US lawmakers have urged Facebook boss Mark Zuckerberg to ditch his company’s cryptocurrency plans.

It was announced recently that Novi, a digital wallet, will enter a trial period in Guatemala, allowing cryptocurrency payments. Facebook is also reported to have revived plans to launch a cryptocurrency called Diem.

A letter signed by five Democratic Senators was sent to Zuckerberg outlining concerns about Facebook’s involvement in crypto, and demanding digital currency projects are discontinued.

The letter concludes: ‘Facebook cannot be trusted to manage a payment system or digital currency when its existing ability to manage risks and keep consumers safe has proven wholly insufficient.

## 'Immediately Discontinue Nivot Pilot'

‘We urge you to immediately discontinue your Novi pilot and to commit that you will not bring Diem to market.’

The letter from Brian Schatz (D-Hawai‘i), Senate Banking, Housing, and Urban Affairs Committee Chairman Sherrod Brown (D-Ohio), Richard Blumenthal (D-Conn.), Elizabeth Warren (D-Mass.), and Tina Smith (D-Minn.) reads: ‘We write to voice our strongest opposition to Facebook’s revived effort to launch a cryptocurrency and digital wallet, now branded “Diem” and “Novi,” respectively. In October 2019, Senators Schatz and Brown wrote to members of the Diem Association’s predecessor, the Libra Association, and expressed deep concerns about the risks the project posed to consumers and the financial system. Facebook subsequently shelved Libra amid regulatory scrutiny, but you did not address our concerns before resuming this endeavour.

‘On multiple occasions, Facebook has committed not to launch a digital currency absent federal financial regulators’ approval. In prepared remarks before the House Financial Services Committee in October 2019, you said that Facebook would “not be a part of launching the Libra payments system anywhere in the world unless all US regulators approve it.” More recently, David Marcus, the executive overseeing Facebook’s digital currency efforts, said, “\[w\]e are definitely not going to launch without the proper regulatory framework.”

‘Despite these assurances, Facebook is once again pursuing digital currency plans on an aggressive timeline and has already launched a pilot for a payments infrastructure network, even though these plans are incompatible with the actual financial regulatory landscape - not only for Diem specifically, but also for stablecoins in general. The agencies that oversee the US financial system are studying the risks that stablecoins pose to financial stability. Accordingly, they are considering how to address these inherent risks and clarify regulation and supervision of these products.’

## 'Facebook Cannot be Trusted'

It continues: ‘You have not offered a satisfactory explanation for how Diem will prevent illicit financial flows and other criminal activity. The intergovernmental Financial Action Task Force warned in a report to the G-20 finance ministers that stablecoins’ “propensity for mass-adoption makes them more vulnerable to be used by criminals and terrorists to launder their proceeds of crime and finance their terrorist activities.” The President’s Working Group on Financial Markets said in December 2020 that stablecoins “are likely to attract illicit actors and, without appropriate mitigation measures, allow evasion of key public policy objectives.”

‘Facebook cannot be trusted to manage a payment system or digital currency when its existing ability to manage risks and keep consumers safe has proven wholly insufficient. We urge you to immediately discontinue your Novi pilot and to commit that you will not bring Diem to market.’

[CNBC](https://www.cnbc.com/world/?region=world) carried responses issued on behalf of Facebook and Diem.

The broadcaster said Facebook claims to have already addressed many of the concerns raised by the senators. The social media giant had said that Novi and Facebook accounts are kept separately to ensure privacy and protection and added that the wallet was built to be completely secure.

## Privacy Top of Mind for Customers

The statement is reported to say: ‘We know privacy is top of mind for Novi customers, so it will always be top of mind for us. We prioritise the security and privacy of people’s information by encrypting sensitive financial information'. If we determine a transaction is unauthorised, we provide a full refund back to a person’s Novi balance. People’s Novi accounts and Facebook accounts are separate.’

CNBC added that Diem had highlighted it is not part of Facebook, which is just one of two dozen members of the Diem Association. The association is a network of ‘merchants, payment service providers, social impact partners, and other entities’ that are ‘dedicated to building a blockchain-based payment system that supports financial innovation, inclusion, and integrity’.

