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CBDCs Shine on the War Stage
War is changing the dynamics of money. That's no secret to anyone. Moreover, as we recently discussed in Solidus Intelligence's analysis, Bitcoin and the Inflation Debate, the links between war and fiat money can be traced back to the origins of this financial system. The gold standard, for instance, limited the ability of governments to run deficits to finance war effort.
To this day, money continues to be used as part of military strategy, as the financial sanctions against Russia corroborate. By seeking to exclude the belligerent country from the global financial system, it also highlighted the counterparty risk that global finance is not neutral, but can be politically aligned. This realization has deepened the pre-existing Russian and Chinese will to build their own financial system and thus be able to dispense with the hegemony of the petro-dollar system. Central Bank Digital Currencies (CBDC) are the most recent expression of this will.
Depending on how a CBDC is designed, it can increase efficiency and transparency in settlements for international trade. However, being a change in form rather than substance of the fiat system itself, counterparty risks are still present, and choosing which currency to use for payments, whether that of one country or another, inevitably leads to friction and debate. Being able to rely on a neutral infrastructure, which is not subject to political will, is Bitcoin's greatest strength in this context.
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Russia plans to use digital ruble for transactions with China
Russia's Central Bank Digital Currency, expected to be launched in early 2023, could be used for settlements in international trade with China, a Russian lawmaker revealed.
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U.S. won't move forward with a CBDC anytime soon
U.S. Federal Reserve Chairman Jerome Powell clarified that a digital dollar is not currently a priority, stating that they would not move forward with such a decision in the near future
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Digital Euro should have no borders, says European Central Bank President
The president of the European Central Bank, Christine Lagarde, expressed that a digital version of the euro should not be limited to the European space in order to facilitate cross-border payments.
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European Union would restrict Russian citizens from holding Digital Assets on European platforms
In response to Russian annexations of Ukrainian territory, the European Union could completely restrict access to European Digital Asset custody platforms to Russian nationals. Currently, Russians are limited to payments of a maximum of €10,000 to European platforms.
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BlackRock to offer exposure to Digital Asset companies in Europe
The world's largest Asset Manager, BlackRock, launched an ETF that will track the share price of 35 of the world's Digital Asset companies for its European clients.
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Bank exposure to Digital Assets exceeds US$ 9B
According to a report by the Basel Committee on Banking Supervision, exposure to Digital Assets by 19 of the world's largest banks exceeds US$ 9B, representing 0.01% of their risk exposure.
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Asset Manager Fasanara Capital to invest US$ 350M in Digital Assets companies
London-based Asset Manager with US$ 3.5B in AUM, Fasanara Capital, established a new US$ 350M fund focused on investing in fintech and so-called Web3-based Digital Assets companies.
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IMF: Financial Stability Board should lead global regulation of Digital Assets
After conducting studies on the regulation of stablecoins and other Digital Assets, the International Monetary Fund suggests that the Financial Stability Board (FSB) should be the body in charge of leading the global regulation of this asset class.
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IMF concludes that the Proof of Stake presents centralization risks
The International Monetary Fund concluded in a recent study that the transaction validation mechanism to which Ethereum recently migrated presents potential risks of centralization of decision-making powers in validators such as exchanges and wallet providers, "which may increase market integrity risks."
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Telefónica starts accepting payments in Digital Assets in its marketplace
After acquiring a EUR 30M stake in Spain's Digital Assets exchange Bit2Me, Telefónica has started accepting payments in Digital Assets on its platform's marketplace.
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Solidus Capital is the leading firm in Digital Assets, which provides exclusive, agnostic, and institutional services such as Liquidity, Custody Solutions, Wealth (Private Accounts and Portfolio Management), Multi-Strategy Funds, Private Placements, and other sophisticated products in conjunction with bespoke accompaniment to High Net Worth Individuals, Family Offices, Companies, Wealth Managers and Banks.
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By relying on Solidus' services, investors avoid the classic fatal mistakes:
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- Lacking information in the context and moments of the market
- Executing operations inefficiently
- Using unreliable service providers and infrastructure
- Closing of accounts and freezing of funds
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Disclaimer
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