CBDC - Optimisus

The Saudi Central Bank (SAMA) is conducting research into CBDC

4 days ago 1 min read

Saudi Arabia’s central bank studying CBDC

The Saudi Central Bank (SAMA) is conducting research into Central Bank Digital Currencies (CBDCs) but has not yet announced any plans to deploy such a currency. In a recent statement, the bank stated that it is currently in the midst of a project that focuses on domestic wholesale CBDC use cases in collaboration with local banks and fintechs. However, the bank confirmed that no final decision has been made to launch a CBDC in the country. SAMA is researching various aspects of a state-issued digital currency, including its economic impact, market readiness, and the potential applications of a CBDC-based payment

5 days ago 2 mins read

Privacy Concerns Arise as Digital Euro is Set to be Free to Use

The European Central Bank (ECB) has announced that the Digital Euro will be free to use and accessible to all, but personal information privacy will be determined by legislators. In a statement on January 23rd, Fabio Panetta, a member of the ECB’s Executive Board, said: “It will then be up to you, the co-legislators, to establish the optimal balance between the protection of privacy and the achievement of other important objectives of a public nature.” The executive mentioned the importance of achieving public objectives, such as the fight against money laundering, the financing of terrorism, and tax evasion or compliance

6 days ago 2 mins read

CBDCs: The Future of Global Financial Systems?

Central Bank Digital Currencies (CBDCs) are being explored by 114 central banks, representing 58% of countries and 95% of global GDP, according to a research report from Bank of America. The report highlights the potential benefits of CBDCs, such as real-time settlement, complete transparency, and lower costs. CBDCs could also improve the current financial system’s outdated infrastructure and inefficiencies, such as the estimated $4 trillion of capital that banks are required to deposit in corresponding banks in order to remove settlement risk. This is an inefficient capital allocation that could otherwise be generating yield elsewhere. Furthermore, less capitalized banks and

Chinese central bank digital currency (CBDC) in the securities market.

2 weeks ago 1 min read

China’s Digital Currency Makes its Debut in Securities Trading

Soochow Securities is the first financial institution to use the central bank digital currency (CBDC) in the securities market. Through the firm’s mobile app, investors can now purchase wealth management products with the digital yuan. This marks an important milestone in the adoption of the e-CNY and its use in the financial sector. The People’s Bank of China (PBOC) has been piloting the e-CNY in several cities since 2020. Last year, the amount of e-CNY in circulation across these cities reached 13.61 billion yuan (US$2 billion). This amount accounted for 0.13% of the M0 supply — the total currency in

2 weeks ago 1 min read

Tanzania Slows Down on CBDC Adoption After Initial Research

The Bank of Tanzania has been researching the introduction of a Central Bank Digital Currency (CBDC) since 2021, and has since formed a multidisciplinary technical team to explore the risks and benefits of CBDCs. The team has studied different types of CBDCs, models for issuance and management, and whether the currency should be token-based or account-based. However, the Bank of Tanzania has identified several challenges that could impact the implementation of a CBDC. These challenges include high implementation costs, dominance of cash, inefficient payment systems, and the risk of disrupting the existing financial ecosystem. Additionally, some countries have publicly canceled