A statement carried by CNBC adds: ‘Diem welcomes the opportunity to engage with members of Congress on the robust controls we have spent two years building into our payment system.

‘Unfortunately, today's letter from lawmakers to Facebook misunderstands the relationship between Diem and Facebook. Diem is not Facebook. We are an independent organisation, and Facebook's Novi is just one of more than two dozen members of the Diem Association. Novi's pilot with Paxos is unrelated to Diem.’



Facebook Should 'Discontinue' Crypto Projects

Former Facebook employee and Facebook whistleblower, Frances Haugen, has said that she is financially supporting herself due to crypto investments she has made. She told [The New York Times](https://www.nytimes.com/) that for the foreseeable future, she will be fine as she invested in crypto at 'the right time.'

In a phone interview with Cheddar, Haugen said that when she first heard of cryptocurrencies from her brother in 2017 she thought they were 'absolutely crazy'. As a result, she went to a meetup with him and was surprised by how many people loved the idea of cryptocurrency. She said:

"I couldn't understand it because I didn't get it. But I think everybody gets this, like, 'what is money,' right? It's just something that we use to trade and barter with, but the technology behind it is what's really interesting."

## 'Facebook Prioritise Growth'

37-year-old Haugen recently accused her former employer, Facebook, of prioritising growth over safety. She said:

"I do not think that Facebook has prioritised privacy overgrowth. I feel like there are some leaders within the company who have, but for me, it's always been that data privacy and security are foundational to the success of our business."

The data scientist admitted that she has some concerns over the future of her career. However, she said that the investments she made in crypto are enough to support her for now.

"It's a big risk for me," she explained, "but I've been living a frugal lifestyle and investing in crypto since 2015 so that I could feel secure in my ability to leave the industry if I decided to. For now, that security is enough."

More [Business news](/news/category/crypto-business-news). 



FB Whistleblower Supporting Herself with Crypto

McLaren Racing have announced that they are launching their first collection of digital art NFTs on the Tezos blockchain. The collection enables buyers to build their own digital MCL35M Formula One car by purchasing parts of the popular F1 car.

You can unlock your first part of the MCL35M for free when you register through the collections website.

## McLaren and Tezos Partner 

The first collection drop will include 22 digital components, and aims to serve a global community of collectors and fans.

The McLaren Racing team's Official Technical Partner, Tezos, are collaborating with McLaren to create the NFTs. Launching on the Tezos blockchain will ensure energy-efficiency for collectors.

According to the McLaren [website](https://www.mclaren.com/racing/partners/tezos/mclaren-racing-creates-mclaren-racing-collective/), the first collector to complete a full MCL35M digital F1 car will be rewarded with a VIP race weekend experience next year. The initiative hopes to drive long-term engagement with fans.



McLaren Racing Team Launch NFTs

In a recent tweet, Elon Musk has called Dogecoin (DOGE) the 'people's crypto'.

Elon Musk [tweeted](https://twitter.com/elonmusk/status/1452348126753349640): "That’s why I decided to support Doge – it felt like the people’s crypto." The meme coin has seen an increase in popularity recently as Musk has shown his support for the coin publicly. However, Dogecoin is still around 63% away from its lifetime peak despite Musk's attempts to send the meme coin soaring.

## SHIB Competes with DOGE

Competing meme coin, Shiba Inu (SHIB) has recently skyrocketed over 500% and has recently taken the lead ahead of Dogecoin. Elon Musk took to Twitter to say that he isn't holding any SHIB, only DOGE. Shiba Inu [tweeted](https://twitter.com/ShibaInuHodler/status/1452313323261861891?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1452332435266576395%7Ctwgr%5E%7Ctwcon%5Es2_&ref_url=https%3A%2F%2Fu.today%2Felon-musk-calls-dogecoin-peoples-crypto-rejects-shiba-inu) 'Hey [@elonmusk](https://twitter.com/elonmusk) How Much [Shib](https://twitter.com/search?q=%24Shib&src=cashtag_click) You Are Holding!' to which the businessman replied 'None'.

## Puppy Post Boosts SHIB

Musk shared an image of his puppy a few days ago which helped to boost SHIB up the market ranks, but after he has admitted not owning any SHIB, the meme coin is reportedly down 15%.

