The National Bank of Rwanda has issued a public service announcement (PSA) on alleged cryptocurrency scams. The central bank focuses it attention towards initial coin offerings (ICO) scams and crypto-based Ponzi schemes related scams, which purport to offer a quick and significant return on investment for early adopters. This move is to safeguard investors and public, a survey reveals that over 80% of ICOs in Rwanda during the previous year were scams.
The President of the central bank of Germany (Bundesbank) has shared his view on blockchain and it appears he isn’t that impressed by the innovative technology. Weidman said, “For one, we’re not convinced blockchain can ever be successfully delinked from a coupon or token pay-off component without compromising the security of the system…blockchain is always going to be more expensive than a central clearer,”
The Central Bank of Bahamas (CBOB) will sign an official agreement with transaction provider NZIA.io in order to build and implement Project Sand Dollar, the first digital currency in the Bahamas. CBOB will enter an official agreement for the development of a digital fiat currency system on May 30. The central bank said, “The Project Sand Dollar initiative will be an integrated, affordable electronic payment system for all businesses and residents,”
The central bank of Malawi announced that crypto is not legal in the country and that the institution is against crypto-related activities. The Reserve Bank of Malawi (RBM) in its statement: “Cryptocurrencies are not legal tender in Malawi and do not represent a substitute to the Malawi kwacha (MWK), the local fiat currency of the southeast African country and also said that crypto is not legal and the state does not plan to recognize crypto investments in the country.”
Officials from European Central Bank have been holding discussion on potential benefits of central bank digital currencies (CBDC). The Chairman of the Bank of Lithuania, Vitas Vasiliauskas said, “The amount of cash in circulation is declining in some countries. This could mean that one day, even if it seems like a distant prospect every single person will have to have an account with a private entity just to make payments. Unfortunately, this may lead to increased levels of financial exclusion.”
The central bank of Russia may bring out its gold-pegged cryptocurrency, The head of the national bank responded to a query and stated the bank would reflect house’s suggestion of crypto tangled with gold for the reciprocated settlement but it will not act as an alternate for Russian Ruble. Though at initial stage Russia viewed cryptocurrency as vile, later in the course of time it started to normalize this sector, replicating other states like Japan, Malta, etc.
Francois Villeroy, governor of the Bank of France declared that they are interested in Stablecoin. The Bank of France reminds those investing in bitcoin that they do so entirely at their own risk. Unlike bitcoin, stablecoins are designed such that their value is always tied directly to some asset, such as gold, or are stabilized by an algorithm.
The Durch central bank has been working in developing four DLT (distributed ledger technology) prototypes since the past 3 years. The Director of payments and market infrastructures at the De Nederlandsche Bank, Petra Hielkema explained, “We started with baby steps, understanding the Bitcoin software and mining in a centralised versus decentralized way.Then we built prototypes and tested whether DLT networks could benefit parts of our market infrastructure while still providing the functionality needed in payments”
The Central Bank Of Philippines has authorised three more crypto exchanges to start its operations in the island nation’s borders, this move makes total number of crypto exchanges functioning in the country to 10. The circular released by the central bank of Philippines reads: The Bangko Sentral does not intend to endorse any VC, such as Bitcoin, as a currency. Rather, the BSP aims to regulate VCs when used for delivery of financial services, particularly, for payments and remittances…”