The Bank for International Settlements (BIS) wrote an article for the Annual Review of Economics that laid out work done on Central Bank Digital Currencies (CBDCs) to date. The paper puts CBDCs in context of all payment methods and considers why and how CBDCs are being developed and the challenges central banks are grappling with.

The Monetary Authority of Singapore (MAS) ran a global retail CBDC challenge competition with the results announced at the Singapore Fintech festival. It received 300 submissions from over 50 countries.

The Bank of International Settlements (BIS) has issued a paper ‘What does digital money mean for emerging market and developing economies?’. The paper questions whether stablecoins are the answer to all problems and whether other digital solutions have a role to play.

The US Securities and Exchange Commission (SEC) has approved the ProShares Bitcoin futures Exchange Traded Fund (ETF) application, the first cryptocurrency the US financial markets regulator has approved.

Whether CBDCs are designed as token- or account-based, regulations such as those governing money laundering and the funding of terrorism mean total anonymity/privacy is not possible. Given that while privacy is highly valued in principle, the public take little to no action to safeguard their privacy in practice, is it so important?

The future of cash is, without doubt, the most discussed, presented and written about topic in the cash and retail payments industry during the last 10 years. The topic took on a new dimension with the arrival of COVID-19, the effects of which feature in a discussion paper, titled simply ‘The Future of Cash’.

With the UN Climate Change conference, COP 26, taking place through early November, we thought it would be appropriate to review the environmental work of stakeholders in the cash industry over the last few years.

On 20 October the UK House of Commons had a debate about access to cash for nearly 90 minutes. 25 MPs spoke across every part of England, Scotland and Wales, including the Economic Secretary to the Treasury.

The Economist’s 1843 magazine recently published an article, ‘The Mystery of the Missing £50 Billion’. It tells the story of a young lady caught at Heathrow with five suitcases containing nearly £2 million in banknotes.

Whilst we may all be tired of hearing about COVID-19 and its impact on just about everything to do with our everyday lives, it is important for those involved with cash and payments to examine its impact on cash and payments to date and perhaps, more importantly still, the implications for the future.

There are concerns that with the UK’s contactless limit rising to £100, crime is more likely. In addition, the lack of ‘friction’ at the point-of-sale could increase the risk to retailers of unintended losses from consumers who present a card without it registering and then leaving the shop.

With under 100 days to go to the winter Olympics, China is encouraging domestic and foreign retailers to enable payment using the e-Yuan, China’s CBDC. Although foreign visitors will not be able to travel to China for the Olympics, it continues to work towards having the e-Yuan up and running.

One-time passwords (OTP) are a central part of payment security. It is a concern, therefore, to read about hackers hijacking OTPs sent via SMS by Singapore banks to their customers, resulting in fraudulent credit card transaction worth S$500,000, as recently reported by the Monetary Authority of Singapore.

Quick Response (QR) codes, tiny black-and-white squares, can be read at ten times the speed of traditional bar codes; hence they were called ‘Quick Response’ codes or QR codes for short. They are two-dimensional black and white barcodes that can reveal a URL (web address) or other information with a scanning device.

The Bank of Canada (BOC) has a Currency Inventory Management Strategy (IMS) based on its high-speed sorters that capture the image of every banknote, including the serial number, along with the date the banknote was created, shipped from the central bank’s distribution sites and returned to them.

Ross MacDiarmid, Executive Director of the Mint Directors Conference (MDC), hosted Professor Pasquale Sgro, Professor Franz Seitz and Guillaume Lepecq to consider the question in the title, under the banner of ‘no such thing as a free lunch’.

The subject of Central Bank Digital Currencies (CBDCs) has moved from ‘vague awareness’ in around 2016 to ‘big news’ today. To help people keep up, the publishers of Cash & Payment News™ (CPN) have decided to start publishing a weekly newsletter dedicated to CBDCs.

Benoît Cœuré, Head of the BIS Innovation Hub, recently spoke at The Eurofi Financial Forum. The focus of his speech was that central banks need to move faster on Central Bank Digital Currencies (CBDCs), with the private sector already on the move.

CashEssentials – the cash and payments think tank – has launched the CashTech Forum to promote innovation and technology, thereby ensuring a sustainable and future-proof cash ecosystem.

The Central Bank Payments conference has had to become virtual and will now take place as four separate half day events. These will be held on 8, 15, 22 and 29 November.