Dogecoin has been struggling to keep up with Shiba Inu, but is now up 12% in the last week thanks to Musk's tweet.

Find out more about [Dogecoin](/coins/doge)

Doge is the 'people's crypto'- Elon Musk

Rolls- Royce have confirmed that they are commissioning a one-off NFT. The Black Badge NFT will be based on the new Ghost car which is shown in the digital animation. However, this has not been officially confirmed by the company.

Black Badge is Rolls- Royce's top of the line offering that allows customisation of their bespoke collective cars. The company found inspiration from company's such as COMME des GARCONS for the Black Badge offering.

## 'Proudly Practice Self-Expression'

Rolls-Royce Chief Executive, Torsten Muller-Otvos says "Black Badge is an attitude that represents an authentic and confident response to the desires of a new group of clients who proudly practice bold self-expression".

The artist behind the NFT is [Mason London](https://masonlondon.com/videoandanimation). Mason London is a freelance designer, illustrator and animator based in London. Mason London has done previous work for the likes of Nike, Wiley and Adidas.

The NFT is said to debut on the 28th of October.

More [NFT news](/news/category/nft-news).


NFT News: Rolls-Royce to Release NFT

Electric car-maker [Tesla](https://www.tesla.com/en_GB/) yesterday reported record revenue and profits for the third quarter of the year.

However, Tesla's accounts also record a $51 million impairment charge relating to its bitcoin investment.

The company, led by CEO Elon Musk, reported no new purchases or sales of digital assets in its Q3 accounts, just like in Q2. However, under accounting rules for digital assets a company must record an impairment charge if the value of an asset it holds falls during the quarter it is reporting on. Any increase in value is not reported as a gain on the accounts.

## Tesla Purchased 41.5 billion Bitcoin

It is reported that because Tesla holds crypto as an 'indefinite-lived intangible asset' the company is required by accountancy rules to record the value of bitcoin at the time of purchase. If the BTC value falls well below the price at the time of purchase, Tesla must write down the value of its holdings as an impairment charge. 

It was announced in February that Tesla had purchases $1.5 billion-worth of bitcoin and sales of around 10% of that holding saw Tesla's balance sheet later boosted by some $272 million.

Plans to allow the purchase of Tesla vehicles with bitcoin were suspended in May, amid apparent concerns about the environmental impact of the cryptocurrency. However, over the summer, Musk stated that the plan could 'likely' be resurrected if ecological concerns were addressed.

More [Bitcoin news](/news/category/bitcoin-news).

Tesla Records $51m Bitcoin Impairment Charge

Just five years after the Reserve Bank of Zimbabwe cracked down on cryptocurrency processing, the country’s stance on crypto seems to be softening and crypto ETFs could be on the way.

Finance and Economic Development Minister Professor Mthuli Ncube has admitted cryptocurrency is ‘actually unstoppable’ and indicated regulation for trading digital assets is on the way for Zimbabwe.

Crypto ETFs on the Victoria Falls Stock Exchange platform is part of the consideration.

Ncube was speaking during the Global Business Forum in Dubai, outlining investment opportunities in Zimbabwe.

## Zimbabwe 'Ready to Make Concessions'

He said the country is ready to make concessions on cryptocurrency, admitting it is impossible to run away from cryptocurrency.

He said: ‘Our view is that we do not want it to be a currency. Want this to be an investment class. Through the Victoria Falls Stock Exchange platform, we will try to create crypto based products there, which are ring fenced within the offshore zone.

‘We have taken the first step already and created a sandbox, at the Reserve Bank of Zimbabwe (RBZ), where the idea and everything else is being tested in a safe regulated environment where it will then migrate to this safe Victoria Falls environment.’

Ncube continued: ‘I was actually quite surprised, I think easily, 30 per cent of our youth are invested in crypto, easily. It is actually unstoppable, but the idea is to then regulate it properly; create a safe environment for everyone.’

## Partnership With Dubai Investor

The Ministry of Finance is, he said, working with an investor in Dubai to develop a crypto index, which requires the Zimbabwean Treasury to work out how to weight a crypto product.

Ncube added: ‘So, once we have the weights of the various crypto assets arising from rating, we can then create an index; on the back of the index, you can then create a crypto ETF (exchange traded fund).

