Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Digital Identity, Privacy, KYC, AML/ATF
Meta Files New Patent: Voice ID Data for User Authentication…Progress or Privacy Concern?
Patent | Aug 3, 2023
Image: Pixabay/Mohamed hassan
Meta, formerly known as Facebook, is taking a significant step towards enhancing user security and personalization. The company has recently filed a patent entitled "User Identification with Voiceprints on Online Social Networks."
This article will explore the details of this patent and what it means for users and advertisers along with a look at privacy and other concerns.
- Voice ID Authentication and Security
- Meta's new patent aims to record and analyze users' voices to determine a unique digital voiceprint. This voiceprint can be used for authentication, providing a higher level of security over traditional password-based login. Users will have the option to opt-in or opt-out of this feature, ensuring privacy and control.
See: Meta Agrees to $725 Million Class Action Settlement in Cambridge Analytical Scandal
- Personalized Content Experience:
- The patent also describes a process where the social-networking system may detect multiple people speaking and identify them based on their voiceprints. This identification can lead to customized content, including advertisements, news feeds, and suggestions, personalized to match the interests of the identified users.
- Integration with AR and Wearables
- Meta's current Ray Ban Stories glasses already respond to voice commands. The new patent likely relates to the expanded use of voice for the next generation of wearables, including AR glasses.
- It could be more about shared interests in augmented reality, based on friends' activities and locations.
Concerns Over Meta Listening to User Conversations
- "Always Listening" Myth? For years, there have been rumours that Facebook (now Meta) listens to private conversations to serve targeted ads. While Meta has consistently denied this claim, the new patent has reignited these concerns.
See: Unveiling the Massive Taxpayer Privacy Breach: Senators Demand DOJ Probe
- What if the system picks up random voices in the background or misidentification? Could this lead to unrelated ads or content being displayed? The effectiveness and accuracy of this technology will be crucial to its success. For example, if you use voice ID at a concert, and the mic picks up a passerby, you might end up receiving unrelated ads. The accuracy and effectiveness of this technology will be vital to prevent such mishaps.
- Even though the patent specifies that users can opt-in or opt-out, the potential for misuse or accidental identification cannot be ignored.
Progress or Privacy Concern?
Meta's new patent for gathering Voice ID data is an innovative approach to user authentication and content personalization. It promises enhanced security and a more tailored user experience. However, the potential challenges and privacy concerns cannot be overlooked.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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McKinsey: Tech Trends 2023 That Every Fintech, Bank, or Financial Service Provider Must Consider
Tech Trends | Jul 30, 2023
Image: Unsplash/Adi Goldstein
Here are the key takeaways that every fintech, bank, and financial service provider needs to know and consider its impact on their business in the next three years.
The first half of 2023 has seen a resurgence of enthusiasm about technology’s potential to catalyze progress in business and society. To help executives track the latest developments, the McKinsey Technology Council has identified and interpreted the most significant technology trends unfolding today.
1. Generative AI: The Next Frontier: Generative AI, a new entrant in the tech trends, represents the next frontier of AI. It has high potential and applicability across most industries, including finance. Generative AI is poised to add as much as $4.4 trillion in economic value from a combination of specific use cases and more diffuse uses—such as assisting with email drafts—that increase productivity. However, firms should not underestimate the economic significance and the growth potential that underlying AI technologies and industrializing machine learning can bring to various industries.
See: Quantum computing use cases are getting real—what you need to know
2. Trust Architectures and Digital Identity: Trust architectures and digital identity grew the most out of last year’s 14 trends, increasing by nearly 50 percent as security, privacy, and resilience become increasingly critical across industries. This trend is particularly important for fintech and banks, which handle sensitive customer data and need to ensure its protection.
3. Cloud and Edge Computing: Despite a decline in investment, cloud and edge computing continue to be critical technologies for the finance industry. These technologies have applications in most industries, and mainstream adoption is expected to continue to grow. More than 400 edge use cases across various industries have been identified, and edge computing is projected to win double-digit growth globally over the next five years.
4. Quantum Computing: Quantum computing continues to evolve and show significant potential for value creation. The four industries likely to see the earliest economic impact from quantum computing—automotive, chemicals, financial services, and life sciences—stand to potentially gain up to $1.3 trillion in value by 2035. For the finance industry, quantum computing could revolutionize areas like risk modeling and fraud detection.
