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Emerging Tech

Central Bank Digital Currency

<p>The Central Bank of Norway, Norges Bank, is set to delve deeper into the realm of Central Bank Digital Currency (CBDC), revealing plans to extend its ongoing research project into a fifth phase. The initiative aims to evaluate the feasibility and implications of introducing CBDC against the backdrop of evolving global trends in digital finance.</p>

<h3>Fifth phase focuses on recommendations and design characteristics</h3>

<p>Following the completion of a comprehensive fourth phase involving experimental testing and legislative reviews, the fifth phase is poised to provide a recommendation to Norges Bank’s executive management regarding the potential introduction of CBDC in Norway. The research will not only assess the possibilities and impact of CBDC issuance but will also outline design characteristics for its optimal functioning.</p>

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<h3>Norges bank governor emphasises relevance of CBDC in changing landscape</h3>

<p>Governor Ida Wolden Bache highlighted the increasing relevance of CBDC, stating that while Norway's current payment system is robust, the decline in cash usage and the emergence of new payment platforms necessitate preparedness for the future. The governor stressed the importance of being ready to introduce CBDC, especially if societal considerations are challenged by evolving payment system dynamics.</p>

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<p>In a forward-looking approach, Norges Bank aims to explore CBDC for general-purpose users and investigate new forms of settlement in central bank money that could foster innovation in the financial system.</p>

<p>The statement did not specify the exact commencement date for the fifth phase but assured ongoing communication with stakeholders in the Norwegian payment system, international organisations, and other central banks. Norges Bank is positioning itself to adapt to changes in the payment landscape and aims to make an informed decision on CBDC issuance by late 2025.</p>


Norges Bank, the Central Bank of Norway, has unveiled its intentions to progress to the fifth phase of its CBDC pilot, delving into issuance considerations amidst the changing landscape of global trends.

The initiative aims to evaluate the feasibility and implications of introducing CBDC against the backdrop of evolving global trends in digital finance

It will not only assess the possibilities and impact of CBDC issuance but will also outline design characteristics for its optimal functioning

emerging tech

cbdc

Norway's central bank sets sights on CBDC wholesale study, decision expected in late 2025

Norway's central bank sets sights on CBDC wholesale study

<p>In a significant development within the BRICS economic alliance, the United Arab Emirates (UAE) and China have reinforced their economic collaboration through the renewal of a currency swap agreement and the signing of a Central Bank Digital Currency (CBDC) partnership. As key players within the BRICS bloc, the agreements mark a crucial step toward enhancing local currency promotion and advancing digital finance initiatives.</p>

<h3>Central banks seal the deal with 18 billion dirhams &amp;&nbsp;35 billion yuan currency swap</h3>

<p>The Central Bank of the UAE and the People’s Bank of China officially sealed the agreements, with CBUAE governor Khaled Mohamed Balama and People's Bank of China governor Pan Gongsheng signing the documents. The currency swap, valued at 18 billion dirhams (approximately 35 billion yuan), aims to bolster relations and bilateral cooperation between the two nations over the next five years. The move reflects a concerted effort to strengthen economic ties and emphasises cooperation in economic and digital finance domains.</p>

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<h3>UAE's strategic move ahead of official BRICS entry in 2024</h3>

<p>The UAE, having accepted the BRICS alliance's invitation in August, is strategically positioning itself for enhanced relations before its official entry into the bloc in 2024. The proactive approach is expected to contribute to the nation's success within the alliance during the early months of next year. With a focus on economic and digital finance fields, the partnership also raises questions about the potential inclusion of digital currencies, such as China's successful digital Yuan CBDC, as integral components within the BRICS framework.</p>

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<p>In conclusion, the strengthened economic ties between the UAE and China underscore the growing significance of the BRICS alliance on the global stage, with both nations actively contributing to the bloc's economic and digital finance agendas.</p>


As key players within the BRICS bloc, the said agreements mark a crucial step toward enhancing local currency promotion and advancing digital finance initiatives.

UAE and China have reinforced their economic collaboration through the signing of a CBDC partnership

The currency swap, valued at 18 billion dirhams, aims to bolster relations and bilateral cooperation between the two nations over the next five years

UAE & China strengthen ties with currency swap renewal & CBDC partnership

UAE & China ink currency swap renewal & CBDC partnership

<p>In a groundbreaking move, the Bank of Korea (BOK) has <a href="https://www.bok.or.kr/eng/bbs/E0000634/view.do?nttId=10079839&amp;menuNo=400069&amp;searchWrd=BOK&amp;searchCnd=1&amp;sdate=&amp;edate=&amp;pageIndex=1">unveiled ambitious plans</a> for a pilot programme to test its highly anticipated Central Bank Digital Currency (CBDC), signalling a significant stride in the realm of digital currency innovation.</p>

<p>The programme, set to kick off in collaboration with the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), is slated for launch in the year 2024.</p>

<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">🇰🇷 South Korea accelerates into the Digital Currency era. Bank of Korea announces CBDC pilot, inviting 100,000 citizens to test the future of payments. Here are the details... ↓<a href="https://twitter.com/hashtag/CBDC?src=hash&amp;ref_src=twsrc%5Etfw">#CBDC</a> <a href="https://twitter.com/hashtag/SouthKorea?src=hash&amp;ref_src=twsrc%5Etfw">#SouthKorea</a> <a href="https://twitter.com/hashtag/CryptoNews?src=hash&amp;ref_src=twsrc%5Etfw">#CryptoNews</a> <a href="https://t.co/JSDeK0CZEI">https://t.co/JSDeK0CZEI</a></p>
— BSCN (@BSCNews) <a href="https://twitter.com/BSCNews/status/1728337904441741337?ref_src=twsrc%5Etfw">November 25, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<h3>Global recognition &amp; collaboration</h3>

<p>This strategic initiative garnered attention on the global stage after a pivotal meeting between BOK Governor, Rhee Chang-yong and Bank for International Settlements General Manager, Agustin Carstens. Carstens lauded the endeavour as a forward-looking approach to the future of monetary systems, affectionately referring to the project as the "digital Won."</p>

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<h3>The digital won in action</h3>

<p>The CBDC pilot programme is designed to involve 100,000 Korean participants who will engage with deposit tokens based on the ‘digital Won.’ This bold move aims to seamlessly integrate digital currencies into everyday transactions, setting the stage for a transformative shift in the country's financial landscape.</p>

<h3>Enhancing financial transactions</h3>

<p>The CBDC, as a digital form of money backed by the central bank, seeks to address challenges prevalent in current systems, such as high transaction fees and slow settlement processes. Participants in the pilot programme will enjoy the ability to make purchases using deposit tokens issued by commercial banks, mirroring the functionality of vouchers.</p>

<h3>Timelines &amp; limitations</h3>

<p>The recruitment of participants is scheduled to take place between September and October 2024, with the project running for a duration of three months. However, during the pilot phase, the use of digital currencies will be confined to designated payment purposes, with restrictions on personal remittance and other applications.</p>

<h3>Beyond transactions</h3>

<p>Looking beyond everyday transactions, the BOK is exploring the integration of CBDC in a simulated carbon emissions trading system in collaboration with the Korea Exchange. This experiment will test the viability of transactions involving carbon emissions rights and payment tokens.</p>

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<h3>Future prospects</h3>

<p>This strategic move positions South Korea at the forefront of digital currency integration, potentially setting a benchmark for other nations in the future of financial transactions. The BOK envisions additional separate pilots based on proposals from banks, showcasing a commitment to ongoing innovation in the financial sector.</p>


South Korea's CBDC pilot: Redefining transactions and shaping the 'digital Won' as a global benchmark for innovation.

Bank of Korea leads with a groundbreaking CBDC programme, transforming daily transactions for 100,000 users

The initiative propels digital currency into mainstream transactions, reshaping the financial landscape

South Korea's CBDC move gains international acclaim, solidifying its position at the forefront of digital currency innovation

CBDC

South Korea pioneers CBDC innovation: Digital Won pilot programme in 2024

South Korea's digital won: BOK launches innovative CBDC pilot in 2024

<p>Kazakhstan officially unveiled its central bank digital currency (CBDC), the digital tenge, on 15 November, marking a historic moment for the Central Asian nation. The National Bank of Kazakhstan, in collaboration with second-tier banks and their clients, initiated the pilot phase of the digital currency within a limited environment involving real users.</p>

<h3>First retail transaction &amp; integration with payment giants</h3>

<p>Binur Zhalenov, Chairman of Kazakhstan’s National Payment Corporation (NPC), conducted the inaugural retail transaction using the digital tenge. This transaction, facilitated through a debit card linked to the CBDC account, signifies a significant milestone in the country's digital currency journey.</p>

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<p>To support the integration of the digital tenge on cards, Kazakhstan has partnered with payment giants Visa and Mastercard. Zhalenov expressed optimism about the large-scale development of the platform in collaboration with financial market participants, anticipating the emergence of innovative services.</p>

<h3>Versatility &amp; future development</h3>

<p>Zhalenov highlighted the digital tenge's versatility, emphasizing its applications in smart contracts, financial services, and digital asset transactions. The upcoming focus of CBDC development includes enabling offline payments in 2024 and integrating cross-border trade by 2025.</p>

<p>The complete rollout of the digital tenge is slated for conclusion by the end of 2025, promising expanded services, application scenarios, and increased involvement of platform participants.</p>

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<h3>Global CBDC trends</h3>

<p>As multiple countries gear up to launch digitised versions of their legal tenders, research suggests that the value in CBDC payments is expected to reach $213 billion annually by 2030, a substantial increase from $100 million in 2023.</p>

<p>A study by Juniper Research indicates a shift in the transaction landscape, with an estimated 92% of the total CBDC value paid domestically by 2030. Other countries, such as Brazil and the European Union, are also advancing their CBDC initiatives, with Brazil expecting to introduce its digital currency in 2024 and the Digital Euro projected to be finalised by the end of 2025.</p>


On November 15th, Kazakhstan launched its CBDC, the digital tenge, in a pilot phase with real users, in collaboration with second-tier banks.