‘That is what we are looking at and some investors are working with us to create the exchange traded funds; it's up to the investors to do that, our job is to support.

‘But we invested a lot in trying to understand it; so that is where we are heading in terms of crypto currencies.’

More [Business news](/news/category/crypto-business-news).

Zimbabwe Latest News: Thumbs Up to Crypto ETFs

Jack Dorsey, CEO of American financial service provider, Square, has revealed plans on Twitter to build an open-source Bitcoin mining system with hopes to further decentralise the Bitcoin network.

He tweeted “Square is considering building a Bitcoin mining system based on custom silicon and open source for individuals and businesses worldwide. The more decentralised this is, the more resilient the Bitcoin network becomes.”

## 'Bitcoin Mining Should be Easier'

"Mining isn’t accessible to everyone. Bitcoin mining should be as easy as plugging a rig into a power source. There isn’t enough incentive today for individuals to overcome the complexity of running a miner for themselves.”

Square, Inc. is based in San Francisco, California and was founded in 2009 by Jack Dorsey and Jim McKelvey. The company launched its service Square Cash, which lets anyone with a debit card trade fiat for BTC. The company also offers payment processing services to merchants, charging 2.75 percent per swipe of a credit or debit card.

Dorsey believes that further decentralising the Bitcoin network will be critical for securely settling the transactions "well after the last bitcoin is mined."

More [Blockchain news](/news/category/blockchain-news).

Square's Jack Dorsey to Build Bitcoin Mining System

Polkadot has had approval from blockchain's on-chain governance to debut parachain auctions from the 11th of November, that will run until the 9th of December.

This will enable the fast deployment of parachain operators, which are key to Polkadot's scaling capacity.

## What are Parachains?

Parachains are intended as a solution to one of blockchain technology's biggest problems; scalability. Most blockchains either limit the number of transactions they can process (Bitcoin) or charge increasingly high fees (Ethereum). 

The Polkadot parachain auctions will run for five consecutive weeks, and the initial bidding period will be two days long, followed by a five-day ending period. This intentionally limits the amount of time available to make bids, which is intended to counteract any large bidders camping out on the auction and forcing smaller participants to pay inflated prices.

More [Altcoin news](/news/category/altcoin-news) 

Parachain Auctions Approved for Polkadot

Bitcoin price has hit $60,000 for the first time since April this year, after reports of approved Bitcoin ETF trading.

The price of Bitcoin breached the $60K mark on Monday and is trading at a price of $61,051 with a market cap of more than $112 billion.

## ETFs Likely To Be Approved

Bloomberg reported that there was indications to suggest that the Securities and Exchange Commission ([SEC])(https://www.sec.gov/) would be likely to approve several Bitcoin futures ETFs to begin trading next week.

The CME group is seen to have the most likely chance of being approved. If this happens, it will make Bitcoin even more attractive to traders and help push up prices of the cryptocurrency higher.

## SEC Give Positive Reception

The approval of a Bitcoin ETF was also highlighted back in August when VanEck submitted a proposal to the SEC which received a positive reception from them.

Many expect that once Bitcoin futures are approved, there will be a new interest in trading it and this would help push up its price.

Bitcoin Breaks $60K for First Time Since April

Uniswap Labs has recruited respected former Washington operative Hari Sevugan.

The appointment of the former senior spokesman for President Barack Obama comes amid efforts to define a regulatory strategy for crypto in the US capital.

Sevugan joins, Uniswap Labs, the largest exchange in decentralised finance (DeFi), as communications chief.

He will manage public-facing communications for the developer behind Uniswap which, according to a spokesperson quoted by CoinDesk, will include ‘helping the company tell its story to existing users and new audiences and managing media affairs’.

## Sevugan Has Tech Experience

Sevugan brings an impressive CV, including serving as Obama’s senior spokesperson for the 2008 presidential campaign, the deputy campaign manager for brand and media for former Mayor Pete Buttigieg’s 2020 presidential campaign and as the national press secretary for the Democratic National Committee.

CoinDesk quoted Sevugan as saying he had some tech experience as well, having ‘worked with several tech companies and with founders at a political-tech incubator’.

