Inefficiency and environmental impacts make Bitcoin unfit as a payments network, per Sam Bankman-Fried. We think CBDCs pose better chances.

The president’s sweeping order on digital assets calls for research into a CBDC.

Tencent’s WeChat lowered its SMB fees in response to a government directive, and CBDC adoption may complicate business further.

An International Monetary Fund (IMF) report exploring six central bank digital currency (CBDC) case studies shows there’s no “one size fits all” that works in every market.

A new paper by the Fed outlines how banks can adapt to the creation of a US central bank digital currency (CBDC). Bank stablecoins could complement it, but standalone issuers would face trouble.

Both countries are researching the regulatory nuances for a potential CBDC while China and India push ahead with their own CBDCs.

CBDC Launches Could Normalize Crypto Payments. Earlier this year, China became the first major market to launch a central bank digital currency (CBDC), after extensive pilots across the country generated $8.2 billion in transaction volume during H2 2021. We expect major economies to speed up their efforts to avoid getting left behind as geopolitical stakes rise.

CBDC development in the US would take “years rather than months,” according to Federal Reserve Chairman Jerome Powell. Meanwhile, the EU is expected to launch a pilot program in 2022, and India reportedly will begin trials for a digital rupee by the close of 2021. Prediction. India will beat others to the punch in becoming the next major market to launch a CBDC in 2022.

China is a world leader in the race to develop a government-backed cryptocurrency, known as a “central bank digital currency” (CBDC). Such a currency could threaten the dollar’s hegemony in the global financial system.

Adding traditional cryptos (e.g., Bitcoin), stablecoins, and CBDCs to the list of payment contenders sets up a long competitive and regulatory fight to secure dominance in the metaverse economy. And what about that giant carbon footprint? Blockchain already faces an energy consumption problem that could become an environmental crisis as crypto payments grow.

India plans to pilot a CBDC early this year, and indicated it may connect the digital currency to its instant mobile bank-to-bank transfer system, which could help boost adoption. Elsewhere, CBDC ambitions are less developed, but around 90% of central banks worldwide are exploring creating CBDCs, according to Reuters.

Earlier this week, the central bank reportedly confirmed that the country’s central bank digital currency (CBDC) pilot will launch this year. This would give the central bank another government-run payment system that it may want to protect. The big takeaway: Meta is persevering with building out its payments offering, but it still has some ways to go before its C2B payment system launches in Brazil.

Stablecoins and CBDCs could help address those concerns. The big takeaway: Payments firms that choose to ignore crypto’s potential risk missing out on a big opportunity. We project global crypto transaction volume will rise 70% this year to hit $10.4 billion as more retailers cater to growing interest from shoppers.

Its provisions include directing the Treasury Department to produce a report, and support for the Federal Reserve’s ongoing research into a central bank digital currency (CBDC).

It also coincides with Beijing building out its central bank digital currency (CBDC)—it recently updated a pilot version of its CBDC wallet that adapts to Apple’s latest mobile software. The parallel actions reflect the government’s efforts to regain control of its financial system. Related content: Want to learn more about what China’s regulatory crackdowns mean for mobile payments?

Article: IMF’s report shows there’s no simple way to make CBDCs.

Since the CBDC can be integrated into other payment services, it more tightly ties any transactions that customers make with the digital yuan to government rails, offering visibility into transactions across the country’s ecosystem.

Central Bank Digital Currencies (CBDCs) Will Blossom Outside the US. CBDCs may be a more viable long-term crypto payment solution for merchants and payment providers, as they limit volatility while improving legitimacy. China’s vast digital yuan pilots could be a blueprint for other countries, and we expect India to launch a stablecoin this year.

CBDC: A type of cryptocurrency that is still only in the pilot and experimentation stages. If implemented, CBDCs would be offered by central banks and reach a level of parity with other forms of money, giving them the same legitimacy and position within the banking system. What crypto debit card programs exist worldwide? Read Next.

Central bank digital currencies (CBDCs) could also be strong payments contenders, but development is slow—the US is years away from launching a digital dollar.

China’s efforts to roll out a CBDC could create more competition for mobile payment giants like Ant and Tencent, which are already under serious regulatory scrutiny.

China could be ready to launch the digital yuan in early 2022, and India is building a CBDC framework while also warming up to Bitcoin.

The government will reportedly begin testing its CBDC in early 2022—if all goes well, we could see an official launch later in the year. BNPL: BNPL’s lending and disclosure practices will come under scrutiny from the Consumer Financial Protection Bureau (CFPB).

That’s why JPMorgan now offers private clients access to crypto funds, if they request it, and why it’s making preparations in anticipation of central bank digital currency (CBDC) launches.

And as the country weighs minting a central bank digital currency (CBDC), regulation for third-party digital assets might set the stage for CBDC adoption. BNPL. Roughly 60% of consumers in Australia have used a BNPL solution, according to a Marqeta report.