Recently, Kazakhstan launched its CBDC, the digital tenge, in a controlled environment with real users

To support the integration of the digital tenge on cards, Kazakhstan has partnered with payment giants Visa and Mastercard

Kazakhstan unveils digital tenge

Kazakhstan makes history: Digital tenge debuts in first-ever retail transaction during limited pilot phase

Kazakhstan's digital tenge debuts in first-ever retail transaction

<p>During the Singapore FinTech Festival, International Monetary Fund (IMF) managing director Kristalina Georgieva emphasised the imperative for global readiness in adopting central bank digital currencies (CBDCs). Despite acknowledging that CBDC adoption is not imminent, Georgieva urged countries to actively explore and prepare for the potential deployment of CBDCs and associated payment platforms.</p>

<h3>Exploring the landscape of CBDCs</h3>

<p>Georgieva revealed that approximately 60% of countries are currently exploring CBDCs in various capacities. While adoption remains a distant prospect, she highlighted CBDCs' potential to replace physical cash, enhance resilience in advanced economies, and promote financial inclusion in underserved communities. Georgieva sees CBDCs as a coexisting alternative to private money, offering a secure and cost-effective option.</p>

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<h3>Technological infrastructure and cross-border payments</h3>

<p>The IMF head underscored the critical role of robust technological infrastructure in CBDC projects. Emphasising the need for personal data protection and potential integration of artificial intelligence (AI), Georgieva particularly stressed the importance of supporting cross-border payments. She noted that current cross-border transactions are expensive, slow, and limited in accessibility, urging proactive measures to ensure CBDCs are designed to facilitate seamless cross-border transactions.</p>

<h3>IMF's CBDC handbook and collaboration with BIS</h3>

<p>Georgieva highlighted the IMF's commitment to CBDC development, presenting the organization's CBDC virtual handbook. She acknowledged the significant role played by the Bank for International Settlements (BIS) in conducting experiments related to digital money within the public sector.</p>

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<p>The IMF's recent collaboration with the Financial Stability Board resulted in a Synthesis Paper, unanimously adopted by G20 finance ministers and central bank governors in October, outlining necessary crypto regulations.</p>

<p>As CBDCs emerge on the global financial horizon, the IMF urges nations to stay ahead in their preparedness for these digital currencies. While widespread adoption is yet to materialise, the potential benefits of CBDCs in replacing cash, bolstering economic resilience, and fostering financial inclusion make it a topic of increasing importance on the international stage.</p>


As CBDCs emerge on the global financial horizon, the IMF urges nations to stay ahead in their preparedness for these digital currencies. 

IMF head urged countries to actively explore and prepare for the potential deployment of CBDCs and associated payment platforms

She highlighted CBDCs' potential to replace physical cash, enhance resilience in advanced economies, and promote financial inclusion in underserved communities

IMF chief calls for global readiness on CBDCs 

IMF chief advocates CBDCs as cash replacement & catalyst for financial inclusion

IMF urges swift preparation for CBDCs

<p>Central Bank Digital Currency (CBDC) initiatives are gaining traction around the world, and India is no exception. However, recent data suggests that the wholesale <a href="https://www.web3cafe.in/emerging-tech/cbdc">pilot of the CBDC</a> launched by the Reserve Bank of India (RBI) has encountered some challenges.</p>

<h3>Wholesale pilot of CBDC faces declining activity</h3>

<p><a href="https://www.web3cafe.in/emerging-tech/cbdc/story/indias-cbdc-adds-pnb-axis-bank-more-to-its-pilot-rbi-satisfied-with-current-progress-568256-2023-05-31">The RBI's wholesale CBDC pilot</a>, which began in November, aimed to settle trades of government securities (G-Secs) using the digital rupee. Initially, the pilot showed promising results, with daily settlement volumes ranging from Rs 500-600 crore and 45 to 60 trades a day in its first month.</p>

<p>Unfortunately, subsequent months witnessed a decline in activity, with daily settlement volumes dropping to just Rs 10-60 crore and trades dwindling to two to six per day.</p>

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<p>The concept of CBDC is still relatively new in India, and the participating banks didn't identify significant arbitrage opportunities. This, coupled with the pilot nature of the project, has resulted in limited engagement from banks.&nbsp;</p>

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<h3>Retail CBDC gains more momentum</h3>

<p>In contrast to the wholesale segment, the retail pilot of the CBDC has been more successful. The RBI introduced the retail CBDC pilot in December, and it has been well-received.</p>

<p>During the Global SME Finance Forum 2023, held last month, RBI Deputy Governor T Rabi Sankar revealed that approximately 15,000 daily transactions were taking place in the retail CBDC pilot.</p>

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<p>This success can be attributed primarily to the seamless interoperability with the Unified Payments Interface (UPI) QR codes.</p>

<blockquote class="at-quotes">
<p>It is roughly around 15,000 transactions a day or so; we will have to take it to one million</p>

<div class="author">T Rabi Sankar, RBI Deputy Governor</div>
</blockquote>

<p>This feature allows customers to send funds from a CBDC wallet or a bank account using a single QR code. The RBI's focus now is on scaling these retail CBDC transactions to reach one million daily transactions, which would provide a significant boost to digital currency adoption.</p>

<p>In short, while the wholesale pilot of the RBI's CBDC has faced challenges with declining trade and settlement volumes, the retail segment is showing promise, thanks to its integration with popular payment methods like UPI.</p>

<p>As the concept of CBDC matures in India, it's expected that both segments will witness increased interest and activity, contributing to the country's digital currency evolution.</p>


While the retail segment gains momentum with daily transactions, the wholesale segment witnesses a decline in trade and settlement volumes.


RBI's CBDC pilot program shows strong growth in the retail segment but a decline in the wholesale sector

Retail CBDC transactions reach 15,000 per day, benefiting from UPI interoperability

Wholesale CBDC faces challenges due to its experimental nature and limited arbitrage opportunities

 RBI's CBDC Pilot Shows Mixed Results

RBI's CBDC pilot shows mixed results with the retail segment gaining momentum

RBI's CBDC pilot: Retail segment thrives, wholesale sees decline

<p>In a groundbreaking move, the Shanghai Petroleum and Natural Gas Exchange (SHPGX) announced the successful settlement of a cross-border oil transaction using China's <a href="https://www.web3cafe.in/emerging-tech/cbdc">central bank digital currency </a>(CBDC), commonly known as the e-CNY. PetroChina International, on 19 October, became the first entity to purchase 1 million barrels of crude oil using the digital yuan, marking a significant milestone in the integration of the digital currency into the global economic landscape.</p>

<h3>A major leap in de-dollarisation efforts</h3>

<p>Responding to a call by the Shanghai Municipal Party Committee and Municipal Government, the SHPGX facilitated the deal, emphasising the importance of applying the digital yuan to international trade. While specific details about the seller and transaction price remain undisclosed, the move reflects China's commitment to promoting the use of the yuan in cross-border settlements. The transaction also aligns with the global trend of de-dollarisation, as nations seek alternatives to the US dollar in international trade transactions.</p>

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<h3>Digital yuan gains momentum on international stage</h3>

<p>This successful oil deal follows previous milestones in the international use of the yuan. Earlier in the year, the yuan was utilised in liquefied natural gas (LNG) transactions on the SHPGX. Notably, the recent oil transaction signifies a significant leap forward, demonstrating the growing confidence in the digital yuan's stability and reliability for large-scale international deals.</p>

<h3>Global collaborations foster cross-border CBDC transactions</h3>

<p>In a parallel development, the First Abu Dhabi Bank announced its agreement with the Bank of China, paving the way for digital currency collaborations between nations. The partnership aims to support cross-border transactions through the mBridge platform, facilitating seamless exchanges using central bank digital currencies. This initiative not only strengthens economic ties but also establishes a framework for future international transactions, fostering financial cooperation between nations.</p>

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<p>As the digital yuan gains traction in international trade, it marks a paradigm shift in global finance, with the potential to reshape traditional economic dynamics and foster greater financial inclusivity on the international stage.</p>


Chinese digital yuan has been utilised in landmark international oil transaction, thereby marking a paradigm shift in global finance, with the potential to reshape traditional economic dynamics and foster greater financial inclusivity on the international stage.

PetroChina International, on 19 October, became the first entity to purchase 1 million barrels of crude oil using the digital yuan

The transaction also aligns with the global trend of de-dollarisation, as nations seek alternatives to the US dollar in international trade transactions.

