Snippings

Are their places where conditional anonymity should be allowed? What about this example from the world of real estate, which is noted for trustworthy intermediaries, unlike crypto.

An electronics tycoon is suing the realtor who persuaded him to knock $6million off the asking price for his home without telling him that the buyer was the world’s second richest man.

Amazon boss Jeff Bezos was in the middle of a house-buying spree last year when he was attracted by the 19,000 square foot mansion for sale at $85million on Miami’s Indian Creek island.

From: Man who sold his Miami mansion for $79M files lawsuit after he discovers identity of mystery buyer | Daily Mail Online.

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El Salvador’s President Nayib Bukele sat down for an interview with TIME in his office at the Casa Presidencial in San Salvador on June 25.

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Bitcoin hasn’t had the widespread adoption we hoped for.

From: Read the Transcript of President Bukele’s Interview With TIME | TIME.

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Company growth has also been constrained by the user experience banks offer.

From: (4) Free Money – by Marc Rubinstein – Net Interest.

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Non-human identity represents identity at a scale and speed we’ve never seen before. The traditional tools and standards we use for human identity simply don’t work in this new environment.

From: Revisiting Non-Human Identity – IDPro.

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Last week Russian news outlet Kommersant reported on the planned creation of two cryptocurrency exchanges for foreign payments to circumvent sanctions, citing sources. The aim is to create stablecoins for the Chinese yuan and a BRICS currency basket.

From: Russia plans stablecoins, 2 crypto exchanges to circumvent sanctions – Ledger Insights – blockchain for enterprise.

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A2A payments could offset 15-25% of future card transaction volume growth, says the report, costing the industry billion in interchange fees and interest charges. The EPI’s Wero wallet is likely to accelerate adoption of A2A payments with a 37% reduction in card transactions predicted across Europe by 2027, according to Capgemini.

From: European card transactions to fall as A2A payments take off – report.

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Last week, Siemens issued a €300 million digital bond on the SWIAT blockchain, a private version of Ethereum launched in 2021 by Germany’s DekaBank. The sale to five German commercial banks was settled in traditional central bank money, but unlike other similar issuances (digital bonds settled via traditional rails), settlement took place within minutes.

This is possible via a “trigger solution” developed by Germany’s Bundesbank, which involves three main steps:

The digital asset changes hands on a distributed ledger.
A signal with instructions is sent via a “trigger layer”.
This connects to the EU’s TARGET 2 real time gross settlement system, which executes central bank money payment.
The trigger solution has the advantage of not requiring a wholesale central bank digital currency (wCBDC), which would make DLT markets implementation simpler and give authorities more time to see if wCBDCs are worth the upheaval.

From: Wednesday, Sept 11, 2024 – by Noelle Acheson.

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Testing testing 123.

This is an idea that’s been around from the very earliest days of the block chain. I remember giving a presentation about this to a group of cityfolk in connection with some work for one of the large infrastructure players in Europe. I also reviewed a project, that was built using similar techniques for some public payment applications in Belgium. The idea is quite straightforward: since you cannot connect bank accounts to smart contracts what you doing instead? Is have an Oracle that monitors account balances and pushes them on chain where smart contracts can access them to see if funds are available and you have a trigger that looks for unchain instructions from Smart contract. So my Smart contract outputs the instruction to transfer $10,000 from me to you, the trigger sees this ruction and uses open banking and instant payments to affect the transfer. The Oracle then reads the new balances and put these on chain.

 

In the fullness of time there will be no need to add this additional layer, of course, because unchain digital currency (for example, enter institutional wholesale central bank digital currency) will be used by Smart contracts to complete the transactions on chain.

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Experiments have borne out the difficulty and disappointment of interactions between traditional and tokenized systems. For example, in Switzerland, Project Helvetia initially linked the existing payment system to a tokenized securities system. However, without tokenized cash, the experiment found that operational burdens were added, not reduced. So when the new securities system went live, it did so with tokenized cash it issued itself, backed by funds at the central bank. The Swiss National Bank is also running a pilot that makes tokenized central bank money available for settlement.

From: Tokenization: Another Giant Leap for Securities?.

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Experiments have borne out the difficulty and disappointment of interactions between traditional and tokenized systems. For example, in Switzerland, Project Helvetia initially linked the existing payment system to a tokenized securities system. However, without tokenized cash, the experiment found that operational burdens were added, not reduced. So when the new securities system went live, it did so with tokenized cash it issued itself, backed by funds at the central bank. The Swiss National Bank is also running a pilot that makes tokenized central bank money available for settlement.

From: Tokenization: Another Giant Leap for Securities?.

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The Fedral Reserve Bank of New York says thart central banks can look forward by using research and experimentation to better understand tokenization’s potential capabilities and limitations. In fact they say that “multiple successful experiments” show efficiencies in a completely tokenized world—where money and securities are all tokenized and settlement can be automated and synchronized with smart contracts.

 

This is what tokenisation is all about it. It’s not about ideology, it’s about efficiency: decentralised finance and “web3” (for want of a better word) are simply cheaper.

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The case of CLS is instructive not only in terms of how central banks coordinate technological change, but also with regard to potential requirements for future tokenized systems. It offers two lessons. First, CLS settles with PvP (for securities, the equivalent is “delivery versus payment,” or DvP). Many tokenized systems refer to “atomic settlement,” which performs the same function. Second, CLS has access to central bank money, which reduces credit and liquidity risks. A tokenized system without both of these features may not be as robust as existing systems

From: Tokenization: Another Giant Leap for Securities?.

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