Here is our pick of the 3 most important Stablecoin news stories during the week.
Build it and they will come!
This seems to be the week when Central banks have got serious about actually building CBDC’s.
First, the ECB is seeking through it’s procurement procedure to acquire strategic partners for consultancy services that allow the delivery of excellent, strategic capabilities to support solving complex questions that are not only new to the ECB but also globally in the context of central banking digital currencies (CBDCs).
The services to be provided under the scope of this tender procedure are related to:
- the investigation phase of the digital euro project; and
- subject to the decision of the ECB Governing Council to continue the project after the investigation phase – realisation phase of the digital euro project.
In a clear signal of seriousness the ECB has indicated a budget of 20m EUR.
Meanwhile, the Central Bank of Brazil has chosen nine partners to help develop a digital real, Brazil’s central bank digital currency (CBDC).
Among the partners are crypto exchange Mercado Bitcoin, Santander Brasil, Itaú Unibanco and Aave, a decentralized finance (DeFi) platform.
Also this week, the Swiss city of Lugano has announced today that it will recognize cryptocurrencies as legal tender. According to Michele Foletti, the mayor of the City of Lugano, Bitcoin (BTC), Tether (USDT), and Lugano’s own LVGA Points token will be recognized as de-facto currencies.
So in summary, Central Banks are moving cautiously down the path to actually building something, in the meantime we are seeing more evidence of the political class getting more comfortable with crypto and stablecoins.
Alan Scott is an expert in the FX market and has been working in the domain of stablecoins for many years. Twitter @Alan_SmartMoney
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