article thumbnail

CBDCs in practice: What we’ve learned from the early movers

The Payments Association

These projects leveraged distributed ledger technology (DLT) to settle trades more quickly and securely, using delivery-versus-payment (DvP) mechanisms that reduce counterparty risk. Yet, merchants, especially small businesses, face real hurdles. On the consumer side, privacy concerns loom large.

article thumbnail

Key considerations for the adoption of digital currencies

Finextra

A new way of settling transactions Firstly, when we talk about digital currency we are referring to the registration of a fiat currency (such as the pound) on a Distributed Ledger Technology (DLT)-based network with a 1:1 relationship to the fiat currency. Digital currencies can be issued by central banks (aka.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

HSBC Pilots Quantum-Safe Technology for Tokenised Gold

Fintech Finance

Last year, HSBC was the first global bank to offer tokenised physical gold to institutional investors using distributed ledger technology (DLT). This achievement marks the latest step by HSBC in pioneering the protection of critical applications from potential future quantum computing attacks.

article thumbnail

Is ‘Embedded Regulation’ The Key To Stablecoins’ Success?

PYMNTS

The age of digital currencies might be fully upon us, but key questions swirl about how to issue and regulate cryptos – especially stablecoins. Regulators and lawmakers, however, can latch onto digital currency efforts as they must monitor and also supervise such stablecoins. In a paper that debuted Tuesday (Nov.

article thumbnail

Banco Santander, Lloyds Banking Group, and UBS Successfully Settle Pilot Uncleared Margin Transfers in the Sterling Fnality Payment System

Fintech Finance

This real-world proof-of-concept proves that Fnality can be used to make bilateral margin payments using the £FnPS, and marks the first instance of a fully regulated Distributed Ledger Technology (DLT)-based payment system being used to settle margin for the purposes of real-world inter-bank derivative exposures.

article thumbnail

Blockchain Tracker: Prizes And Regulations, Do They Mix?

PYMNTS

The crux of many concerns relate to regulations that are still to be determined, and it may take awhile before they are truly established. Regulators sure are looking at blockchain carefully, more so now. Experts say they expect to see many more similar regulations across the globe.

article thumbnail

France’s Central Bank Latest To Ponder A Digital Currency

PYMNTS

Beau wants to use distributed ledger technology (DLT), and France is considering a central bank digital currency (CBDC). It started a FinTech-targeted Innovation Hub this month, saying that the hub should “foster international collaboration among central banks on innovative financial technology.” .