All articles tagged with #digital currencies
By 2026, the US dollar's dominance is expected to weaken due to declining global trade reliance, shifting reserve holdings, rising US deficits, and the emergence of alternative payment and settlement systems like digital currencies and regional payment networks, which could accelerate the transition away from dollar-centric finance.
The article compares stablecoins, recently regulated by the US under the GENIUS Act, to historical national bank notes, highlighting similarities in backing and issuance, and discusses potential impacts on demand for government debt and the evolution of money systems based on historical lessons.
Crypto-related companies are going public at a rapid pace, fueled by Bitcoin's record high and investor interest in digital currencies, with several firms like Circle, Bullish, and Miami International Holdings experiencing strong debut performances, and more crypto firms planning IPOs, indicating a bullish trend in the sector's market entry.
Stablecoins, digital tokens pegged to traditional currencies, are rapidly growing as an alternative to banking and are increasingly used for international remittances and financial transactions, especially in emerging markets. However, their rise raises significant regulatory and stability concerns, with divergent approaches in the U.S. and Europe potentially fragmenting the global financial system. As stablecoins become more integral to financial infrastructure, a coordinated international regulatory response is urgently needed.
The U.S. housing market is increasingly integrating cryptocurrencies, with major mortgage firms like Fannie Mae and Freddie Mac considering crypto assets in mortgage applications, and new startups offering innovative ways to use crypto for home purchases and equity tapping, signaling a significant shift in mainstream finance and real estate.
The U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act, a bill aimed at creating a new legal framework for digital currencies, despite warnings from SEC Chair Gary Gensler that it could introduce new financial risks and regulatory gaps. The bill, which passed with bipartisan support, is intended to provide regulatory clarity and promote industry growth, but faces uncertainty in the Senate.
Federal Reserve Governor Waller discusses the U.S. dollar's role in global finance, addressing concerns about its potential decline. He outlines the various dimensions of the dollar's international role, emphasizing its dominance as a store of value, medium of exchange, and unit of account. Despite potential challenges from digital currencies, the euro, and the Chinese renminbi, the dollar's status remains strong, supported by its stability, liquidity, and widespread use in trade and finance. Waller concludes that recent developments have, if anything, strengthened the dollar's international position, and he does not foresee a significant decline in its primacy in the near future.
According to a survey by the Bank for International Settlements (BIS), 93% of central banks are already researching central bank digital currencies (CBDCs), and there could be up to 15 retail and nine wholesale CBDCs in circulation by 2030. Developing economies are leading CBDC adoption, driven by financial inclusion reasons, while advanced economies focus on financial stability and cross-border payments efficiency. Currently, there are only four CBDCs in circulation, but the survey predicts a significant increase in the number of live CBDCs by the end of the decade.
A survey conducted by the Bank for International Settlements (BIS) revealed that around 24 central banks across emerging and advanced economies are expected to have digital currencies in circulation by 2030. The majority of these Central Bank Digital Currencies (CBDCs) will be in the retail space, with several central banks already running live digital retail currencies. Additionally, nine central banks are considering launching wholesale CBDCs to enhance cross-border payments. The survey also highlighted that the share of central banks engaged in CBDC development has risen to 93%, with 60% citing the acceleration of stablecoins and other cryptoassets as a driving factor.
A survey conducted by the Bank for International Settlements (BIS) suggests that around 15 retail central bank digital currencies (CBDCs) could be in circulation globally by 2030. The study found that 93% of the 86 central banks surveyed are currently working on CBDC projects, with nine central banks indicating they are "very likely" to issue a wholesale CBDC for financial markets within the next six years. Major jurisdictions such as India, the U.K., and the European Union are seriously exploring the issuance of digital versions of their fiat currencies. The report also noted that stablecoins and other crypto assets are rarely used for payments outside the crypto ecosystem, with cross-border remittances and consumer purchases being the most popular use cases.
Andreessen Horowitz is opening its first office outside of the U.S. in London, citing a more welcoming environment for crypto entrepreneurs in the U.K. The venture capital firm believes the U.K. will become a global leader in crypto, blockchain, and digital currencies. The move comes as the U.S. cracks down on the crypto industry, with the SEC announcing lawsuits against Binance and Coinbase last week. Andreessen Horowitz also plans to launch its first crypto startup school in the U.K. to identify future talent in the crypto and Web3 space.