## Crypto is Seen Through 'Lens of Value'

It goes on to quote him as saying: ‘Politics, when done right, is also about taking complex issues of policy and making them understandable to everyone so everyone feels a sense of ownership over those decisions. Crypto is opaque and intimidating to many outside of it. I want to help more people connect to it by making it more relatable and understandable.’

‘One of the fundamental challenges, by virtue of what makes headlines, is that crypto is seen only through the lens of value, and not values.’

This is the latest executive level hire by Uniswap Labs, following the appointment of Mary-Catherine Lader as chief operating officer.

To find out more about Uniswap, including the latest price, visit [Learn Moni](/articles/learn-moni).

Former Obama Aide Joins Uniswap

Vladimir Putin, the President of Russia, believes cryptocurrencies have value but are not yet ready to be part of energy trading.

Saying it was too early for crypto to replace the US dollar in oil trades, Putin also pointed to the energy consumption of cryptocurrencies as a possible obstacle to widespread use.

His comments come just months after Alexander Novak, Russia’s deputy prime minister, suggested the country could abandon the use of US dollars for oil contracts in response to ongoing economic sanctions.

## 'Crypto Has Value'

Putin was speaking at the Russian Energy Week event in Moscow on Wednesday when he said it’s ‘too early to talk about the trade of energy resources in crypto’.

In conversation with CNBC’s Hadley Gamble, Putin added: ‘I believe that it has value, but I don’t believe it can be used in the oil trade.

‘Cryptocurrency is not supported by anything as of yet. It may exist as a means of payment, but I think it’s too early to say about the oil trade in cryptocurrency.’

While Putin believes it may be too early for crypto to trade Russia’s key export, oil, he was outspoken about reliance on the dollar.

Putin told [CNBC](https://www.cnbc.com/world/?region=world): ‘I believe the US makes a huge mistake in using the dollar as a sanction instrument. We are forced. We have no other choice but to move to transactions in other currencies.

‘In this regard, we can say the United States bites the hand that feeds it. This dollar is a competitive advantage. It is a universal reserve currency, and the United States today uses it to pursue political goals, and they harm their strategic and economic interests as a result.’

Crypto has ‘Value’ - Putin

Visa has recently launched an NFT- centric programme with creator of the NFT character, Aku, Micah Johnson, who is a well known artist amongst the crypto community.

The aim of the programme is to create a range of Visa collectibles using blockchain technology and support the creator economy.

## Visa Crypto Collectible

The first piece of work is an exclusive Visa Crypto Collectible card which demonstrates how cryptocurrency works on the Visa network. The card uses NFT technology to bring this all together so it’s only available as a digital asset.

The Vice President and Head of Crypto at Visa, Cuy Sheffield, tweeted "We believe that we are at the beginning of digital renaissance in the world of art and content creation- a flourishing ecosystem of artists, musicians, writers, photographers and curators building communities at the intersection of culture and commerce".

For more [NFT news](/news/category/nft-news).

VISA News: NFT Programme Launched

Bitcoin regulation is on the way, and the leading cryptocurrency is ‘worthless’.

That’s the view of JPMorgan Chase & Co chief executive Jamie Dimon.

He said: ‘No matter what anyone thinks about it, government is going to regulate it. They are going to regulate it for (anti-money laundering) purposes, for (Bank Secrecy Act) purposes, for tax.'

Dimon was speaking at the [Institute of International Finance](https://www.iif.com/) Annual Membership Meeting earlier this week.

The head of the largest US bank has been an outspoken critic of crypto, but over the summer JPMorgan gave wealth management clients access to cryptocurrency funds. That means the bank's financial advisers can accept buy and sell orders from clients for five cryptocurrency products.

## Regulation Won't Have Immediate Impact

His comments on bitcoin regulation didn’t appear to have any immediate impact on markets.

Dimon made it clear his views are different from the banks, but said he remains sceptical.

He added: ‘I personally think that bitcoin is worthless. I don't think you should smoke cigarettes either.

‘Our clients are adults. They disagree. If they want to have access to buy or sell bitcoin - we can't custody it - but we can give them legitimate, as clean as possible access.’


Cryptocurrency Regulation is Coming

The United States is now the number one Bitcoin mining location after China announced plans to restrict cryptocurrency activity in the nation.

