Latest news with #CBDC
South China Morning Post
17 hours ago
- Business
- South China Morning Post
US dollar uncertainty propels use of e-CNY
The geopolitical world is becoming multipolar. Inevitably, the international monetary system is also evolving towards one where several sovereign currencies coexist and compete with each other. Advertisement As the second-largest economy, China must broaden the international role and appeal of the yuan. To this end, it makes sense to set up a new operations centre in Shanghai, the key mainland financial hub, to boost the yuan's global reach. As announced at the just-concluded Lujiazui Forum in the city, the international operations centre will pilot a range of monetary policy tools to complement the rolling out of the digital renminbi. The strategy underscores Beijing's determination to promote the use of the e-CNY, a central bank digital currency (CBDC), on a worldwide scale. At a time when most countries are still grappling with the concept of a CBDC, China is moving full steam ahead. Successful trials in the retail use of e-CNY have been carried out across a dozen Chinese cities since 2023, and in Hong Kong since last year. Advertisement A promising cross-border payments and banking system called 'mBridge' is linking the CBDCs from the central banks of China, Hong Kong, the UAE, Saudi Arabia and Thailand.
Arabian Post
2 days ago
- Business
- Arabian Post
Shanghai to Host Global Operations Centre for Digital Yuan
China's central bank governor, Pan Gongsheng, announced at the Lujiazui Forum on 18 June that a dedicated international operations centre for the e‑CNY will be established in Shanghai. The move signals Beijing's renewed push to extend the digital yuan's reach in global transactions and shift the balance of currency power. Pan described stablecoins and central bank digital currencies as 'reshaping cross‑border payments', emphasising that global financial infrastructure needs stronger regulatory alignment. He argued that traditional cross‑border payment systems are inefficient, vulnerable to politicisation, and susceptible to unilateral sanctions. The Shanghai centre will serve as a nexus for international e‑CNY operations, aiming to streamline digital yuan transactions abroad and enhance integration with global financial markets. This facility complements efforts to boost the Cross‑Border Interbank Payment System, which has recently onboarded major international banks, including Standard Bank and First Abu Dhabi Bank. ADVERTISEMENT Governor Pan framed this initiative as part of a broader strategy to foster a 'multi‑polar international monetary system'. By promoting competition among key currencies, China seeks to reduce reliance on the US dollar while enhancing financial system resilience. Pan also called for more coordinated global regulation of stablecoins and CBDCs. As digital monetary instruments gain traction, he said global oversight must be harmonised to manage risks effectively. Beyond infrastructure, Chinese regulators affirmed their commitment to exchange‑rate stability and further opening domestic financial markets. Zhu Hexin of the State Administration of Foreign Exchange noted improved tools to counter external pressures, while Li Yunze of the National Financial Regulatory Administration highlighted efforts to foster a transparent and predictable environment for international investors. Analysts say China's timeline aligns with expanding e‑CNY pilots and integration of public transport systems in several cities, such as Chengdu, Beijing, Suzhou, and Shanghai. The Shanghai centre appears aimed at extending these domestic innovations into globally scaled applications. Internationally, China has taken part in multilateral CBDC initiatives such as Project mBridge, alongside the BIS, Hong Kong, Thailand, UAE, and Saudi Arabia. This collaboration signals a shift toward creating interoperable digital payment bridges and presents an alternative to dollar‑centred systems. Observers suggest that China aims to balance integration with established structures such as SWIFT while developing parallel alternatives like CIPS. That strategy could help counteract geopolitical vulnerabilities inherent in dominant payment networks. Critics caution that for the digital yuan to gain traction, China must address capital‑account restrictions, strengthen market transparency, and win international trust in its legal and regulatory systems. Yet this latest initiative dovetails with China's longer‑term ambition to internationalise the renminbi. The launch of the Shanghai operations centre — with its promise to enable faster, more efficient overseas e‑CNY transactions — may mark a significant milestone in Beijing's drive toward a more diversified global monetary order.
Yahoo
2 days ago
- Business
- Yahoo
Could CBDCs Crush Altcoin Returns? Investors Beware.