Cross-border oil deal sealed using China's digital yuan 

Historic milestone: Chinese digital yuan settles cross-border oil transaction for the first time

Chinese digital yuan settles cross-border oil transaction for the first time

<p>Central banks across the European Union are set to reveal plans for a wholesale <a href="https://www.web3cafe.in/emerging-tech/cbdc">Central Bank Digital Currency</a> (CBDC) in the coming weeks, according to François Villeroy de Galhau, the Governor of France's central bank. The announcement was made at an event in Paris on Tuesday, where Villeroy de Galhau emphasised the speed of progress in the development of a CBDC tailored for financial markets.</p>

<h3>Wholesale CBDC advancements outpace retail controversy</h3>

<p>The wholesale CBDC, designed for use within financial markets, is progressing swiftly, overshadowing a more contentious proposal for a digital euro intended for everyday citizens. Concerns regarding privacy and the potential impact on commercial banks have raised debates among lawmakers, resulting in a cautious approach towards the retail digital currency initiative.</p>

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<p>Villeroy de Galhau mentioned that the Eurosystem has initiated explorations into innovative technologies for central bank money settlement, including the issuance of tokenised CBDC. Eligibility criteria and the call for interest will be published in the coming weeks, with practical trials, involving real transactions, slated for the next year.</p>

<h3>Permissioned networks &amp; potential savings</h3>

<p>The central banks are considering permissioned networks operating with smart contracts, allowing them to govern money supply effectively. Exploring alternative protocols and blockchains, along with their proprietary Distributed Ledger for Securities Settlement System (DL3S), is part of their strategy. Notably, recent research by financial experts suggested that utilising distributed ledger technology in financial markets could potentially save a staggering $100 billion annually by streamlining collateral and automating back-office processes.</p>

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<p>While the wholesale CBDC plans have been well-received in industry circles, the fate of the retail CBDC remains uncertain. A group of cross-party EU lawmakers has urged the European Central Bank to delay any decisions related to the retail CBDC until new legal constraints are agreed upon. The signatories of the letter include influential figures like Michiel Hoogeveen from the Netherlands, former Belgian Finance Minister Johan van Overtveldt, and Markus Ferber, the economic spokesperson for the European People's Party.</p>


The European Union is all set to foray into wholesale CBDC space. The Eurosystem has initiated explorations into innovative technologies for central bank money settlement, including the issuance of tokenised CBDC. 

The wholesale CBDC is progressing swiftly, overshadowing a more contentious proposal for a digital euro intended for everyday citizens

Eligibility criteria and the call for interest will be published in the coming weeks

European central banks forge ahead with wholesale CBDC plans

EU central banks set to unveil wholesale CBDC plans within weeks, says France's central bank chief

EU central banks set to unveil wholesale CBDC plans within weeks

<p>In a significant step towards exploring the potential of <a href="https://www.web3cafe.in/topic/cbdc">central bank digital currencies</a> (CBDCs) on a global scale, the Bank for International Settlements (BIS) and the central banks of France, Singapore, and Switzerland have successfully concluded a joint test of cross-border trading and settlement of wholesale CBDCs. The findings of this pioneering experiment, known as Project Mariana, were released on 28 September by the Banque de France.</p>

<h3>Testing the waters with Project Mariana</h3>

<p>Project Mariana, developed under the guidance of the BIS, brought together the expertise of the Banque de France, the Monetary Authority of Singapore, and the Swiss National Bank. The objective was to test the cross-border trading and settlement of hypothetical euro, Singapore dollar, and Swiss franc CBDCs using decentralised finance (DeFi) technology concepts on a public blockchain.</p>

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<p>The core concept of Project Mariana revolves around a common token standard deployed on a public blockchain. It leverages bridges to facilitate the seamless transfer of CBDCs between different networks and utilises a specific type of decentralised exchange for the automated settlement of spot foreign exchange transactions.</p>

<h3>A successful experiment with room for growth</h3>

<p>While the participants in Project Mariana view the experiment as successful, they emphasise the need for further research and experimentation. It is crucial to note that this project is purely experimental and does not imply any immediate plans for the partner central banks to issue CBDCs or endorse a specific technological solution.</p>

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<p>This development aligns with the Bank for International Settlements' ongoing efforts to promote cross-border CBDCs. Several pilot tests are already underway globally, including Project Sela involving the central banks of Hong Kong and Israel. Additionally, Project mBridge, which now includes central banks from China, Thailand, and the United Arab Emirates, is expanding, marking a crucial step in the exploration of the future of CBDCs on a global scale.</p>

<p>As the CBDC landscape continues to evolve, it becomes increasingly important for participating countries to clarify their national legal frameworks, particularly in cases where central banks do not currently have the authority to issue CBDCs.</p>

<p>The successful completion of Project Mariana underscores the growing interest and collaborative efforts of central banks and international organisations to understand the potential benefits and challenges posed by CBDCs in the modern financial landscape.</p>


As the CBDC landscape continues to evolve, it becomes increasingly important for participating countries to clarify their national legal frameworks, particularly in cases where central banks do not currently have the authority to issue CBDCs.

Project Mariana, developed under the guidance of the BIS, brought together the expertise of the central banks of France, Singapore, and Switzerland 

It leverages bridges to facilitate the seamless transfer of CBDCs between different networks and utilises a specific type of decentralised exchange for the automated settlement of spot foreign exchange transactions

France, Singapore & Switzerland conduct cross-border CBDC trials

France, Singapore & Switzerland conduct groundbreaking cross-border CBDC trials

Cross-border CBDC testing: France, Singapore & Switzerland collaborate

<p>In a groundbreaking move, China is allowing foreign visitors to access and use its digital yuan via the central bank's official CBDC mobile app. This development comes as part of China's efforts to showcase its Central Bank Digital Currency (CBDC) on an international stage, particularly during the ongoing Asian Games in Hangzhou.</p>

<h3>A new opportunity for foreign travelers</h3>

<p>Foreign travelers can now download the digital yuan app from app marketplaces and create e-CNY wallets online, with a minimum initial top-up requirement of 100 yuan (approximately $14). The central bank has even introduced an English-language customer services helpline and in-app chat-based help services to assist international users.</p>

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<h3>Versatility in digital payments</h3>

<p>Unlike previous events, where international athletes and coaches were encouraged to use digital yuan "hard wallets" (wearable devices and smart cards), this time, foreign visitors have the freedom to use the digital yuan not only at physical vendors but also online. They can make payments on popular platforms such as DiDi, JD.com, and Meituan. This opens up a plethora of possibilities, from ride-sharing apps to purchasing food and other goods online.</p>

<h3>Seamless transactions &amp; widespread acceptance</h3>

<p>For added convenience, travelers who have funds remaining in their e-CNY wallets upon leaving China can request a refund, with the funds being automatically transferred back to their bank accounts. Furthermore, digital yuan payments are now widely accepted, with 121 designated Asian Games hotels, 55 medical clinics, over 30 major shopping centers, and almost 80 tourist attractions in the region now offering digital yuan payment options.</p>

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<p>This initiative aligns with Beijing's ambition to make the Asian Games a showcase for the digital yuan and offers an unprecedented opportunity for foreign visitors to experience the benefits of China's CBDC. It not only simplifies transactions for international guests but also demonstrates China's commitment to modernising its financial ecosystem through digital innovation.</p>

<p>As the Asian Games continue to unfold, the world watches closely as China sets new milestones in the adoption of digital currencies, creating a more inclusive and accessible financial landscape for both its citizens and international visitors.</p>


China is setting new milestones in the adoption of digital currencies as foreign tourists in China can now purchase digital yuan tokens using their international bank cards through the official CBDC mobile app.

Foreign travelers can now download the digital yuan app from app marketplaces and create e-CNY wallets online

They can make payments on popular platforms such as DiDi, JD.com, and Meituan

Foreign visitors to China can now use CBDC app 

Digital yuan accessibility expands: Foreign visitors can now use CBDC app in China

Foreign visitors can now use CBDC app in China

<p>In a significant move that has ignited debates within the cryptocurrency space, the United States House Financial Services Committee has given its approval to a bill that seeks to prohibit the Federal Reserve from ever introducing a Central Bank Digital Currency (CBDC). The legislation, proposed by Republicans in the committee and endorsed by Rep. Patrick McHenry (R-N.C.), the committee's chairman, aims to ensure that any potential US CBDC must receive explicit authorisation from Congress. This move is touted as a measure to safeguard American citizens' privacy and the financial system from perceived risks associated with a CBDC.</p>

<h3>Divided views on the bill's implications</h3>

<p>The approval of this bill has sparked a divisive debate within the cryptocurrency community. Critics argue that it could hinder the United States' technological progress and global competitiveness, particularly in relation to China's rapid advancements in the CBDC space. Rep. Maxine Waters (D-Calif.), a prominent voice in this debate, accuses Republicans of taking an "anti-innovation stance" by stifling research and potentially preventing the United States from adopting faster, cheaper, and more efficient payment systems, even at the risk of losing the dollar's status as the world's reserve currency.</p>

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<h3>Regulatory chaos &amp; industry exodus</h3>

<p>This development occurs in the backdrop of ongoing regulatory challenges in the US cryptocurrency industry. Disputes over regulatory jurisdiction between the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) have created an atmosphere of uncertainty. As a result, several crypto companies, including industry giant Coinbase, have opted to relocate their operations outside the United States, seeking more conducive regulatory environments.</p>

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<p>While the bill has cleared the House Financial Services Committee, it still faces uncertainty as it advances to the House of Representatives, where opposition in favor of fostering technological development and innovation could lead to modifications or even the rejection of the bill. The cryptocurrency industry remains on edge, eager to see how this legislative tug-of-war will shape the future of digital assets and central bank digital currencies in the United States.</p>


The House Financial Services Committee has passed a CBDC anti-surveillance act which prevents American banks from issuing central bank digital currencies.