5. Tech Talent Dynamics: The demand for tech talent far outstrips supply, with many of the skills in greatest demand having less than half as many qualified practitioners per posting as the global average. This talent crunch is particularly pronounced for trends such as cloud computing and industrializing machine learning, which are required across most industries. For fintech, banks, and financial service providers, attracting and retaining tech talent will be a key challenge in the coming years.
See: Navigating the End of Jobs: 2023 Human Capital Trends (From a Financial Services Perspective)
While these trends present significant opportunities, they also pose challenges. Organizations should adopt a balanced approach, focusing on a portfolio-oriented investment across the tech trends most important to their business. By doing so, they can capitalize on both established and emerging technologies to propel innovation and achieve sustainable growth.
Coupled with the following considerations that must be managed, Fintechs, Banks, and Financial Service Providers have their work cut out for them
Regulatory Compliance: The financial sector is one of the most heavily regulated industries. Fintechs, banks, and financial service providers must ensure they are compliant with all relevant regulations, including those related to data privacy, anti-money laundering (AML), and Know Your Customer (KYC) protocols. As regulations evolve, particularly in response to new technologies and cybersecurity threats, staying compliant will require ongoing attention and resources.
Cybersecurity: With the increasing digitization of financial services, cybersecurity threats are a significant concern. Financial institutions must invest in advanced security measures to protect sensitive customer data and maintain trust. This includes not only technological solutions but also employee training and the development of a strong security culture.
Customer Experience: In an increasingly competitive market, providing a superior customer experience is crucial for retaining customers and attracting new ones. This includes seamless digital experiences, personalized services, and excellent customer support. Financial institutions need to leverage data and technology to understand their customers better and meet their evolving expectations.
See: Blakes: Cybersecurity Trends in Canada: A 2023 Perspective
Innovation and Digital Transformation: The financial sector is undergoing rapid digital transformation, driven by emerging technologies like AI, blockchain, and cloud computing. To stay competitive, financial institutions must embrace innovation, which may involve partnering with fintech startups, establishing digital innovation labs, or investing in R&D.
Sustainability and Social Responsibility: There is growing pressure on businesses to demonstrate their commitment to sustainability and social responsibility. For financial institutions, this could involve offering green finance products, investing in sustainable businesses, and ensuring their operations are environmentally friendly. Additionally, they need to consider their role in the broader community and how they can contribute positively to society.
Call to action
The call to action is clear: Embrace the technological revolution, invest in talent, prioritize customer experience, and uphold the highest standards of security and regulatory compliance. Moreover, financial institutions must recognize their role in society and strive to contribute positively through sustainable and socially responsible practices.
Sean Gerety, IT Consultant:
"The technology you use impresses no one. The experience you create with it is everything."
The future belongs to those who are prepared to adapt, innovate, and lead. Now is the time for fintechs, banks, and financial service providers to step up, seize the opportunities presented by these trends, and shape the future of the financial industry.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Verify Your Humanity: Worldcoin’s Iris Scans Unlock the Promise of Free Cryptocurrency
News | Jul 27, 2023
Image: Worldcoin
Worldcoin, a project by OpenAI CEO Sam Altman, is scanning users' irises worldwide👁️, offering a digital ID and free cryptocurrency, despite privacy concerns and regulatory scrutiny.
Founded by Sam Altman, the CEO of ChatGPT developer OpenAI, Worldcoin launched on Monday, with iris scans taking place in countries like Britain, Japan, and India. The project has already issued IDs for over two million people in 120 countries, mostly during a trial period over the last two years.
Worldcoin claims that its system could pave the way for an "AI-funded" universal basic income. The concept of a universal basic income sees all citizens paid a set salary regardless of their means. However, it's not clear how Worldcoin plans to achieve this. 🌐💰
Launch and Rollout
- At a crypto conference in Tokyo, attendees queued in front of a gleaming silver globe, the device used for iris scanning. After the scan, they waited to claim the 25 free Worldcoin tokens the company offers to verified users. The excitement was palpable, with placards stating: "Orbs are here."
- Despite concerns over data collection, users expressed their curiosity about the project. Saeki Sasaki, 33, said, "There's a risk with having the data of your own eyes collected by a company, but I like to follow the most up-to-date crypto projects."
- Worldcoin posted a picture online of people queuing at a site in Japan and said it plans to roll out 1,500 Orbs in locations across the globe.