Central bank digital currencies could render many altcoins superfluous. Cryptocurrencies with hard-to-replicate capabilities will survive just fine. Coins that only aspire to be payment rails could be wiped out entirely, eventually. 10 stocks we like better than XRP › Picture a four-lane highway suddenly upgraded with a government-built bullet train. Commuters who once tolerated toll roads and traffic will board the shiny new line the moment it starts running. The same dynamic may be coming for crypto. Central bank digital currencies (CBDCs) are edging closer to launch in the world's largest economies, promising 24/7, fee-free settlement backed by the state. If that rail goes live, why would ordinary people keep routing payments through privately issued cryptocurrencies that charge gas fees and carry protocol risk? That question should be front of mind for anyone holding payment-focused altcoins today. Let's investigate this issue in closer detail. Early evidence already hints at the risk of total replacement of many altcoins by CBDCs. As an example, consider that the Bahamas rolled out its Sand Dollar, the world's first nationwide retail CBDC, in late 2020. Why might that be a problem for altcoins? In short, because the Sand Dollar offers near-instant transfers with no foreign exchange spread, while merchants avoid interchange fees entirely. Programmability matters too, as regulators can flag suspicious transfers, which is a feature that is now appearing in U.K. digital-pound proofs of concept. And though the European Central Bank (ECB) insists its coming digital euro "would not be programmable money," it still plans automated rules for tax refunds and social payments if users opt in. The U.S. is inching forward in evaluating the impacts of CBDCs as well, despite an executive order earlier this year banning their implementation. A bipartisan congressional brief concluded in April that CBDCs are more likely to compete directly with cryptocurrencies used for payments than with speculative, novel, or other decentralized finance (DeFi) assets, laying the intellectual groundwork for a retail digital dollar pilot. If central banks can deliver near-free transfers with compliance baked in, the core selling proposition of many payment-rail altcoins, which is to say cheaper, faster movement of value, would evaporate. Tokens such as XRP (CRYPTO: XRP) derive a large share of their thesis from cross-border settlement efficiency. Should CBDCs interoperate across borders, a feature that's in active testing in numerous examples, that advantage shrinks further. Not every crypto project lives or dies on raw payments. Ethereum underpins thousands of decentralized finance contracts that price risk, provide leverage, and tokenize real-world assets. Solana is courting developers building on-chain games and high-throughput AI data feeds. Such ecosystems offer utility that CBDCs will not replicate soon. Before buying or holding any altcoin while CBDCs loom, investors should trace the real demand, keeping in mind that if volume spikes coincide with airdrops or liquidity mining, usage could disappear once state-owned digital cash is live. Investors should also model fee compression, as programmable CBDCs will cost users nearly zero, raising the question of whether an altcoin can drop its fees without gutting validator incentives. Assuming CBDCs gain mainstream traction by the late-2020s, tokens that fail those tests face shrinking addressable markets. The ECB aims for a political deal on the digital euro by early 2026, then a two- to three-year rollout. Others are likely to follow. That does not guarantee crashes in altcoins; meme coins thrived in 2024 despite lacking utility altogether, capturing a large amount of crypto narrative attention. Still, betting on speculative enthusiasm to outpace structural competition from sovereign money is not a viable strategy. And the threat to altcoins, particularly those without real capital backing, is undeniable. Therefore, tilt your preference to invest toward scarce on-chain capabilities that CBDCs cannot easily match. For example, while XRP's use as a medium of exchange may be threatened by CBDCs, its use as a platform for on-chain financial infrastructure catered to institutional investors is not, as its positioning is unique within the sector on that front. Other cryptocurrency sectors and capabilities like decentralized compute, verifiable storage, permissionless derivatives, or culture-driven digital collectibles will probably survive. Keep your position sizes in pure-payment tokens modest, and demand compelling value propositions before investing. Before you buy stock in XRP, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and XRP wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor's total average return is 791% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Alex Carchidi has positions in Ethereum and Solana. The Motley Fool has positions in and recommends Ethereum, Solana, and XRP. The Motley Fool has a disclosure policy. Could CBDCs Crush Altcoin Returns? Investors Beware. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Economic Times
