Here is our pick of the 3 most important Stablecoin news stories during the week
This week we saw Central Banks announcing new and more initiatives for Central Bank Digital Currencies (CBDC), we also saw them potentially working together and on a different use case to the one that is often reported and commented upon.
This analysis by Bits on Blocks The Sweet Spot for Programmable Money – Bits on Blocks highlights that whilst often everyone is focussed on the consumer market a better spot to look would be the business sector both large and small or often referred to as B2B.
That is the core thrust of the Central Bank of Thailand’s announcement this week. Bank of Thailand Launches Digital Currency Pilot Project They have partnered with the largest cement and building material provider in Thailand, Siam Cement Group (SCG), and Thailand-based fintech firm Digital Ventures Company Limited (a fintech-facing venture capital wing of the Siam Commercial Bank that invested in Ripple in 2016) to pilot test their payment prototype system.
A similar theme is explored with the CBDC project from the Central Bank of China (PBoC) and the Governments Belt and Road initiative Development of digital currency can help RMB go global: expert
The Government of Singapore has also realised that a better purpose for CBDC’s may be with Businesses and cross border payments and that their role should be to foster inter government cooperation, in this case with China so that local businesses can reap the benefits. Singapore to Explore Central Bank Digital Currency With China
So rather than the more difficult political task of displacing cash, that brings with it all of the concerns about individual loss of freedom and privacy, a sweeter spot to focus with a quicker and more tangible return would be cross border payments for businesses who are busy creating jobs and satisfying consumer needs as importers and exporters.
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Alan Scott is an expert in the FX market and has been working in the domain of stablecoins for many years.
We have a self imposed constraint of 3 news stories per week because we serve busy senior Fintech leaders who just want succinct and important information.
For context on stablecoins please read this introductory interview with Alan “How stablecoins will change our world” and read articles tagged stablecoin in our archives.
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Source: https://dailyfintech.com/2020/06/23/stablecoin-news-for-the-week-ending-tuesday-23rd-june/