The said bill aims bill that seeks to prohibit the Federal Reserve from ever introducing a  CBDC Central Bank Digital Currency 

Critics argue that it could hinder the United States' technological progress and global competitiveness

US House Committee approves bill to prevent CBDC issuance 

US House Committee passes bill to prevent issuance of CBDC, sparking controversy in the crypto industry

US House Committee passes bill to prevent issuance of CBDC

<p>Russia is taking significant steps towards the integration of its Central Bank Digital Currency (CBDC), the digital ruble, with its tax system. The State Duma’s Committee on Budgets and Taxes has given its approval to a private member's bill aimed at amending the Tax Code to facilitate this integration. The proposed amendment will empower tax authorities to seamlessly incorporate the digital ruble into the country's tax regulations and control mechanisms.</p>

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<h3>Key provisions of the proposed legislation</h3>

<p>The bill introduces several critical provisions that will shape the interaction between the digital ruble and taxation.</p>

<p><strong>Digital ruble wallets: </strong>The legislation introduces the concept of "digital ruble wallets" into the Tax Code, marking a pivotal step in recognising the digital currency's official status.</p>

<p><strong>VAT exemption:</strong> Operations related to the creation and maintenance of digital ruble wallets will be exempt from Value Added Tax (VAT), encouraging the use and adoption of digital rubles.</p>

<p><strong>Transactional records: </strong>The draft law mandates that all transactions and income involving digital ruble wallets must be meticulously recorded. This requirement is expected to enhance transparency and accountability in CBDC-related financial activities.</p>

<p><strong>Judicial powers:</strong> In cases of bankruptcy and similar scenarios, the judiciary will have the authority to issue foreclosure orders on digital ruble wallets. This provision aims to ensure fairness and legal recourse in CBDC-related disputes.</p>

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<h3>Legislative timeline &amp; key figures</h3>

<p>The bill, co-authored by lawmakers Anatoly Aksakov, Olga Anufriyeva, and Senator Nikolai Zhuravlev, will be presented to the Duma on 20 September for its first reading. If it passes this initial stage, it will be re-submitted for a second reading. Upon receiving presidential approval, the legislation could come into effect as early as 1 January 2024, or possibly even sooner.</p>

<p>Anatoly Aksakov, a prominent figure in Russia's crypto legislation landscape, has highlighted the CBDC's potential for cross-border transactions, emphasising its importance on the international stage.</p>

<p>This development follows the commencement of a digital ruble pilot programme in 11 cities across Russia in mid-August. The government's efforts to integrate the digital ruble into the tax system signal a substantial stride towards the digitalisation of Russia's financial infrastructure.</p>

<p>As Russia continues to forge ahead with its CBDC project, the global financial landscape keeps a watchful eye on the implications and potential ramifications of a fully-integrated digital ruble within the tax framework.</p>


Russia's efforts to integrate the digital ruble into the tax system signal a substantial stride towards the digitalisation of Russia's financial infrastructure.

The State Duma’s Committee on Budgets and Taxes has given its approval to a bill aimed at amending the Tax Code to facilitate its integration with CBDC

The said bill will introduce concepts such as “digital ruble wallets” into the Tax Code

Russia to advance CBDC integration with tax system

Russia Advances CBDC Integration: Digital Ruble to integrate with tax system 

Russia's digital ruble to integrate with tax system 

<p>The National Bank of the Republic of Kazakhstan (NBK) has taken significant strides in its journey to develop and implement its central bank digital currency (CBDC), known as the digital tenge. In a recent announcement, the NBK introduced the establishment of the National Payment Corporation (NPC), a key entity that will oversee various aspects of the digital tenge initiative.</p>

<h3>National Payment Corporation: Paving the way for digital tenge</h3>

<p>The NPC will inherit its responsibilities from the former Kazakh Center for Interbank Payments and will play a crucial role in shaping Kazakhstan's "digital financial infrastructure." This includes overseeing interbank clearing services, digital identification, and facilitating money transfers. The formation of the NPC is a strategic move by the NBK to centralise and streamline efforts related to the digital tenge, with the aim of ensuring its successful implementation.</p>

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<h3>Binance collaboration fuels CBDC pilot programme</h3>

<p>Kazakhstan's CBDC pilot programme is currently underway, with real consumers and merchants participating in a controlled environment. Notably, Binance, the world's largest cryptocurrency exchange, is a key partner in this endeavor. Binance is actively supporting the pilot program with its technical solution, the BNB chain. This collaboration bridges the gap between traditional finance and the rapidly evolving realm of cryptocurrencies, allowing users to seamlessly transfer fiat funds to their Binance accounts.</p>

<h3>Digital Tenge: Transforming financial inclusion &amp; trade</h3>

<p>The digital tenge project envisions a synergy between conventional financial systems and the world of decentralised finance (DeFi), aiming to create a more inclusive financial landscape. This CBDC will act as a digital representation of Kazakhstan's national currency, facilitating faster and cost-effective cross-border transactions. The involvement of Binance, renowned for its expertise in digital asset management, is expected to significantly contribute to the success of the digital tenge.</p>

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<p>The establishment of the National Payment Corporation and the collaboration with Binance mark significant milestones in the development of the digital tenge. This CBDC initiative has the potential to reshape Kazakhstan's financial landscape, foster collaboration between traditional finance and DeFi, and enhance financial inclusion and international trade opportunities. As the pilot phase progresses and the 2025 implementation deadline approaches, global observers eagerly await the outcome of this ambitious venture.</p>


Kazakhstan's setting up of the National Payment Corporation and the collaboration with Binance mark significant milestones in the development of the digital tenge. 

In a recent announcement, the NBK introduced the establishment of the National Payment Corporation

The formation of the NPC is a strategic move by the country to centralise and streamline efforts related to the digital tenge

Kazakhstan launches regulatory body for CBDC implementation

Kazakhstan establishes regulatory body for CBDC implementation, partners with Binance

Kazakhstan establishes regulatory body for CBDC implementation

<p>Swift, the interbank cooperative, is making significant strides in the world of Central Bank Digital Currencies (CBDCs) as it enters the second phase of its interoperability testing. Collaborating with three central banks and over 30 financial institutions, including the Hong Kong Monetary Authority (HKMA) and the National Bank of Kazakhstan, Swift is pioneering a groundbreaking method to bridge CBDCs with existing fiat-based infrastructures.</p>

<h3>Phase one success &amp; the next frontier</h3>

<p>Building upon the findings of a 12-week sandbox testing period that involved simulating nearly 5,000 transactions between blockchain networks and fiat-based systems, Swift has pushed forward into its beta phase. In this crucial step, central banks and monetary authorities are integrating Swift's solution into their infrastructures for direct testing. The beta solution has progressed further, with direct testing now underway as three central banks and monetary authorities, among them the Hong Kong Monetary Authority (HKMA) and the National Bank of Kazakhstan, have integrated the solution into their own infrastructure.</p>

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<p>Furthermore, Swift has commenced the second phase of sandbox testing, where an expanded group of over 30 prominent institutions, including commercial banks, central banks, and financial market infrastructures, are actively exploring supplementary use cases. These include trigger-based payments for digital trade platforms, foreign exchange models, delivery versus payment, and mechanisms for saving liquidity. Participants in this phase include the Reserve Bank of Australia, Deutsche Bundesbank, HKMA, Bank of Thailand, and CLS.</p>

<h3>Interoperability: The key focus</h3>

<p>Swift's Chief Innovation Officer, Tom Zschach, underscores the significance of interoperability in this endeavor. He explains, "Our focus is on interoperability - ensuring that new digital currencies can seamlessly coexist with each other and with today's fiat-based currencies and payment systems." Swift aims to prevent the emergence of digital islands and establish a secure bridge between current payment systems and the future.</p>

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<h3>Countering fragmentation</h3>

<p>With 130 countries, representing 98% of global GDP, exploring CBDCs and 19 G20 nations already in advanced stages of development, the potential for a fragmented CBDC landscape looms. Swift, however, is strategically prioritising interoperability to ensure CBDCs and tokenised assets can scale seamlessly within the financial ecosystem.</p>

<p>As the world rapidly advances towards digital currencies, Swift's pioneering work in CBDC interoperability emerges as a critical solution to prevent fragmentation, facilitating a smoother transition into the digital financial era. The financial community is eagerly watching as this innovative cooperative continues to refine and expand its solution, forging a path towards a globally connected CBDC ecosystem.</p>


As the world rapidly advances towards digital currencies, Swift's pioneering work in CBDC interoperability emerges as a critical solution to prevent fragmentation, facilitating a smoother transition into the digital financial era. 

Swift has commenced the second phase of sandbox testing

Several central banks and monetary authorities are integrating Swift's solution into their infrastructures for direct testing

Swift commences beta tests of CBDC connector

Swift advances CBDC interoperability testing into second phase

Swift's CBDC testing enters second stage

<p>The Reserve Bank of India (RBI) is set to revolutionise the Indian financial landscape by integrating Central Bank Digital Currency (CBDC) into the call money market, marking a significant step towards digital financial innovation. Furthermore, India aims to showcase its digital prowess on the global stage during the G20 leadership summit, emphasising the internationalisation of its payment systems.</p>

<p>As revealed by a senior official, the central bank planning to allow the use of Central Bank Digital Currency (CBDC) in the call money market. This strategic move reflects India's commitment to modernise its financial ecosystem by harnessing the power of CBDC technology.</p>

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<h3>CBDC pilot progress</h3>

<p>India's CBDC is currently undergoing a pilot phase in both retail and wholesale segments, with a target of achieving one million transactions per day by the end of 2023. CBDC's integration in government bond transactions commenced in November of the previous year, demonstrating the central bank's commitment to exploring innovative payment solutions.</p>

<h3>Current UPI acceptance</h3>

<p>India aims to elevate the global acceptance of its digital payment systems, including the Unified Payments Interface (UPI) and Rupay cards. Discussions and negotiations are underway with numerous countries, extending beyond India's traditional regional partners to encompass nations in Latin America and Africa. The goal is to make UPI a universally recognised payment product accessible in countries worldwide.</p>

<p>As of now, countries like Singapore, United Arab Emirates, France, the UK, Saudi Arabia, Bahrain, Maldives, Bhutan, and Oman already allow Indians to make payments using UPI, highlighting the growing global reach of India's digital financial products.</p>

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<h3>Digital showcase at G20</h3>

