Callum Kennard’s Post

❓At T-Blocks we are always asked: “Why do you use #DLT to provide investment access to emerging markets” 💡And we always reply with: “Not only it is more efficient and transparent, but it is our conviction that the financial system will move towards DLT” 🏦Yesterday, Swift the largest banking settlement layer doubled down on their efforts to integrate blockchain in their messaging network of over 11k financial institutions. ⛓️The future of finance is being built on DLT https://lnkd.in/eEWBhRN7

1. Dystopic Use of Blockchain: The transcript discusses a paper by Consensus focusing on the potentially dystopic use of blockchain technology, particularly in the context of Central Bank Digital Currencies (CBDCs). The author believes that CBDCs, promoted by major banking institutions, pose significant risks to individuals in terms of privacy, security, and financial freedom. 2. Requirements for CBDC Implementation: Central banks face challenges in introducing CBDCs. They must decide on the design, access (retail or wholesale), and whether the CBDC should be interest-bearing. Retail CBDCs target individual users for easy and risk-free digital transactions, while wholesale CBDCs facilitate interbank payments and financial innovation. 3. Distribution and Intermediaries: Central banks must choose how CBDCs will be distributed. Options range from reliance on banks and select institutions to direct distribution via blockchain-based platforms. Interestingly, the paper suggests increasing intermediaries, contrary to the original decentralized vision of blockchain technology. 4. Governance and Centralization: The paper emphasizes the need for governance and regulation in CBDC systems. While decentralized systems offer advantages, lack of structured governance could hamper evolution and raise legal questions. The proposed governance structure leans towards centralization, which contradicts the principles of decentralization in blockchain technology. 5. Privacy, Transparency, and Transaction Models: The paper discusses the balance between privacy and transparency in CBDC transactions. It suggests high privacy for small transactions and high traceability for larger ones. Additionally, it debates whether the CBDC system should be token-based (like Ethereum) or account-based (centralized). The author favors a tokenized model for its potential for innovation and reduced central bank responsibilities. #DystopicBlockchain #CBDCRisks #CentralBankDecisions #BlockchainIntermediaries #GovernanceVsDecentralization #PrivacyTransparencyBalance #TokenizedCBDC

New Zealand’s CBDC Consultation: Digital Cash Launches New Zealand begins consultations on CBDC “Digital Cash,” which will change the country’s monetary system.  “Digital Cash” aims to provide safe digital currency while boosting flexibility and financial inclusion.  Director Ian Woolford outlines the benefits of CBDC, stressing user accessibility and privacy.  With its daring move to introduce a Central Bank Digital Currency (CBDC), New Zealand is once more creating waves in the cryptocurrency world. The Reserve Bank of New Zealand has announced that consultations on its groundbreaking CBDC plan, dubbed “Digital Cash,” will begin. This move has the potential to transform the nation’s monetary system completely. CBDC KPMG New Zealand #digitalcash #cryptonews #blockchain #CBDC https://lnkd.in/ewSbP9_3

Swift to develop a #CBDC tokenised asset exchange - Swift is progressing toward enabling its members to transact with regulated digital assets and currencies through its global network. After successful experiments in #blockchain interoperability and CBDCs, Swift aims to address the fragmentation of digital platforms, or "digital islands," that complicate institutional investors' stablecoins tokenized assets. With forecasts predicting a $30 trillion #tokenized asset market by 2034, Swift is focused on ensuring global interoperability. It plans to support multi-ledger transactions like Delivery-versus-Payment (DvP) and Payment-versus-Payment (PvP), initially using fiat currencies and eventually incorporating CBDCs and regulated stablecoins. https://lnkd.in/e3Nengau. John Orchard Anna Irrera Efi Pylarinou Lavinia D. Osbourne Alfredo Mu��oz García James Tylee Albertha Charles David Taylor Antony Abell

#HongKong has officially launched Phase 2 of its central bank digital currency (CBDC) pilot, the e-HKD, taking a significant step forward in the global movement towards digitized national currencies. This initiative, spearheaded by the Hong Kong Monetary Authority (HKMA), moves beyond the initial explorations of CBDCs in domestic retail and offline payments to delve deeper into the realms of programmability, tokenization, and atomic settlement. What sets this phase apart is its support by a recently introduced regulatory sandbox designed specifically for testing CBDCs in wholesale applications and the tokenization of assets. This development is not just a technical upgrade but a strategic move towards enhancing Hong Kong’s position as a global financial hub. By exploring new use cases not covered in the previous phase, the HKMA is opening doors to innovative applications of digital currencies that could redefine financial transactions, asset management, and the broader economic landscape. The significance of this move cannot be understated. As digital assets and tokenization become increasingly critical in the financial sector, Hong Kong’s initiative places it at the forefront of a global shift towards more secure, efficient, and transparent financial systems. This progress in the CBDC domain highlights the potential of digital currencies to offer alternatives to traditional banking and financial services, potentially increasing competition with private crypto offerings like stablecoins. For businesses, investors, and technologists keen on the intersection of finance and technology, Hong Kong’s e-HKD pilot represents a beacon of innovation and a case study in the practical application of blockchain and digital currencies in a major economy. The pioneering efforts of asset tokenization solution providers like Zoniqx (Formerly Tassets) highlight the importance of collaboration in advancing the e-HKD pilot and setting new benchmarks in the digital currency landscape. https://lnkd.in/dAv8Asaa