Bitfury, a US-based mining company, has recently opened a mining facility after receiving $80 million in funding from an international investor. Bitfury will be setting up its mining center in Georgia and is expected to provide over 100 jobs for Georgian citizens with salaries around $50,000 a year.

## Georgia Becomes Mining Hub

Georgia is known for being one of the friendliest countries in the world for Bitcoin miners and miners from all over the world have been flocking to set up mining centres in Georgia.

This move comes after China announced its plans to crackdown on cryptocurrency activity within the nation's borders. Mining centres are now expected to be set up in parts of the world that are more crypto-friendly, with Georgia being one of them.

More [Business news](/news/category/crypto-business-news).

US Top Location for Mining After China's Crackdown

Ripple, provider of the leading enterprise blockchain solution for payments, announced a new partnership with Nelnet, a financial services company based in Lincoln, US.

## New Liquidity Options

Through this partnership, Ripple's xRapid product will provide new liquidity options to ensure affordable, efficient and fast money transfers for the education industry.

"As education is heavily reliant on sending remittances to foreign countries, there's no better partner than Ripple to advance the already existing robust network within the higher education vertical ," said Carol Coye Benson, an executive vice-president at Nelnet.

The Ripple platform provides a seamless experience to transfer money globally with on-demand liquidity, assurance level, and transparency in a fraction of a second through its product xRapid. The investment will fund solar energy projects in the US in order to support a more stable and cleaner energy future.

More [Business news](/news/category/crypto-business-news).


Ripple News: Partnership with Nelnet

When Forbes magazine, widely-recognised as the bastion of strategic investing, publishes an article touting Non-Fungible Tokens as a _must have_ and declaring them an asset class that is _here to stay_, as they did last summer, investment communities were officially being put on notice - it is time to start talking about NFTs. 

Let’s start with a simple description: Non-Fungible Tokens, or NFTs, are tokens guaranteeing ownership of a distinct and unique asset — usually a digital asset such as a piece of art, music, or even a video. NFTs are digital proof of ownership used to represent virtually any type of real or digital item. NFTs are _created_ and _managed_ on digital ledger technology systems referred to as blockchains with the Ethereum network being the most popular. 

If that isn’t helpful, we’ll put it this way: “Non-fungible” tells us that the asset is unique and _cannot_ be replaced with anything. For example, one bitcoin is fungible — you can trade one for another bitcoin, and you will have exactly the same thing. A one-of-a-kind trading card, on the other hand, _isn’t_ the same thing.  It is one of a kind.  It is…non-fungible.

The important thing to remember is that no two NFTs are the same.

Here’s how and where to buy them.

## Places to Buy Non-Fungible Tokens

In most cases, you will be required to set up and fund a crypto wallet with Ethereum (a popular cryptocurrency) as one of the first steps in buying NFTs on exchanges (or marketplaces). MetaMask is one of the most common for purchasing NFTs and also seems to be the easiest crypto wallet for newbies to set up.

The popularity of NFT investing is proliferating a variety of new trading platforms where you can buy, sell, and even create them. Based on our research, we believe the following three marketplaces are the most resourceful for those who are new to NFT investing. 

### OpenSea

Arguably the most popular choice, OpenSea is the largest digital marketplace for NFTs offering millions to choose from in categories like art, music, and collectibles. Launched back in 2017, OpenSea continues to focus on offering consumers a trading experience that is quick, easy, and fun.  In fact, the marketplace recently launched an app for users in the Google Play and Apple App Store.

One of the key advantages of using OpenSea is the platform’s application of smart contracts to keep transactions legit. The advantage being that if either party _doesn’t_ fulfill their end of the deal, the transaction becomes void and neither party is out anything.

### Rarible

The [Rarible](https://rarible.com/) marketplace is an all-in-one platform that was launched in 2020 where creators, sellers, and buyers of NFTs can convene to trade and conduct their business. Quite simply, new investors interested in a creator centric NFT marketplace that allows for creating, selling, or collecting NFTs will find that Rarible is an appealing platform to use because of how it simplifies the process of trading without needing a middleman.