<p>RBI will present an array of digital initiatives in the financial sector at the G20 Summit's exhibition pavilion. These include the Public Tech Platform (PTP) for Frictionless Credit, CBDC, UPI One World, RuPay On-The-Go, and the Bharat Bill Payment System. This platform provides India with the opportunity to showcase its technological advancements on the international stage.</p>

<p>The RBI's decision to introduce CBDC in the call money market and its efforts to expand the global footprint of UPI and Rupay signify India's commitment to fostering a digital-first financial ecosystem. By participating in the G20 Summit, India aims to position itself as a leading innovator in the digital finance sphere, showcasing its cutting-edge solutions to the world.</p>


RBI is aiming to expand CBDC use cases to call money market for inter-bank transactions, signifyingIndia's commitment to fostering a digital-first financial ecosystem



The central bank planning to allow the use of Central Bank Digital Currency in the call money market

It will present an array of digital initiatives in the financial sector at the G20 Summit's exhibition pavilion

RBI plans to introduce CBDC in call money market

RBI plans to introduce CBDC in call money market, aims to showcase its digital products at G20 

<p>In a keynote address at the G20 TechSprint Finale, Reserve Bank of India (RBI) Governor Shaktikanta Das emphasised the transformative potential of <a href="https://www.web3cafe.in/emerging-tech/cbdc">central bank digital currencies</a> (CBDCs) in addressing the longstanding challenges of high costs and slow processing times associated with cross-border payments.</p>

<h3>High costs &amp; slow Speed: A global concern</h3>

<p>Governor Das shed light on the persistent issues plaguing cross-border payments, including exorbitant costs, sluggish transaction speeds, limited access, and a lack of transparency. These challenges have hindered the efficiency of international trade and financial inclusion, affecting economies and individuals worldwide.</p>

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<h3>CBDCs: A solution to cross-border woes</h3>

<p>Das asserted that CBDCs could be the game-changer needed to alleviate these challenges. He cited the instant-settlement feature of CBDCs as a key factor that could revolutionise cross-border payments by making them more affordable, faster, and secure. Under India's G20 presidency, the G20 TechSprint focused on "Technology solutions for cross-border payments," signaling the growing importance of CBDCs in the global financial landscape.</p>

<blockquote class="twitter-tweet">
<p dir="ltr" lang="de">Keynote Address by RBI Governor Shri Shaktikanta Das at Grand Finale of the G20 TechSprint 2023 <a href="https://t.co/Zh698gLW7v">https://t.co/Zh698gLW7v</a></p>
— ReserveBankOfIndia (@RBI) <a href="https://twitter.com/RBI/status/1698674073788911967?ref_src=twsrc%5Etfw">September 4, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

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<h3>RBI's ongoing initiatives</h3>

<p>The RBI has been proactive in exploring the potential of CBDCs. Last year, the central bank initiated two CBDC pilot projects, catering to both retail and wholesale segments. Governor Das revealed that the pilot programs were gradually expanding to involve more banks, cities, individuals, and diverse use cases. He stressed the significance of empirical data generated through these initiatives, suggesting that it would inform future policies and actions related to CBDCs.</p>

<div id="tab-link-wrapper-plugin">
<div class="heading-text">Also Read</div>

<ul class="tab-link">
	<li class="editor-readmore"><a class="editor-rel-content" href="https://www.web3cafe.in/emerging-tech/cbdc/story/rbi-assigns-daily-target-of-1-million-erupee-transactions-to-banks-by-the-end-of-the-year-624769-2023-08-01">RBI sets CBDC expansion goals for banks, targets 1 million daily transactions by year-end</a></li>
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<h3>Digital payments revolution in India</h3>

<p>Governor Das also praised India's Unified Payments Interface (UPI) as a pivotal development that has transformed the nation's digital payment ecosystem. UPI has facilitated over 10 billion transactions per month and has played a crucial role in bringing millions of unbanked individuals into the formal financial system. More than 70 mobile apps and over 50 million merchants now accept UPI payments, demonstrating its widespread adoption and impact on financial inclusion.</p>

<p>In conclusion, Governor Shaktikanta Das emphasised that CBDCs hold immense promise in addressing cross-border payment challenges, with the potential to drive economic growth, international trade, and financial inclusion. As the RBI continues to expand its CBDC pilot programs, it is poised to shape the future of digital finance not only in India but also on the global stage.</p>


The RBI governor emphasised that CBDCs hold immense promise in addressing cross-border payment challenges, with the potential to drive economic growth, international trade

Governor Das highlighted the potential of CBDCs in revolutionising cross-border payments

He stated that pilot programmes are gradually expanding to involve more banks, cities, individuals, and diverse use cases

RBI governor highlights CBDC's potential to improve cross-border payments

RBI chief sees CBDC as a game-changer in improving cross-border payments

CBDCs to revolutionise cross-border payments: RBI governor

<p>India's largest lender, the State Bank of India (SBI), has announced a significant development in its digital currency initiative. As of 4 September 2023, SBI's eRupee wallet now supports interoperability with the Unified Payments Interface (UPI), offering customers enhanced convenience for in-store transactions.</p>

<h3>SBI bridges the gap with UPI compatibility</h3>

<p>In a move aimed at delivering greater convenience and accessibility to its customers, the State Bank of India has introduced UPI interoperability for its digital rupee, known as e₹ or Central Bank Digital Currency (CBDC). Users can access this feature through the 'eRupee by SBI' application, empowering them to scan any merchant's UPI QR code for transactions.</p>

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<p>SBI believes that this integration will be a game-changer within the digital currency ecosystem. The bank remains committed to providing secure, efficient, and user-friendly solutions that redefine the way transactions are conducted in the digital age.</p>

<h3>SBI's journey in the CBDC Space</h3>

<p>SBI has been actively involved in the development of the CBDC ecosystem in India. The bank was among the first to participate in the Reserve Bank of India's (RBI) retail digital e-rupee project in December 2022.</p>

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<p>The RBI initiated the first pilot of the digital rupee last year, initially in the wholesale segment and later expanding it to the retail segment. The retail digital rupee, known as e₹-R, is designed for day-to-day transactions, bringing digital currency into the daily lives of Indian consumers.</p>

<p>Eight banks, including SBI, ICICI Bank, Yes Bank, IDFC First Bank, Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank, are participating in the retail pilot project. Customers and merchants are invited to test the services through mobile applications, enabling peer-to-peer and peer-to-merchant transactions.</p>


With the introduction of UPI compatibility, SBI's eRupee wallet takes a significant step towards fostering a seamless digital currency ecosystem in India, offering customers a modern and secure way to conduct transactions.

SBI's eRupee wallet now supports interoperability with the UPI, starting 4 September

This move is aimed at delivering greater convenience and accessibility to its customers

SBI's eRupee wallet offers UPI compatibility for seamless transactions

SBI's eRupee wallet revolutionises shopping with UPI Integration

<p>Elon Musk's venture, X, has secured a currency transmitter license in a US state, suggesting imminent support for <a href="https://www.web3cafe.in/cryptocurrency">cryptocurrency</a> transactions alongside traditional fiat currencies on the microblogging platform, previously known as Twitter.</p>

<p>The licence, granting the authority to facilitate custody, transfer, and exchange of digital currencies, marks a significant step in Musk's vision of transforming X into an all-encompassing app.</p>

<p>His goal is to create a platform that not only enables communication and content sharing but also facilitates seamless payments.</p>

<h3>Rhode Island licence marks progress</h3>

<p>X's acquisition of a currency transmitter licence in Rhode Island aligns with legal requirements for money transfer operations in the United States. Although the payments feature initially might support only fiat currency transactions, later stages of the upgrade could incorporate cryptocurrency transfers and exchanges.</p>

<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">🧵 1/4<br />
<br />
The popular social media platform X (formerly Twitter) is set to introduce cryptocurrency payments to its nearly 450M active users. X recently obtained a Rhode Island Currency Transmitter License, allowing it to store, transfer, and exchange digital assets. <a href="https://t.co/EK8huDrSBy">pic.twitter.com/EK8huDrSBy</a></p>
— 0x.daVinci (💙,🧡) (@0x_daVincii) <a href="https://twitter.com/0x_daVincii/status/1696733480011653372?ref_src=twsrc%5Etfw">August 30, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<p>This development has triggered a positive response in the cryptocurrency market. Overnight, the crypto sector's valuation surged by four percent, reaching a total market value of $1.09 trillion (approximately Rs. 90,07,269 crore) according to reports.</p>

<p>Musk's favoured alternative cryptocurrency, <a href="https://www.web3cafe.in/cryptocurrency/memecoins">Dogecoin</a>, also experienced a three percent value increase, trading at $0.066 (about Rs. 5.42). Interestingly, Musk himself has refrained from commenting on the licence acquisition.</p>

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<h3>Wider adoption: Licence approval across multiple US states</h3>

<p>Notably, Rhode Island isn't the sole US state granting X the money transmitter license. This year, states like Michigan, Missouri, and New Hampshire, among others, have already approved the permit for X.</p>

<p>Rhode Island becomes the seventh state to do so, further emphasising the platform's commitment to expanding its services across the country.</p>

<p>In short, Elon Musk's X has taken a crucial step towards integrating cryptocurrency transactions into its microblogging platform.</p>

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</ul>

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<p>With the license in hand, X aims to reshape online interactions by combining communication, content sharing, and seamless payment processing. The positive market response and multi-state license approvals underscore the growing recognition of X's innovative approach in the evolving landscape of digital currencies.</p>


Elon Musk's X secures licence for cryptocurrency transactions, signalling the potential for crypto and fiat payments on the platform. X aims to become an all-in-one app for communication, content sharing, and transactions.

This licence grants the authority to facilitate the custody, transfer, and exchange of digital currencies

This development has triggered a positive response in the cryptocurrency market

The microblogging site aims to reshape online transactions by combining with communication

Elon Musk's X accqiures license for currency transactions

Elon Musk's X secures licence for currency transactions, could crypto be one of the payment option?