JPMorgan Report Indicates US Crypto Regulations Seemingly Oppose Various Aspects of Digital Currency According to Foresight News, a research report from JPMorgan suggests that US cryptocurrency regulations appear to be against several aspects of digital currency. The report indicates that the regulators seem to oppose the issuance of central bank digital currencies (CBDCs) by the Federal Reserve, the participation of US banks in cryptocurrency, non-compliant stablecoins like Tether, and the classification of all tokens other than Bitcoin (BTC) and Ethereum (ETH) as securities. The report from JPMorgan, a leading global financial services firm, provides an insight into the current stance of US regulators towards various aspects of the rapidly evolving digital currency landscape. The firm's findings suggest that the regulatory environment in the US could potentially hinder the growth and development of the digital currency sector. The report's findings indicate that the US regulators are seemingly against the Federal Reserve issuing its own CBDC. This comes at a time when several other countries are actively exploring and developing their own digital currencies. The report also suggests that the regulators are against US banks participating in cryptocurrency, which could potentially limit the integration of digital currencies into the mainstream financial system. Furthermore, the report indicates that the regulators are against non-compliant stablecoins like Tether. Stablecoins are digital currencies that are designed to minimize the volatility of the price of the stablecoin, relative to some 'stable' asset or a basket of assets. The report also suggests that the regulators are against the classification of all tokens, other than Bitcoin and Ethereum, as securities. This could potentially impact a wide range of tokens and digital assets, limiting their use and development. The findings of the JPMorgan report highlight the potential challenges that the digital currency sector could face in the US due to the current regulatory stance. It underscores the need for a more supportive and conducive regulatory environment for the growth and development of digital currencies. #JPMorgan #SEC #ETF #DeFi #Metaverse #crypto #compliance #news #virtualcurrency #law #USA #India #Tokenization Disclaimer: Includes thrid-party opinions. No financial advice. May include sponsored content.

🏛 How Central Bank Digital Currencies (CBDCs) Could Affect Crypto Payments Central Bank Digital Currencies represent a groundbreaking move by central banks to digitize national currencies. Unlike decentralized cryptocurrencies, CBDCs are fully regulated and backed by the respective governments, promising a blend of traditional financial security with digital efficiency. This development is particularly intriguing for the world of crypto payments. The advent of CBDCs raises important questions for the future of crypto payments. On one hand, they could serve as a gateway, introducing a broader audience to digital currencies. Payment processors and gateways that have traditionally dealt with cryptocurrencies like Bitcoin, Ethereum, or Litecoin might find it easier to incorporate CBDCs into their existing infrastructure, thereby expanding their offerings. 💸 How CBDCs Could Shape Crypto Payment Processing The integration of CBDCs into crypto payment systems could manifest in several ways. For one, businesses that are hesitant to accept cryptocurrencies due to their volatility might be more open to CBDCs, given their stable value and government backing. This could lead to a surge in companies accepting digital currencies, from fiat to crypto and vice versa. Furthermore, the infrastructure developed for CBDC transactions could pave the way for more efficient and secure crypto payment methods. Existing crypto payment solutions, from Bitcoin to altcoins like Litecoin and Dash, could leverage this infrastructure to enhance their transaction processes, potentially increasing adoption. As we move forward, the interplay between CBDCs and crypto payments will likely present both opportunities and challenges. For crypto payment processors and businesses looking to accept digital currencies, staying abreast of developments in CBDCs will be crucial. Adapting to the evolving digital currency landscape will not only involve technical upgrades but also navigating the regulatory frameworks that accompany CBDCs. Central Bank Digital Currencies are poised to be a significant catalyst in the world of crypto payments. Whether they will harmonize with or disrupt the current cryptocurrency payment ecosystem remains to be seen. One thing is certain, however: the intersection of CBDCs and crypto payments is an area ripe with potential, demanding attention from all corners of the digital finance world. #ALFAcoins #CBDCImpact #CryptoPayments #CBDCtransactions

I believe that both #CBDCs and #stablecoins have the potential to coexist as #payment options in the future. In fact, there are some industries where the utility for each will prove suitable, such as in cross-border #remittance. However, in niche markets like #Web3 #Gaming and #Defi, I see stablecoins becoming the dominant force due to their alignment with the core ethos of the global #blockchain community - #decentralization. The future of digital assets is bright, and I'm excited to see how they continue to evolve as alternative payment methods and shape the #payments industry.

🌐 Streamlining the Global Movement of Digital Assets and Currencies 🌐 ✔️ Swift paving the way for transactions with regulated digital assets on the Swift network. ✔️ Digital assets market projected to reach $30 trillion by 2034. ✔️ 91% of institutional investors interested in tokenised assets (Celent and BNY survey). ✔️ Preventing Fragmentation by addressing challenges of divergent platforms and regulatory environments. https://lnkd.in/gRa9vJQC 🔎 Explore how Axiology is contributing to this innovative space under the #EU Distributed Ledger Technology (#DLT) Regime. #Innovation #DigitalAssets #Blockchain #FinancialTechnology #Swift #Axiology #DLTRegime #Tokenisation

Swift begin live trials of digital asset and currency transactions in 2025 - It will mark the first time Swift will move beyond experimenting with blockchain transactions in testing environments to real-world settlement. Swift said banks in N America, Europe and Asia will begin live trials of digital asset and currency transactions over its global messaging network, which services more than 11,500 financial institutions. #swift #digitalassets #currency #transactions #trial https://lnkd.in/gsNRwRDp