3 days ago
- Business
- Economic Times
Digital Rupee vs Crypto: What the debate misses about the future of money
When the debate gets wrong The Digital Rupee is a sovereign, state-backed currency that retains all the regulatory control of fiat, with some of the benefits of digital settlement—speed, transparency, and auditabilit. Crypto, especially stablecoins and DeFi protocols, represents open, global finance—designed to reduce reliance on intermediaries, enable 24/7 global settlement, and allow innovation at the edges. Live Events Whether it's a CBDC or a stablecoin, the average Indian citizen wants: Instant settlement Low transaction fees Universal acceptance Interoperability across borders Clear privacy and control over their funds Google Pay PhonePe (majority owned by Walmart) Paytm (with large foreign ownership) India needs a strategic payments agenda To avoid this, India must learn from UPI's journey: Create favorable policies and early access for Indian startups to build on top of the Digital Rupee. Ensure neutral interoperability layers so no single app dominates wallet access or merchant onboarding. Offer incentives and sandboxes for fintechs and Web3 startups to create novel CBDC use cases in sectors like trade, MSME finance, insurance, and mobility. Consider public-private models where infrastructure remains open but innovation is encouraged locally. It's not Crypto vs CBDC. It's about empowering Indians A Digital Rupee that settles instantly, works offline, and integrates with UPI? Excellent. A crypto wallet that lets an Indian freelancer receive USD-stablecoins from a US client and cash out into INR at low cost? Also excellent. (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel India is in the midst of a silent revolution in money. On one hand, we have the Digital Rupee , the Reserve Bank of India 's Central Bank Digital Currency (CBDC), and on the other, the rapidly growing world of crypto-assets and stablecoins operating on public are vying to redefine how value is transferred in the digital age. And yet, the ongoing debate—often framed as CBDC vs Crypto—misses the point entirely. Because the real question is not about which technology wins, but who benefits from discourse often pits the Digital Rupee and crypto against each other—as if they are fundamentally incompatible. The truth is, both are programmable forms of digital money, designed for different purposes, but potentially coexisting in the same future financial focusing only on the instruments is missing the forest for the trees. What matters most is the end user's the user, convenience is kingIf the Digital Rupee delivers this, it wins. If crypto and stablecoins can do it better, they will continue gaining ground—especially among tech-savvy users, freelancers, SMEs, and far, Digital Rupee usage is modest—with just 19 banks live and around 100,000 daily transactions reported in mid-2024. By comparison, UPI clocks 350 million+ transactions a day, and stablecoins globally settled over $7 trillion in bigger problem: Not who builds it, but who controls itLet's zoom out. India built UPI—arguably the most successful public payments infrastructure in the world. But despite being a product of NPCI (a quasi-government entity), UPI adoption is now dominated by three major apps:Together, these three control over 94% of UPI transaction while UPI is Indian in origin, the monetization, data leverage, and platform control rests in the hands of foreign-backed companies. Indian startups in the payments space face high entry barriers, and the market has become increasingly difficult to penetrate due to high compliance, capital, and branding India repeats the same model with the Digital Rupee—where state infrastructure is handed over to foreign-led platforms for distribution—we will be building Indian rails for global profits, all, payments aren't just a technical tool—they are an instrument of economic sovereignty . And whoever controls the interface to money, controls much more than just the end of the day, the user doesn't care whether their money comes from a central bank node or a smart contract. They care about speed, cost, and key is not to fixate on the rails, but to ensure that the value stays in India, and Indian entrepreneurs are not locked out of building the future. Because if we don't, we risk creating another UPI story—built by India, but controlled by others. And that's a mistake we can't afford to make twice.(The author, Aishwary Gupta is the Global Head of Payments & Real World Assets at Polygon Labs): Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
3 days ago
- Business
- Time of India
Digital Rupee vs Crypto: What the debate misses about the future of money