### Nifty Gateway

Launched in 2018, [Nifty Gateway](https://niftygateway.com/) is an NFT digital art marketplace that makes it easy for users to buy and sell NFTs as easily as one can buy products on eBay. Nifty Gateway offers NFTs from celebrities, popular digital artists, and major brands. It is a marketplace that distinguishes itself as a platform that continues to build a wide offering of desirable, high-value assets that have huge investment potential. 

One great thing about Nifty Gateway is that this platform allows you to buy and sell NFTs in US dollars, meaning that besides a crypto wallet you can also connect your account directly to your bank.

## Now What?

The opening up of NFTs as another class of investments creates a wide array of opportunities. Consider that it was only four years ago that the head of JP Morgan infamously called Bitcoin “worse than tulip bulbs” referring to the Tulip Mania bubble in the 1600s. Today, that same bank is looking at how cryptocurrencies may be an alternative to gold assets for hedging against inflation. 

NFTs are now in a similar place to where cryptocurrencies were a couple of years back – the opportunity has not yet been seized in the mainstream. None of us have a crystal ball, and you always want to be prudent in your research, but the bottom line is that millennials and Gen Z are living lives that are becoming increasingly more digital. Isn’t it only natural to want to take digital representations of luxury brands, music, and art into these worlds?  Now you can with NFTs.

We Need to Talk About Non-Fungible Tokens

The findings of a major study of digital currencies by several central banks have been published.

The Bank of International Settlement (BIS) and seven central banks have conducted work on retail central bank digital currencies (CBDCs) and analysing policy options and practical implementation issues.

## Digital Currencies Report

Three reports have been published exploring how CBDCs could best meet users' future needs through developing interoperable systems that support private innovation while preserving public trust.

A statement from BIS said extensive cooperation and dialogue will be required to develop and run a CBDC, preserving the centrality of central bank money for future systems that anchor public trust and support public welfare

It adds: ‘For central bank digital currencies (CBDC) to work effectively, public and private institutions need to cooperate to ensure integration with existing payments systems; to anticipate customers' future needs; and to support innovation while preserving public trust, privacy and stability in the broader financial system.’

## Initial Research

A group comprising Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Federal Reserve, Sveriges Riksbank, Swiss National Bank and BIS, has built on initial research into CBDC foundational principles from 2020.

Although a retail CBDC is yet to be issued by any of these banks, this ongoing research is seen as a positive step for the wider adoption of cryptocurrency.

The BIS statement continues: ‘Delivering on the future needs of consumers would require systems that encourage innovation, choice and competition among a diverse mix of intermediaries.’

## Detailed Study

The first report looks into how CBDC systems can be designed with private-public collaboration and interoperability to achieve that objective. The report acknowledges that running a CBDC system would be a major undertaking for a central bank, especially ensuring policies were in place to protect privacy and govern access to payment data.

The second report explores how, in a fast-changing tech landscape, a CBDC could serve individuals and organisations best. Learning from the lessons of previous payment innovations, the report recognises that utilising existing networks is often required.

Outlined in the third report are the potential implications of CBDC on banking systems. A major consideration is giving the existing financial system time to adjust and the flexibility to use safeguards to influence CBDC adoption.

## Reactions

Christine Lagarde, ECB president and chair of the group of central bank governors responsible for the reports, said: ‘Central banks have a responsibility to ensure that citizens have access to the safest form of money – central bank money – in the digital age.

‘These reports are evidence that policymakers are enhancing their domestic projects with international cooperation, sharing ideas on the best technological innovations to provide fast, easy and secure means of payment in the 21st century.’

Benoît Cœuré, Head of the BIS Innovation Hub and working group co-chair, added: ‘CBDCs can foster innovation and preserve the best elements of the current system as it evolves. This group is helping central banks to answer difficult and practical questions about how to offer safe and neutral currency with interoperable systems that harness new technology and serve the public.’

Sir Jon Cunliffe, Bank of England Deputy Governor for Financial Stability and working group co-chair concluded: ‘This collaborative input from a group of central banks will help make sure that innovation in an increasingly digital world, the role the private sector plays in any CBDC system to help it meet future payments needs, and how the financial system might evolve are carefully evaluated. These reports make sure these issues are at the centre of the debate on CBDCs.’

Read the reports on the [BIS website](https://www.bis.org/press/p210930.htm).

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