before they will be considered a secure and trusted form of payment akin to fiat currency. Watch: How do you build a successful ecosystem? Bring blockchain to the builders! title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Yahoo
6 days ago
- Business
- Yahoo
Asia Morning Briefing: Animoca Exec Says U.S. Heat Is Pushing China's Stablecoin Agenda
Good Morning, Asia. Here's what's making news in the markets: Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook Americas. In 2021, China's central bank warned that global stablecoins could bring risks and challenges to the "international monetary system, payment and clearing system, monetary policies, [and] cross-border capital flow management." That quote, from the People's Bank of China's white paper on its e-CNY project, reflected the PBOC's deep skepticism toward private-sector digital currencies, particularly Facebook's Libra. As it turns out, Libra never launched. But stablecoins like Tether's USDT and Circle's USDC are now deep inside the financial plumbing around the world, especially in Asia, making processes like supply-chain financing more efficient than ever. As a result, Beijing's caution on stablecoins is giving way to a sense of urgency. They're on the agenda because they are seen as just another way the U.S. dollar is cementing itself in Asia's financial pipework, and that's not something the Chinese authorities are happy with. Animoca Group President Evan Ayuang said in an interview with CoinDesk that China's interest in stablecoins has been accelerating. It's been that way for a while, but now it's only increasing as they go mainstream on Wall Street. 'Right now, stablecoins are making a comeback for policymakers and interested issuers. The question is why?' he told CoinDesk. 'It really has to do with the Trump presidency … all the signals that the U.S. is coming out and giving out, they're actually pressuring China to act a lot faster.' Animoca is a Hong Kong-based Web3 fund that has its hands in all things crypto. The pressure point, he argues, is the recently enacted GENIUS Act which, for the first time, provides U.S. federal regulatory clarity on fiat-backed stablecoins and cements their role in the global financial system. Effectively, it could be seen as a digital extension of dollar hegemony, one that China can't afford to ignore. Animoca has its own stablecoin interests. It's part of a consortium that includes Standard Chartered Bank and Hong Kong Telecom working on a Hong Kong dollar (HKD)-denominated stablecoin. 'When China looks at the GENIUS Act, the way they look at it is that the U.S. is going after the space,' Auyang said. 'And if [the] dollar right now is the dominant reserve currency … it's always about these regular stablecoins that flow in the financial system to settle currency in light of trade tensions and direct bilateral trade deals. That matters.' There's a clear contrast from the tone of the PBOC's 2021 white paper, which portrayed stablecoins as destabilizing and speculative, lumping them alongside volatile cryptocurrencies. But, as Auyang noted, the conversation has shifted. Beijing now sees the need to compete on blockchain rails, particularly through regulated, offshore yuan (CNH) stablecoins, which could help make the country's currency — the reminbi (RMB), or, colloquially, the yuan — a more practical choice for offshore settlement. 'If you are trying to make RMB more internationalized, but in a controlled way, this is it. The offshore CNH is it,' Auyang said. 'That stablecoin is the way to internationalize it that allows you to have the currency control still in place, but allows you to have offshore.' A regulated stablecoin, be it HKD or CNH, can be connected to onshore Chinese assets that could be put onto public blockchains, thereby creating new and important financial rails for the country. While e-CNY use cases have typically revolved around central banks and institutions. The HKD or CNH stablecoin, issued in Hong Kong or through public blockchain infrastructure, offers a vehicle for internationalizing the currency while still respecting Beijing's capital controlss. Another option could be liquidity pools in Hong Kong that provide places for HKD, CNH, and e-CNY transactions to settle. Of course, he said, Beijing has its eye on HKD stablecoins as the City, with its autonomous legal framework, is China's sandbox. 'At some point in time, it's going to be the stablecoin,' he said, predicting that even international business-to-business payments will favor tokenized fiat over permissioned central bank digital currencies (CBDCs). And this shift isn't limited to China. 'Everybody's going to do this after the U.S. passes the GENIUS Act. Every country is going to think about this. Every country will have a regulated stablecoin at some point in time,' he said. This isn't about overthrowing the dollar, which is an impossible task considering the liquidity it has. 'When I'm trading with my partners in Southeast Asia, there is deep enough liquidity out there in non-USD stablecoin pairs for that trade to happen,' he said. The PBOC's 2021 white paper framed stablecoins as threats. Four years later, Beijing seems to be warming up to the idea that they have a role to play in the financial order of the future. Market Movements BTC: Bitcoin is consolidating around $118,000 after last week's $123,000 all-time high, with analysts warning of a potential dip to $115,000 amid fragile sentiment, profit-taking, and minor bearish signals, though onchain data suggests the uptrend could soon resume. ETH: ETH remains in a strong uptrend above key moving averages, trading at $3,619 after a rally that pushed prices near $3,800, with $3,300 now acting as key support to maintain the bullish structure. Gold: Gold prices fell 0.6% to $3,410.26 on Wednesday as a US-Japan trade deal eased trade war fears and dampened safe haven demand, though longer-term support remains from de-dollarization and central bank buying. Nikkei 225: The Nikkei 225 rose 1.09% on Thursday, extending gains as optimism over trade deals with the U.S. and potential progress with the EU lifted Asia-Pacific markets.S&P 500: U.S. stocks rose solidly on Wednesday—driven by optimism over the U.S.-Japan trade deal—with the Dow up over 1%, the S&P 500 gaining more than 0.75%, and the Nasdaq adding around 0.6%. Elsewhere in Crypto: Tether CEO: US market entry 'well underway' amid plans for institutional stablecoin (The Block) Some Tokenization Is Just 'Gambling', Says Prometheum Co-CEO (Decrypt) The Market Has Become 'Overly Excited' for Stablecoins, Hong Kong Financial Regulator Says (CoinDesk)Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Arab News
21-07-2025
- Business
- Arab News
Morocco's central bank explores digital currency cross-border payments
RABAT: Morocco's central bank was exploring the use of its own digital currency for peer-to-peer and cross border payments, bank governor Abdellatif Jouahri said on Monday. A central bank digital currency (CBDC) is controlled by the central bank, in contrast to cryptocurrencies that are usually decentralized. Cryptocurrencies have been banned in Morocco since 2017, but the public continues to use them underground, circumventing restrictions. The bank has been working with the IMF and the World Bank to assess the payment system impacts of its central bank digital currency (CBDC), Jouahri told a conference in Rabat. The Moroccan central bank, together with its Egyptian peer and the World Bank, was also exploring the use of the CBDC for cross-border transfers, he said. A draft law on crypto assets is currently under review by the finance ministry before entering the adoption process, Jouahri said last month.
