The Bank of Mexico (Banxico central bank of the nation) released a circular detailing crypto-related provisions for the regulation of financial technology institutions (FTIs). Sebastian Acosta Checa, CEO of local crypto exchange Isbit shared his shock “In a way, it’s preventing institutions from offering virtual assets to end consumers. This is a disaster. The people have really shown their ignorance about the subject…”
The Russian central bank (RCB) is all set to bring new regulations on cryptocurrency which targets unqualified investors to be limited in how much cryptocurrency they can purchase. The Internet of Money and the Internet of Information offer users the freedom to go anywhere without leaving their home. Hence RCB wants to limit the trading of foreign currencies to qualified investors.
The Eastern Caribbean Central Bank (ECCB) is all set for a pilot experiment on blockchain-based central bank digital currency (CBDC). The governor of the ECCB, Timothy N. J. Antoine, explained: “…will the digital EC Dollar be the world’s first digital legal tender currency to be issued by a central bank on blockchain but this pilot is also a live CBDC deployment.”
Banco de México (Central bank of Mexico) has built CoDi payment system for online payments, since more than half of Mexico’s population doesn’t have a bank account. So they plan to tap phone-based banking which is user-friendly, affordable apps from private companies. But, Amazon declined to comment on the alleged deal.
The Central Bank of Lithuania, Bank of Lithuania has updated the position of cryptocurrencies and initial coin offering (ICO) in the country. The bank has explained, “Given the emergence of new market models, market participants are also prohibited from issuing virtual asset loans or accepting it as collateral (except for cases where virtual asset tokens are considered to be securities).”
A warning has been issued by Spain’s central bank regarding the public involvement of unregulated cryptocurrencies transaction in the country. The notice has been posted in the official blog of the central bank which has made it clear the institution’s stance on cryptocurrencies. No legislation regarding cryptocurrency has been passed by the country’s government at the moment.
The Brazilian president has recently appointed a well-known cryptocurrency advocate, Roberto Campos Neto as the new head of the central bank. He explained in a letter studies and research, “One of the contributions I hope to bring to the Central Bank is to prepare the institution for the future market, where technologies advance exponentially, generating more rapid transformations.”
The central bank of South Korea, the Bank of Korea (BOK) have confirmed that they don’t have any plan of issuing cryptocurrency. A unnamed spokesperson of BOK said, “We have no plans to issue any type of CBDC that is available for all people in the near future & working on benefits and costs of CBDC implementation first.”
It has been confirmed that the South African Reserve Bank has plans to manage the crypto industry in the country, it was revealed in a consultation paper published by it. It is also expected to end the anonymous cryptocurrency transactions made by the investors as an effort in combating money laundering activities, fraudulent schemes involving the emerging industry.
The increasing demand of the cryptocurrency among the public has forced the central banks to explore the emerging industry. A new report published by the Bank of International Settlements (BIS) has revealed that 70% of the central bank is currently exploring cryptocurrency. Also 85% of the central banks globally are likely to develop their own central bank digital currencies within 1-3 years.