Ray Dalio is one of the best economic thinkers alive. On 9 April 2020, TED interviewed him about what coronavirus means for the global economy. Here is my summary. Any errors, omissions, misunderstandings are mine.
Interviewer: Corey Hajim (TED) Interviewee: Ray Dalio, Founder of Bridgewater Associates Released 9 April 2020
I’m often asked for material about CBDCs (central bank digital currencies), blockchains / distributed ledgers, stablecoins, and cryptocurrencies. So here’s a list of reports from central banks, regulators, international organisations and other agencies. Enjoy!
This short blog post describes three different types of currency wars that seem to be happening at the moment.
The phrase “currency wars” is not new – typically is has referred to deliberate devaluation of one’s own currency to increase competitiveness of exports. If your currency is worth less, then your goods are cheaper to foreigners, so they buy more of them, which is generally good for your country.
Yet with increased discussion and relevance of fintech, wallets, central bank digital currencies, Libra, bitcoin, etc, it seems to me that there is more going on. I’ve identified three distinct wars (battles? fronts?) being fought:
In this post I discuss several differences between physical cash, and what I imagine retail Central Bank Digital Currencies (CBDCs) might end up looking like. The main differences between CBDCs and cash are accessibility, anonymity, and interest.
Accessibility means “who can use it?”. Pretty much anyone can use cash.
Anonymity describes how much information about the payer and recipient’s identity is needed to make a transaction. Cash doesn’t require the payer or recipient to provide any identity information.
Interest describes how much the number goes up if you leave it sitting in its natural state without lending it to anyone. Physical cash does not have interest.
I’m absolutely thrilled to be able to write about the open sourcing of Project Ubin Phase II, a key project that our team has been working on for the past seven months with the Monetary Authority of Singapore (MAS), ten banks, and our partnerAccenture.
What is Project Ubin? It’s probably the most advanced starter kit out there for anyone wanting to explore blockchains for banking:
Over the past couple of years, R3 has worked closely with a number of central banks to explore if distributed ledgers could support their policy goals, and I have had the privilege to participate in a number of these projects.
What have we learnt? What is important? What do central banks care about? While I can’t speak directly for individual organisations, I have collated my own thoughts, and wanted to share these ahead of the Singapore FinTech Festival this year (13-17 Nov) when the results of Singapore’s “Project Ubin” experiments will be announced.
There has been a lot of hype around central banks, interbank payments, blockchains, and central bank digital currencies (CBDCs), but the narrative has become confusing and often misses the point. What’s going on? Actually two independent things are being actively explored:
Decentralisation of interbank payment systems
Wider access to digital central bank money (Central Bank Digital Currencies – CBDCs)