CBDCs: Financial Exclusion

Karlysymon

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The World Economic Forum (WEF) has created what it claims is the first ever global consortium dedicated to designing a framework for the transnational governance of digital currencies, including stablecoins.

A press release shared with Cointelegraph on Jan. 24 reveals that the newly-formed Global Consortium for Digital Currency Governance will focus on the development of interoperable, transparent and inclusive policy approaches to regulating the digital currency space and fostering public-private collaboration in both developed and emerging economies.

Tackling fragmentation
The WEF says the impetus for the consortium’s creation is a recognition that well-designed global governance remains the key to realizing the much-lauded promise of digital currencies to foster financial inclusion by extending access to financial services to un- and underbanked populations globally.

The consortium will convene international enterprises, traditional financial institutions, government representatives, technical experts, academics, international organizations, NGOs and members of the WEF’s communities.

Alluding to the presently fragmented state of global digital currency regulation, the WEF says that it will focus on building trust and encourage innovative thinking on regulatory policies that can support public and private actors in the global digital currency space.

A host of high-profile figures have endorsed the initiative, including the Governor of the Bank of England, Mark Carney, WEF founder and executive chairman Klaus Schwab, the Senior Minister and Chairman of the Monetary Authority of Singapore, Tharman Shanmugaratnam, and finance ministry officials and central bankers from Egypt and Bahrain.

Neha Narula, director of the Digital Currency Initiative at the Massachusetts Institute of Technology has said that “Creating an inclusive, integrated global digital currency system requires dialogue across stakeholders ranging from finance ministers to open source developers.”
 

Karlysymon

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The bottom line is that central bank digital currencies are not just a matter of technology, but also a matter of political power and social justice. They have the potential to unleash unintended, unwanted and unexpected societal consequences — only time will tell what these consequences are.

Although central banks are responsible for platforming social issues to the public stage, democratic institutions must take the lead for this issue. Countries should implement digital currencies only if they can ensure that their governments and authorities will not cross red lines. These rules and regulations must be drawn immediately by democratic institutions, rather than exclusively by central banks.

Ultimately, what lies ahead of us is not just a technological advancement in payment, but a fundamental change in the world’s financial infrastructure. This change is expected to cause shifts in the social and political fabric of societies, and we must prepare for it in a democratic way.
 

Karlysymon

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The European Central Bank (ECB) says the introduction of digital cash in the form of central bank digital currencies (CBDCs) appears to be the "only solution" that will guarantee a "smooth continuation" of the current monetary system.

The comments were made as part of an ECB Working Paper Series, which was published in August, discussing monetary policy and financial stability as it relates to CBDCs — gathering insights from 150 academic papers on the subject.

Nonetheless, the paper concludes that the introduction of CBDCs is “the only solution to guarantee a smooth continuation of the current monetary system” as physical money loses its economic “fitness” and cryptocurrencies and BigTech (large digital platforms) continue to make inroads into the financial system, noting:

"There is no regulatory alternative that promises to eliminate the threat to the two‐layer monetary system. Since cash is only available in physical form, it is by construction not “fit” for the digital age."
 

Karlysymon

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The U.S. DOJ has established a group of federal prosecutors which it calls the “Digital Asset Coordinator (DAC) Network” consisting of over 150 prosecutors whose goal is to “combat the growing threat posed by the illicit use of digital assets to the American public.” The department announced on Friday that its Criminal Division had created the nationwide DAC Network.
 

DavidSon

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Wasn't sure which thread to post this article in! :D

How the Federal Reserve is using the 'green transition' as a pretext to build an American Social Credit System

"If it mirrors the Eurosystem process, the Federal Reserve’s pilot exercise will indeed become the first step for the framework of a Federal Reserve imposing a social credit score system attached to the U.S. Dollar. The banks are arguably incentivized to go along with the program, as those who go along with the agenda become the ultimate middlemen for all U.S. banking activity.

...The banks involved in the exercise — Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo — hold a combined majority of all U.S. banking assets, meaning a Fed decision would likely have the top-down effect of crushing small and community banks that do not have the resources to to comply with its monetary edicts.

If the Big Banks comply with this hyper activist Federal Reserve (which, more than ever, needs a manufactured crisis to take weight off of its monetary policy failures), the American Social Credit Score system will be here a lot sooner than many project."
 
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