Elon Musk’s X to blend communication with online transactions, gets license

<p>Australia's central bank, the Reserve Bank of Australia (RBA), has announced a delay in making a decision regarding a <a href="https://www.web3cafe.in/emerging-tech/cbdc">Central Bank Digital Currency</a> (CBDC). This decision comes in the wake of several unresolved issues that emerged during the conclusion of the pilot project. The RBA stated that due to these outstanding concerns, it is likely to be several years before any decision on a CBDC is reached.</p>

<h3>A complement to private sector innovation</h3>

<p>The report released by the RBA suggests that a CBDC could be seen as an "enabling complement" to private sector innovations rather than a substitute for them. The primary focus of the pilot project was to explore how a CBDC could enhance the functionality of the payments system within the industry. It did not aim to provide a comprehensive assessment of the costs, benefits, risks, and other implications of introducing a CBDC.</p>

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<h3>Challenges &amp; findings</h3>

<p>While the research indicated that an Australian CBDC could potentially support offline electronic payments and enable more complex and cost-effective transactions, it also highlighted significant challenges. These include issues related to legal, regulatory, technical, and operational aspects. Affordable and secure solutions for key management, especially for companies not operating on other Distributed Ledger Technology (DLT) networks, were identified as a hurdle.</p>

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<p>Moreover, integrating a CBDC platform with industry use case applications proved to be challenging, with implications for potential deployment models. Privacy concerns, a global issue associated with CBDCs, remained unanswered in the Australian context. Designing solutions that effectively balance privacy and data sharing needs on a single CBDC platform was deemed complex and warranting further research.</p>

<h3>A prudent approach to CBDC</h3>

<p>Australia's decision to delay the CBDC rollout underscores the cautious approach taken by central banks worldwide in adopting digital currencies. While CBDCs hold promise in revolutionizing the financial landscape, the unresolved challenges and privacy considerations necessitate thorough examination before implementation.</p>


Following the official conclusion of pilot project on CBDCs, the Reserve Bank of Australia is of the opinion that though a digital Australian dollar has the potential to support enhanced efficiency in few areas of the payments system, still more research is required.

The primary focus of the pilot project was to explore how a CBDC could enhance the functionality of the payments system within the industry

The report highlighted significant challenges related to to legal, regulatory, technical, and operational aspects

Australia's central bank delays CBDC decision 

Australia's central bank believes CBDC is 'still years away', delays eAUD digital currency launch amid unresolved issues

Australia's CBDC decision postponed for several years

<p>Canara Bank has taken a significant step towards advancing India's digital economy by launching the UPI Interoperable Digital Rupee mobile application as part of the Reserve Bank of India's (RBI) CBDC pilot project. This pioneering move establishes Canara Bank as the first institution, both in the public and commercial sectors, to provide this feature through its CBDC mobile app, the Canara Digital Rupee app.</p>

<h3>Simplifying digital transactions with Canara Digital Rupee app</h3>

<p>With the introduction of this groundbreaking feature, Canara Bank's customers can seamlessly scan merchant UPI QR codes using the Canara Digital Rupee app and conduct transactions using digital currency. Notably, this innovation also allows merchants to accept digital currency payments via their existing UPI QR codes, eliminating the need for a separate onboarding process for CBDC.</p>

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<p>The Canara Digital Rupee app empowers users to load currency into their CBDC wallet by debiting their linked account, redeem digital currency, and credit the amount back to their linked account. Moreover, it facilitates hassle-free currency transfers to any individual possessing a CBDC wallet and enables secure payments through CBDC QR-based transactions.</p>

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<h3>Canara Bank CEO hails the dawn of a digital currency era</h3>

<p>K. Satyanarayana Raju, the Managing Director and CEO of Canara Bank, praised the launch of the mobile application featuring UPI interoperability as a groundbreaking move towards digitalising the Indian economy. He emphasised that this innovation allows customers to experience the benefits of rapid and secure transactions with digital currency endorsed by the RBI.</p>

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<p>The Canara Bank Digital Rupee mobile application is now accessible to both Android and iOS users, offering a user-friendly platform for digital currency transactions. Importantly, the digital currency carried by the app holds legal tender status as per RBI regulations, marking a significant stride toward embracing digital currency within India.</p>


Canara Bank becomes the first bank to launch of the UPI Interoperable Digital Rupee mobile application, thereby demonstrating its commitment to enhance the ease of digital transactions for its customers and playing a pioneering role in shaping India's digital financial future.

Canara Bank introduces a groundbreaking feature, thus playing a pioneering role in shaping India's digital financial future

Now, the bank's customers can seamlessly scan merchant UPI QR codes using the Canara Digital Rupee app and conduct transactions using digital currency

The Canara Digital Rupee app

Canara Bank launches UPI interoperable Digital Rupee app, a threat to Paytm & Google Pay?

Canara Bank launches UPI interoperable Digital Rupee app

<p>Leading financial technology company, Mastercard, has unveiled its Central Bank Digital Currency (CBDC) partner programme, aimed at fostering collaboration within the digital currency ecosystem. The program includes notable firms like Ripple, ConsenSys, and Fireblocks as initial participants, all poised to engage in discussions about CBDC issuance, security, privacy, and interoperability.</p>

<h3>Addressing the growing CBDC ecosystem</h3>

<p>The CBDC partner programme, a significant initiative by Mastercard, comes as central banks globally are actively exploring digital currency solutions. According to the Bank for International Settlements, several retail versions of CBDCs are already in full circulation, with most central banks dedicating resources to CBDC development. In response to this burgeoning trend, Mastercard constructed a virtual testing platform in 2020, designed to aid central banks in assessing and experimenting with national digital currencies. Since then, the company has collaborated with various central banks on pilot projects to further this agenda.</p>

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<h3>Industry collaboration for innovation</h3>

<p>Jesse McWaters, Mastercard's leader of global regulatory advocacy, highlights pertinent questions surrounding the role of the private sector in CBDC issuance, as well as matters of security, privacy, and interoperability. These questions underscore the need for collective input from industry players to shape the future of digital currencies. The CBDC partner programme aims to bridge this gap by facilitating discussions between influential entities within the field. Raj Dhamodharan, Mastercard's head of digital assets and blockchain, asserts that collaboration will be instrumental in driving innovation and efficiencies.</p>

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<h3>Mastercard's continued leadership in CBDC space</h3>

<p>Mastercard's history of innovation in the digital asset sector, particularly within the CBDC realm, is well-established. In early 2021, the company made waves by introducing a prepaid card tailored for users in the Bahamas seeking to utilise the country's CBDC. This marked the first instance of a CBDC-linked prepaid card, showcasing Mastercard's commitment to pushing the boundaries of digital currency applications.</p>


As the financial landscape continues to evolve towards digitalisation, Mastercard's CBDC partner programme emerges as a pivotal step towards informed, collaborative decision-making. 

The said programme is aimed at fostering collaboration within the digital currency ecosystem

It also includes prominent industry names like Ripple, ConsenSys, and Fireblocks 

Mastercard launches CBDC partner programme 

Mastercard launches CBDC partner programme to foster industry collaboration

<p>In a significant stride towards modernising its financial ecosystem, Russia's central bank, The Bank of Russia, has unveiled plans to launch a pilot program for its central bank digital currency (CBDC) on 15 August.</p>

<h3>Pilot programme unveiled: Testing waters with select participants</h3>

<p>The eagerly anticipated pilot which is poised to test the digital ruble's viability and functionality, will see the participation of 13 prominent banks in 11 cities across Russia, marking a crucial phase in Russia's exploration of a Digital Ruble.</p>

<p>However, this stage will be limited to a specific group of customers of these selected banks.</p>

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<h3>Progressive phases: From refinement to comprehensive adoption</h3>

<p>The inaugural phase of the pilot program will primarily focus on streamlining essential processes, including the establishment and funding of digital ruble accounts, peer-to-peer digital ruble transactions, as well as automated payments. Notably, a QR code-based system will facilitate seamless transactions for purchases and services, ensuring user convenience.</p>

<p>Further, the pilot program will broaden its functionality towards the end of 2023, which would include dynamic QR codes, transfers between legal entities as well as additional support for auto payments. Also, the programme will expand its user base, making it accessible to both individuals and corporations, aiming to meet a broader array of financial needs.</p>

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<h3>Roadmap for widespread integration</h3>

<p>Olga Skorobogatova, the First Deputy Governor of the Bank of Russia, emphasised the significance of the pilot operations in assessing the digital ruble platform's functionality and refining operational procedures. The pilot phase serves as a pivotal bridge to realising the bank's overarching strategy: the widespread use of the Digital Ruble. This strategy hinges on the outcomes of extensive testing, aiming to address all potential operational scenarios involving the Digital Ruble.</p>

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<p>As per Skorobogatova's insights, citizens and businesses can anticipate active usage of the national digital currency at their discretion starting from 2025. The successful execution of comprehensive trials and gradual testing will shape the eventual integration of the digital ruble into daily financial transactions.</p>


Russia's journey toward a digital ruble is poised to transform the country's financial landscape. With this pilot programme, the nation is setting a course for a digital currency future that promises efficiency, convenience, and enhanced financial capabilities.

