Digital currencies

30 Mar 2022

US defines its digital asset priorities

In times of crisis, cryptocurrencies found new roles in financial markets. We witness different forms in which cryptocurrencies are used to transfer value when the regular financial flows fail (or are just too laggy).  It seems crypto is here to stay and governments are taking stock and developing plans. This March, US President Joe Biden was determined to find a regulatory solution for crypto by kickstarting the legislative machine of the US with the Executive Order on Ensuring Responsible Development of Digital Assets (“EO”). The EO recognizes the explosive growth of digital assets as an opportunity to reinforce American leadership […]

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07 Mar 2022

One step closer to the digital dollar

The US Federal Reserve published a document titled Money and Payments: The U.S. Dollar in the Age of Digital Transformation (“Paper”) in January.  The Paper points out the pros and cons of creating the digital dollar in the form of a CBDC (Central Bank Digital Currency), to determine whether it could improve the US payment system. As we explained in earlier texts on this subject, CBDCs are virtual records of existing fiat currencies.  They represent the complete equivalents of currencies such as the euro, dollar, dinar, etc. The Paper points out that the digital dollar would be a liability of […]

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17 Jan 2022

Stablecoins run the world?

Technological development influenced capital markets far more than expected in the last decade.  Decentralized currencies, central bank digital currencies and digital tokens are all huge news in the world of finance. And so are stablecoins. What are stablecoins and how do they “work”? Stablecoins are a unique kind of decentralized digital assets, developed to “bring the best of both worlds”.  They have all the characteristics of decentralized currencies but also solve the problems of volatility and uncertainty.  That makes them similar to centralized currencies.  Stablecoins are unique because they are backed by real reserves.  They are either backed by fiat […]

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Crypto and money laundering? FATF updates its rules

Does blockchain technology carry risks of money laundering and terrorist financing?  The Financial Action Task Force (“FATF”) responds affirmatively.  In October 2021, FATF published an Updated Guidance for a Risk-Based Approach (“Guidance”), as a result of crypto market monitoring.  The Guidance is based on the assessment of the risk of money laundering and terrorist financing regarding the regulation and supervision of virtual assets (“VA“) and Virtual Assets Service Providers (“VASP“). The amendments to the Guidance are the result of the FATF’s ongoing work and oversight of the VA and VASP sectors and their development, to prevent money laundering and terrorist […]

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20 Aug 2021

(Un)limited possibilities for digital assets placement

We live in the era of digitalization.  Changes in technology inevitably affect our lives.  One such innovation in Serbia are digital assets, which can be virtual / cryptocurrencies or digital tokens.  Although the local legislation has only recently recognized this institute, an increasing number of companies that operate in Serbia now work in the sphere of cryptocurrencies.  The Digital Assets Act (the “Act”) provides options and opens many doors for the use of digital assets, primarily cryptocurrencies. Therefore, the question whether cryptocurrencies are our future or our present arises.  Opportunities for the use of cryptocurrencies are yet to be fully […]

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Cryptocurrencies, digital currencies – changes in financial systems, or a whole new world?

Cryptocurrencies, digital currencies, electronic money… are the talk of the world.  A common question these days is what cryptocurrencies are and how they work.  This question now has a more recent addition – what are digital currencies?  Is digital currency a synonym for cryptocurrency?  If not, what is the difference?  If you are a fintech enthusiast, you may think that this is a great time to be alive.  But if you are not, it is perfectly ok to be confused, even a bit scared by the changes happening this fast.  The only thing we can do is to keep up […]

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