A library of snippets
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China’s yuan could become world’s ‘currency of choice’ by 2050 under dual circulation plan
Market entities will use yuan for cross-border purposes as China’s economy integrates with rest of the world, says ex-deputy central bank governor Hu Xiaolian
China’s dual circulation plan places a greater focus on the domestic market, and is its approach to adapting to an increasingly unstable and hostile outside world
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70% of the 18-24 age cohort missed or have been late on their loan repayment in the past 12 months.
From Younger Adults Are More Likely to Have Made Late BNPL Payments: | PaymentsJournal:
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A new report by FIS, a leading provider of technology solutions for merchants, banks, and capital markets firms globally, says there has been a decline in the use of cash in Canada, which halved in 2020 and is expected to drop to just four percent of in-store payments by 2024.
From In-Store Cash Payments Expected to Almost Disappear by 2024 in Canada: Report:
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If the demand for CBDC is lower than 25 per cent of bank deposits, we would only see a transfer of bank reserves and banknotes into CBDC. Commercial banks might even welcome such a transfer, as deposits are costly to manage, and reserves pay very little interest.
From CBDCs must be coupled with greater accountability | Financial Times:
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Enthusiasm for new technologies should not hijack the debate about CBDCs; there are serious implications for financial stability and social welfare from taking such a step. In such circumstances it is vital that we ask deeply whether launching officially-endorsed digital money is truly consistent with central bank independence and the public interest at large.
From CBDCs must be coupled with greater accountability | Financial Times:
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The key distinction between cash and CBDC is the size of your pockets. The demand for cash is hardly a concern; it is impractical and dangerous to hoard large amounts of banknotes. However, physical limits do not apply to digital dollars. If a significant fraction of deposits were converted into CBDC, and banks did not have enough reserves, any additional digital dollars created would imply an increase in the size of the central bank’s balance sheet.
From CBDCs must be coupled with greater accountability | Financial Times:
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In what appears to be one of the largest supply chain attacks to date, hackers compromised Kaseya, an IT management software supplier, in order to spread ransomware to the managed service providers that use its technology, as well as to their clients in turn.
From Russian hackers target IT supply chain in ransomware attack | Financial Times:
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A recent McKinsey report on the topic claimed that countries that implement open finance could see GDP gains of between 1 and 5 percent by 2030, with benefits flowing to consumers and financial institutions.
Dan Morgan is the European policy lead at Plaid.
The EU’s proposal for “a trusted and secure digital identity for all Europeans”, could provide a much-needed solution for these challenges. Although the causes of financial exclusion are many and varied, digital identity has the potential to remove some of the major barriers not only to access, but also to the usage of financial accounts.
From The EU’s digital wallet — the direction of travel for financial services? – Financial News:
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With money, you know exactly what you’re paying and to whom, and you can cancel payments when you want. Transactions become transparent, and incentives become properly aligned. While platforms that depend on ad sales must harvest attention any way they can, platforms that depend on people’s willingness to pay must foster trust and satisfaction.
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