The eagerly anticipated pilot will see the participation of 13 prominent banks 

Starting from 2025, citizens and businesses can anticipate active usage of the national digital currency at their discretion 

Russia to commence its CBDC Pilot on 15 August

Russia inspired by India's CBDC aspirations, its central bank set to begin pilot programme on 15 Aug

Russia set to begin CBDC pilot programme on 15 Aug

<p>The Reserve Bank of India (RBI) has set ambitious targets for its under-trial <a href="https://www.web3cafe.in/emerging-tech/cbdc">Central Bank Digital Currency</a> (CBDC), the eRupee, aiming to achieve one million daily transactions by December. The country's CBDC initiative has been in progress for over two years, and last year, India introduced its first-ever national digital currency in pilot mode for testing.</p>

<p>To accelerate the adoption of the eRupee, RBI is reportedly giving targets to banks, requiring them to facilitate a minimum number of transactions using the CBDC. Despite initial skepticism from Indian banks about the limited use cases for eRupee, they are now directed by the RBI to ensure that selected users can conduct daily purchases with digital currency.</p>

<h3>Banks involved in CBDC trials &amp; rewards for meeting targets</h3>

<p>Several prominent state-owned and private banks, including State Bank of India, Bank of Baroda, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, and Yes Bank, are actively participating in the ongoing CBDC trials alongside the RBI.</p>

<p>Once the banks meet their assigned targets for eRupee transactions, they will become eligible for rewards approved by the government, encouraging them to actively promote and integrate digital currency into their services.</p>

<h3>Advantages of eRupee &amp; integration with UPI QR codes</h3>

<p>CBDCs, like eRupee, function similarly to cryptocurrencies but are regulated and issued by central banks. These digital currencies not only enhance online payment systems but also aim to reduce reliance on physical cash notes, promoting a more digital and cashless economy.</p>

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	<li class="editor-readmore"><a class="editor-rel-content" href="https://www.web3cafe.in/emerging-tech/cbdc/story/rbi-set-to-integrate-erupee-cbdc-payments-via-upi-qr-codes-by-july-end-621448-2023-07-27">RBI set to integrate eRupee CBDC payments via UPI QR codes by July end</a></li>
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<p>As part of the ongoing trials, the eRupee CBDC is equipped with the capability to interact with existing Unified Payments Interface (UPI) QR codes in India. This feature will allow test users to process payments with digital currency by simply scanning the widely-used QR codes.</p>

<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">India's <a href="https://twitter.com/hashtag/eRupee?src=hash&amp;ref_src=twsrc%5Etfw">#eRupee</a> <a href="https://twitter.com/hashtag/CBDC?src=hash&amp;ref_src=twsrc%5Etfw">#CBDC</a> to revolutionise payments with <a href="https://twitter.com/hashtag/UPI?src=hash&amp;ref_src=twsrc%5Etfw">#UPI</a> QR code integration! This would open doors to a more secure, efficient, and cash-independent future of payments.<a href="https://t.co/4nfSLxeqvZ">https://t.co/4nfSLxeqvZ</a></p>
— Web3Cafe (@WebThreeCafe) <a href="https://twitter.com/WebThreeCafe/status/1684480209347641344?ref_src=twsrc%5Etfw">July 27, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<p>As of June 2023, CBDC transactions were carried out by 1.3 million customers and 0.3 million merchants, showcasing an increasing trend in the adoption of the eRupee, according to RBI Deputy Governor T Rabi Sankar.</p>

<h3>Global adoption of CBDCs</h3>

<p>The Bank for International Settlements (BIS) conducted a survey, indicating that nearly two dozen central banks across emerging and advanced economies are projected to have digital currencies in circulation by the end of the decade.</p>

<p>This demonstrates the growing interest in CBDCs and their potential impact on global financial systems. India's journey toward a successful CBDC implementation has seen significant progress, with the eRupee garnering substantial transactions and engagement.</p>

<p>By setting targets for banks and ensuring active involvement in the ongoing trials, the RBI is driving the adoption of eRupee and pushing the country closer to a future with digital currencies at the forefront of its financial ecosystem. With several other countries also exploring the potential of CBDCs, the global financial landscape is bound to witness transformative changes in the coming years.</p>


The RBI is promoting eRupee adoption, pushing India towards a digital currency future. As other countries explore CBDCs, transformative changes in the global financial landscape are imminent.


RBI drives eRupee adoption  by assigning  targets to banks

Banks meeting eRupee targets will be eligible for rewards from the government

The exploration of CBDCs worldwide will lead to a transformative financial landscape

 RBI assigns daily 1 million eRupee transaction target 

RBI sets CBDC expansion goals for banks, targets 1 million daily transactions by year-end 

RBI assigns daily 1 million eRupee transaction target to banks by December

<p>A recent global survey conducted by the CFA Institute on central bank digital currencies (CBDCs) has unveiled a remarkable surge of interest in adopting CBDCs, with India and China leading the charge. According to the 'Global Survey on Central Bank Digital Currencies,' 42 percent of respondents worldwide showed support for central banks introducing CBDCs, with the Asia-Pacific region displaying the highest receptivity to this digital innovation.</p>

<h3>India and China at the forefront of CBDC adoption</h3>

<p>The survey revealed that the Asia-Pacific region, particularly India and China, has shown significant interest in CBDCs, with 66 percent and 70 percent of respondents in favour of launching CBDCs in India and China, respectively. This growing enthusiasm can be attributed to the pursuit of financial inclusion and stability in these economies.</p>

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</ul>

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<h3>A peek at the CBDC initiatives in India and China</h3>

<p>In India, the CBDC initiative, eRupee, has been undergoing pilot testing since December 2022. The Reserve Bank of India (RBI) is actively collaborating with multiple lenders and retailers to explore the practical applications of the eRupee. The RBI's plan to enable CBDC payments using the existing Unified Payments Interface (UPI) QR codes aims to pave the way for seamless adoption and integration into the existing financial system.</p>

<p>China's CBDC, e-CNY, has already seen implementation in various cities. The Chinese government has been diligently testing its use cases, including salary payments for government employees and gifting e-CNY on special occasions. This proactive approach is helping China position itself at the forefront of CBDC adoption.</p>

<h3>Enhancing financial inclusion and improving services</h3>

<p>The survey indicated that the primary motivation behind exploring CBDCs was to facilitate faster payments and transfers, a pressing need in today's digital age. Various financial institutions, including asset management firms, investment firms, brokerage firms, commercial banks, IT firms, and insurance providers, have expressed favorable views toward CBDCs. They believe that these digital currencies could potentially enhance financial inclusion and improve the efficiency of financial services.</p>

<p>&nbsp;</p>


With the rising momentum of the CBDC revolution, the survey findings suggest that India and China are set to play pivotal roles in shaping the future of digital currencies. 

India and China are leading the charge of CBDC revolution, reveals a recent global survey

This growing enthusiasm can be attributed to the pursuit of financial inclusion and stability in these economies

India & China spearhead CBDC adoption

India & China spearhead CBDC adoption, focusing on financial inclusion & stability: CFA Institute survey

India & China spearhead CBDC adoption: CFA Institute survey

<p>Global investment giant BlackRock is set to expand its footprint in India through a strategic partnership with Jio Financial Services (JFS), a subsidiary of Reliance Industries, led by Indian tycoon Mukesh Ambani. The collaboration, named ‘Jio BlackRock,’ was officially announced on 26 July and is a 50:50 joint venture, with each company committing up to $150 million to the project.</p>

<p>The primary objective of the "Jio BlackRock" joint venture is to provide millions of Indian investors with accessible and affordable investment solutions through cutting-edge technology. By combining BlackRock's expertise in investment management, technology, operations, and market intelligence with JFS's local market insights, digital infrastructure, and execution capabilities, the partnership aims to create a unique offering for the Indian market.</p>

<p>JFS CEO Hitesh Sethia stated:</p>

<blockquote class="at-quotes">
<p>“The partnership will leverage BlackRock’s deep expertise in investment and risk management along with the technology capability and deep market expertise of JFS to drive digital delivery of products.”</p>

<div class="author">JFS CEO, Hitesh Sethia</div>
</blockquote>

<h3>An unprecedented player in the Indian investment landscape</h3>

<p>The alliance between BlackRock and Jio Financial Services will introduce a powerful player with unprecedented scope, scale, and resources to the Indian investment landscape. This synergy is expected to be a game-changer in terms of providing innovative financial products and services to a broader audience in the country.</p>

<blockquote class="twitter-tweet">
<p dir="ltr" lang="en"><a href="https://twitter.com/hashtag/Dojo?src=hash&amp;ref_src=twsrc%5Etfw">#Dojo</a> is a supercomputer designed and built by <a href="https://twitter.com/hashtag/Tesla?src=hash&amp;ref_src=twsrc%5Etfw">#Tesla</a>. It will be used to train Tesla's machine learning models to improve its Full Self-Driving (<a href="https://twitter.com/hashtag/FSD?src=hash&amp;ref_src=twsrc%5Etfw">#FSD</a>). It is expected to be one of the most powerful supercomputers in the world, with a theoretical peak performance of 1.8 exaflops <a href="https://t.co/DzxvOpHulP">pic.twitter.com/DzxvOpHulP</a></p>
— Moe (@momoe889) <a href="https://twitter.com/momoe889/status/1683331764251500548?ref_src=twsrc%5Etfw">July 24, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<p>Before the launch of the joint venture, both companies are required to obtain regulatory and statutory approvals. While the announcement emphasised a "digital-first offering" for India, there were no explicit mentions of plans for cryptocurrencies like Bitcoin or other digital assets. The companies have yet to respond to queries regarding this matter.</p>

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<h3>BlackRock's cryptocurrency influence and ETF pursuits</h3>

<p>It is worth noting that BlackRock has made significant moves in the cryptocurrency space, fueling bullish sentiment in the market. Recently, the company filed an application for a spot Bitcoin exchange-traded fund (ETF) in the United States, signalling its interest in incorporating digital assets into its investment offerings.</p>

<p>This development comes after BlackRock's analysts previously recommended an optimal investment allocation that includes a substantial 84.9 percent allocation to BTC, alongside stocks and real estate.</p>

<h3>Looking Ahead: Awaiting the Launch of ‘Jio BlackRock’</h3>

<p>As the ‘Jio BlackRock’ joint venture awaits regulatory approval, market participants and investors in India are eagerly anticipating the launch of this innovative platform. With BlackRock's global presence and Jio Financial Services' strong domestic foothold, the partnership holds the potential to transform and democratise the investment landscape in India, opening up new opportunities for a diverse range of investors seeking tech-enabled financial solutions.</p>


BlackRock and Jio Financial Services unite in a groundbreaking $300 million partnership, 'Jio BlackRock,' set to transform India's investment scene with innovative digital solutions.


