CBDC

Due to weakened support from external partners, the Brazilian CBDC pilot project Drex is hindered in its privacy solutions

ChainCatcher news, according to Bitcoin.com, Brazil's central bank digital currency (CBDC) pilot project Drex is facing difficulties as the resources allocated to the project have decreased, slowing down its progress and hindering development.The two largest companies involved in designing the project's privacy solutions—Microsoft and Ernst & Young—have recently reduced their manpower dedicated to these efforts. This deadlock is related to the central bank's recent actions, as it ended the second phase of the Drex pilot without approving any projects submitted by participants. The privacy proposals that needed to ensure transaction confidentiality while allowing regulatory review did not meet the central bank's requirements in this regard, leaving the Drex project currently stalled.Ernst & Young, which is responsible for the Starlight privacy project, has lost three personnel involved in the development of this solution. Meanwhile, after investing significant resources last year, Microsoft has also reduced its involvement in the ZKP Nova privacy proposal. However, Microsoft's partner Hamsa will continue to test and support ZKP Nova.Central bank executive secretary Rogerio Lucca recently pointed out that the team behind Drex is still researching the project's future. He stated, "Based on the ongoing test results, the technical team is currently discussing possible future steps for the project." However, he did not disclose the test results.

Bank of England Governor: Bitcoin and stablecoins require different regulatory approaches, still exploring UK CBDC

ChainCatcher news, according to The Block, Bank of England Governor Andrew Bailey pointed out that Bitcoin and stablecoins require different regulatory measures, with higher regulatory thresholds for stablecoins. He also confirmed that central bank digital currency is still under research. On Tuesday, Bailey delivered a speech at the Booth School of Business at the University of Chicago in London, discussing changes in financial markets and their impact on stability, while reflecting on potential changes in the global cryptocurrency regulatory environment, especially after Trump's election.Bailey stated that the cryptocurrency regulatory reform plan of the Trump administration is still unclear, while the Biden administration, particularly the Securities and Exchange Commission (SEC), faces challenges in establishing a regulatory framework, opting instead to take action through the courts, which has created inconsistencies in the regulatory framework. In the UK, Bailey divides the cryptocurrency industry into two parts: cryptocurrencies not included in the banking system and stablecoins.He referred to the former as "pure investment risk" due to its high volatility, non-traditional currency status, and skepticism about its potential to become a currency. However, Bailey also mentioned that he understands people invest in cryptocurrencies in a portfolio manner after acknowledging the risks. Regarding stablecoins, Bailey believes they fulfill some functions of money, especially in payments, and have support, but stablecoins also exhibit characteristics of mutual funds, with insufficient transparency. Therefore, Bailey emphasized the need to establish reasonable regulatory standards, particularly in the payments sector, where stablecoins should be appropriately regulated like money.As for the potential central bank digital currency or "digital pound," Bailey stated that there are significant differences from stablecoins, and the Bank of England is collaborating with the UK government on research.
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