India is in the midst of a silent revolution in money. On one hand, we have the Digital Rupee , the Reserve Bank of India 's Central Bank Digital Currency (CBDC), and on the other, the rapidly growing world of crypto-assets and stablecoins operating on public blockchains. Both are vying to redefine how value is transferred in the digital age. And yet, the ongoing debate—often framed as CBDC vs Crypto—misses the point entirely. Because the real question is not about which technology wins, but who benefits from it. When the debate gets wrong Public discourse often pits the Digital Rupee and crypto against each other—as if they are fundamentally incompatible. The truth is, both are programmable forms of digital money, designed for different purposes, but potentially coexisting in the same future financial system. Crypto Tracker TOP COIN SETS BTC 50 :: ETH 50 -3.77% Buy Smart Contract Tracker -5.49% Buy DeFi Tracker -10.48% Buy Web3 Tracker -10.95% Buy NFT & Metaverse Tracker -12.38% Buy TOP COINS (₹) XRP 193 ( 2.6% ) Buy BNB 56,658 ( 0.59% ) Buy Bitcoin 9,215,509 ( 0.39% ) Buy Ethereum 222,362 ( -1.14% ) Buy Solana 13,227 ( -1.93% ) Buy The Digital Rupee is a sovereign, state-backed currency that retains all the regulatory control of fiat, with some of the benefits of digital settlement—speed, transparency, and auditabilit. Crypto, especially stablecoins and DeFi protocols, represents open, global finance—designed to reduce reliance on intermediaries, enable 24/7 global settlement, and allow innovation at the edges. Did you Know? The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors. View Details » But focusing only on the instruments is missing the forest for the trees. What matters most is the end user's experience. Live Events For the user, convenience is king Whether it's a CBDC or a stablecoin, the average Indian citizen wants: Instant settlement Low transaction fees Universal acceptance Interoperability across borders Clear privacy and control over their funds If the Digital Rupee delivers this, it wins. If crypto and stablecoins can do it better, they will continue gaining ground—especially among tech-savvy users, freelancers, SMEs, and NRIs. So far, Digital Rupee usage is modest—with just 19 banks live and around 100,000 daily transactions reported in mid-2024. By comparison, UPI clocks 350 million+ transactions a day, and stablecoins globally settled over $7 trillion in 2023. The bigger problem: Not who builds it, but who controls it Let's zoom out. India built UPI—arguably the most successful public payments infrastructure in the world. But despite being a product of NPCI (a quasi-government entity), UPI adoption is now dominated by three major apps: Google Pay PhonePe (majority owned by Walmart) Paytm (with large foreign ownership) Together, these three control over 94% of UPI transaction volume. So while UPI is Indian in origin, the monetization, data leverage, and platform control rests in the hands of foreign-backed companies. Indian startups in the payments space face high entry barriers, and the market has become increasingly difficult to penetrate due to high compliance, capital, and branding costs. If India repeats the same model with the Digital Rupee—where state infrastructure is handed over to foreign-led platforms for distribution—we will be building Indian rails for global profits, again. India needs a strategic payments agenda To avoid this, India must learn from UPI's journey: Create favorable policies and early access for Indian startups to build on top of the Digital Rupee. Ensure neutral interoperability layers so no single app dominates wallet access or merchant onboarding. Offer incentives and sandboxes for fintechs and Web3 startups to create novel CBDC use cases in sectors like trade, MSME finance, insurance, and mobility. Consider public-private models where infrastructure remains open but innovation is encouraged locally. After all, payments aren't just a technical tool—they are an instrument of economic sovereignty . And whoever controls the interface to money, controls much more than just transactions. It's not Crypto vs CBDC. It's about empowering Indians At the end of the day, the user doesn't care whether their money comes from a central bank node or a smart contract. They care about speed, cost, and usability. A Digital Rupee that settles instantly, works offline, and integrates with UPI? Excellent. A crypto wallet that lets an Indian freelancer receive USD-stablecoins from a US client and cash out into INR at low cost? Also excellent. The key is not to fixate on the rails, but to ensure that the value stays in India, and Indian entrepreneurs are not locked out of building the future. Because if we don't, we risk creating another UPI story—built by India, but controlled by others. And that's a mistake we can't afford to make twice. (The author, Aishwary Gupta is the Global Head of Payments & Real World Assets at Polygon Labs) ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