BlackRock has made significant moves in the cryptocurrency space, fueling bullish sentiment in the market

Before the launch of the joint venture, both companies are required to obtain regulatory and statutory approvals

BlackRock and Jio Financial Services to Launch ‘Jio BlackRock’ Joint Venture 

BlackRock & Jio Financial Services to Launch ‘Jio BlackRock’ Joint Venture for Innovative Investment Solutions in India

BlackRock & Jio to Launch ‘Jio BlackRock’ for financial services

<p>India is on the verge of taking a significant step forward in its digital currency journey, with the Reserve Bank of India (RBI) preparing to enable eRupee central bank digital currency (CBDC) payments through existing Unified Payments Interface (UPI) QR codes. The move is expected to streamline the use of India's national digital currency and revolutionise the country's online payment landscape.</p>

<h3>Interoperability enhances CBDC experience</h3>

<p>The RBI's plan to integrate eRupee CBDC payments with UPI QR codes has been a long-awaited development. With UPI scanners already widely utilised for instant online transactions across the nation, the acceptance of CBDC payments through these codes is expected to bring unprecedented convenience to users. Once deployed, retailers embracing India's CBDC as a payment option will simply need to extend their existing QR codes to customers, enabling seamless and swift CBDC transactions.</p>

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<div class="heading-text">Also Read</div>

<ul class="tab-link">
	<li class="editor-readmore"><a class="editor-rel-content" href="https://www.web3cafe.in/emerging-tech/cbdc/story/vladimir-putin-approves-cbdc-implementation-russia-to-launch-digital-ruble-next-month-620251-2023-07-25">Vladimir Putin approves CBDC implementation, Russia to launch Digital Ruble in August</a></li>
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<h3>Anticipated announcement &amp;&nbsp;participation</h3>

<p>Representatives from the RBI recently shared their plans during a G20 event, stating that the capability to facilitate CBDC payments via UPI QR codes will be launched by the end of this month. This eagerly awaited announcement is poised to create a buzz in the financial and retail sectors. As the launch date approaches, large state-owned and private banks, including State Bank of India, Bank of Baroda, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, and Yes Bank, continue to actively participate in ongoing CBDC trials, demonstrating their commitment to this transformative digital currency initiative.</p>

<h3>Real-life retail testing &amp;&nbsp;growing acceptance</h3>

<p>A select group of small, medium, and large merchants are currently collaborating with the RBI to conduct real-life retail tests of CBDC transactions. Their involvement is pivotal in assessing the feasibility and efficiency of CBDC adoption in practical scenarios. Additionally, notable Indian billionaire, Mukesh Ambani's retail chain has been accepting CBDC payments in Mumbai since February 2023, showcasing growing confidence in the digital currency.</p>

<p>It must be noted that RBI Governor, Shaktikanta Das, believes that CBDCs will bring about a fundamental shift in the existing currency system. He predicts that CBDCs, much like UPI's popularity in India, will gain global recognition and prominence in the near future, thereby , opening doors to a more secure, efficient, and cash-independent future of payments.</p>


As the RBI prepares to deploy CBDC payments via UPI QR codes, India is poised to embrace the digital currency revolution, opening doors to a more secure, efficient, and cash-independent future of payments. 

The central bank is preparing to enable eRupee CBDC payments through existing UPI QR codes soon

The move is expected to open doors to a more secure, efficient, and cash-independent future of payments

RBI to integrate CBDC payments via UPI QR codes

RBI set to integrate eRupee CBDC payments via UPI QR codes by July end

RBI to integrate CBDC payments via UPI QR codes by July end

<p>In a groundbreaking move, Russian President, Vladimir Putin, has given the green light to the introduction of a digital version of the ruble, making Russia the largest nation in the world to implement a central bank digital currency (CBDC).</p>

<p>The bill, initially sanctioned by the Duma on 11 July 2023, was officially signed by President Putin, paving the way for the launch of the digital ruble pilot programme on 1 August.</p>

<h3>Bank of Russia takes the lead in CBDC infrastructure</h3>

<p>The Bank of Russia will play a crucial role in the operation and maintenance of the necessary infrastructure for the digital ruble. Governor Elvira Nabiullina emphasised that citizens would not be obligated to use the CBDC and that it would serve as an additional currency alongside the traditional Ruble.</p>

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<div class="heading-text">Also Read</div>

<ul class="tab-link">
	<li class="editor-readmore"><a class="editor-rel-content" href="https://www.web3cafe.in/emerging-tech/cbdc/story/china-testing-cbdc-payments-offline-integrates-e-cny-payments-into-sims-614749-2023-07-14">China launches CBDC payments in offline trials, implements e-CNY payments to SIMs</a></li>
</ul>

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<p>Joining a select group of 21 other nations, Russia is entering the CBDC race, with the digital ruble pilot program marking a significant milestone in the country's financial landscape. Once the pilot phase concludes successfully, Russia will join the ranks of 11 other nations, including Nigeria and several Caribbean countries, which have already implemented a fully functional CBDC.</p>

<h3>Global interest in CBDCs surges as job opportunities expand in the sector</h3>

<p>The move towards CBDCs reflects a worldwide trend, with a 2022 survey by the Bank of International Settlements revealing that 93 percent&nbsp;of central banks are keen to explore CBDCs. Notably, in the US, England, and Singapore, job opportunities related to CBDCs are booming. Several branches of the Federal Reserve, including those in San Francisco, Boston, and Cleveland, are currently hiring CBDC architects to develop their respective digital currencies.</p>

<p>While Russia is forging ahead with its CBDC, it has taken a different approach to cryptocurrencies. President Putin and the Russian parliament have banned the use of private cryptocurrencies for domestic payments, limiting their usage only for cross-border trade purposes.</p>

<p>However, lessons can be learned from Nigeria, the next biggest nation to launch a CBDC, which faced significant challenges during its implementation process. As Russia prepares to enter the digital ruble era, all eyes will be on the success and impact of the CBDC on the country's economy and financial landscape.</p>

<p>In conclusion, with President Putin's approval, Russia is set to embark on a new era of financial innovation by launching the digital ruble. As CBDC interest continues to surge globally, the world will be closely observing the pilot program's progress and its potential implications for the broader adoption of digital currencies in the future.</p>


The Russian President, Vladimir Putin, has given his consent to pass the Digital Ruble bill into law, thus, paving the way for CBDC implementation within the country.

President Putin has finally signed the Digital Ruble bill

The pilot programme will be launched on 1 August

Putin approves CBDC implementation

Vladimir Putin approves CBDC implementation, Russia to launch Digital Ruble in August

Vladimir Putin approves CBDC implementation

<p>As the country faces international isolation over its tussle with Ukraine, Russia's central bank is planning to test its ‘Digital Ruble,’ in just a couple of days. The country will now join the bandwagon of nations who are doing pilot runs of electronic money.</p>

<p>The Federation Council, Russia’s upper house of Parliament, has recently passed a bill granting legal authority to the country's CBDC (central bank digital currency) after it worked its way through the State Duma. However, the bill in question still requires President Putin's consent before coming into effect. If it is signed, tests of the CBDC will commence on 1 August.</p>

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<div class="heading-text">Also Read</div>

<ul class="tab-link">
	<li class="editor-readmore"><a class="editor-rel-content" href="https://www.web3cafe.in/emerging-tech/cbdc/story/rbi-targeting-1-million-cbdc-transactions-per-day-by-2023-end-plans-to-introduce-upi-qr-codes-for-e-rupee-613880-2023-07-13">RBI targeting 1Mn CBDC transactions per day by 2023-end, set to introduce UPI QR Codes for e-Rupee</a></li>
</ul>

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<h3>More insights into Russia’s CBDC test programme</h3>

<p>Further, if the legislation is enacted, the central bank will be granted the authority to act as the platform operator for the Digital Ruble. Also, the bill would enable Russians to make payments and transfers from their digital wallets that would be either within the central bank's platform or within an overview of one of the partner banks that it will be working with.</p>

<p>The Bank of Russia is planning to start a pilot programme with 15 Russian banks that will offer digital wallets to individuals and businesses. While individuals can freely make transactions with the Digital Ruble, corporate clients will be levied a 0.3% fee on transactions.</p>

<p>Other large economies like India, China, and Japan have launched CBDC pilots and are making significant progress in the same. Interestingly, the US has not shown keen interest in CBDCs and has not even moved past the research stage.</p>


Russia could start testing its Digital Ruble CBDC next month. So far, 15 Russian banks may participate in launching the test programme, suggest reports.

Russia's central bank is planning to test its ‘Digital Ruble'

While individuals can freely make transactions with the Digital Ruble, corporate clients will be levied a 0.3% fee on transactions

Russia's Digital Ruble

Russia might commence testing CBDC in August, amid sanctions imposed by the international fraternity

Russia might commence testing CBDC in August

<p>The Central Bank Digital Currency has become a primary driver for major economies globally to push for the adoption of a digital form of fiat currencies. While CBDC is not crypto, it still offers similar features to its unregulated counterpart. In this section, we&nbsp;talk about some top news and updates on CBDC.</p>