- In London, Worldcoin representatives guided people on how to download the app and get scanned. Participants received free t-shirts and stickers saying "verified human" afterwards. The promise of financial gains from the crypto coins was enough to make them hand over personal data.
- The BBC's Cyber Correspondent Joe Tidy tested out a Worldcoin Orb and described the process. Initially, the Orb used to talk to users, but customer feedback described it as "creepy," so the voice was removed. This shows the company's responsiveness to user feedback.
- Worldcoin tokens were trading around $2.30 on the world's largest exchange, Binance, on Tuesday. Ali, a 22-year-old chemical engineering student who has invested some of his student loan in crypto, calculated that the 25 free tokens could be sold for $70 to $80 at current prices. "I told my brother about it this morning. I told him 'it's free money, you want to come with me to get it?'" 💵
Data Collection Despite Concerns
- Despite the excitement, the project has raised concerns among privacy campaigners and data regulators. Worldcoin's data collection is a "potential privacy nightmare," according to the Electronic Privacy Information Center, a U.S. privacy campaigner.
- However, Worldcoin's website states that the project is "completely private" and that either biometric data is deleted or users can opt to have it stored in encrypted form. 🔒
- There's particular concern over those getting sign-ups in poorer nations. Privacy experts also worry that sensitive data gathered from scanning a person's iris might get into the wrong hands
- Industry reactions:
- Vitalik Buterin, the co-founder of cryptocurrency network Ethereum, expressed excitement about the project but also issued a warning about its potential pitfalls.
- Twitter founder and crypto enthusiast Jack Dorsey tweeted an apparent criticism of the project, describing its mission as "cute", and adding the dystopian warning: "Visit the Orb or the Orb will visit you...".
As we step into the future
As we step into the future, it's clear that the intersection of finance and technology, including cryptocurrencies, is becoming increasingly significant. The Worldcoin project is just one example of how these two worlds are merging, offering new opportunities and challenges. As we continue to navigate this new landscape, it's crucial to balance the potential benefits with the need for privacy and security.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Unveiling the Massive Taxpayer Privacy Breach: Senators Demand DOJ Probe
News | Jul 20, 2023
Image: Freepik
In a shocking revelation, a group of Democratic senators, including Elizabeth Warren (Mass.) and Finance Committee Chair Ron Wyden (D-Ore.), have called for a Justice Department investigation into several tax preparation companies H&R Block, TaxSlayer, and TaxAct
The senators' demand follows their investigation that concluded these companies shared extensive personal and financial information of taxpayers with Meta, the parent company of Facebook, and Google.
The senators have accused H&R Block, TaxSlayer, and TaxAct of embedding "pixels" in their websites, a code that allowed the sharing of sensitive tax data with Meta and Google. This data included information such as federal taxes owed, filing status, and names of dependents.
Meta reportedly used the data obtained from tax preparation services for targeted ads and to train its AI algorithm.
The accused companies have since claimed to have stopped the tracking software.
This controversy emerges amidst Democrats' ongoing battle with the tax preparation industry over an IRS plan. The plan involves setting up a pilot program next year that would allow some people to bypass these companies and file their returns online for free directly with the IRS.
In response to the allegations, a spokeswoman from H&R Block stated, "H&R Block takes protecting our clients’ privacy very seriously, and we have taken steps to prevent the sharing of information via pixels."
See: Financial Privacy: SEC Launches Enormous Database Compiling All Stock Trades
In addition to the Justice Department, the senators have also urged the IRS, the agency’s inspector general, and the Federal Trade Commission to investigate the matter and prosecute any company or individuals who violated the law. The report pointed out that under the law, "a tax return preparer may not disclose or use a taxpayer’s tax return information prior to obtaining a written consent from the taxpayer," — a rule that was not followed when the information was turned over to Meta and Google.
This incident underscores the urgent need for stringent data privacy laws and the importance of holding companies accountable for their actions. As the investigation unfolds, it will be crucial to monitor the steps taken by these companies to ensure the protection of taxpayer information and privacy.
The Senators:
"[This is] shocking breach of taxpayer privacy by tax prep companies and Big Tech firms that appeared to violate taxpayers’ rights and have violated taxpayer privacy law."
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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AI and the Metaverse: The Imperative for Rules and Regulations
Brookings Advocacy | Jul 19, 2023
Image: Freepik/tohamina, VR technology generative AI
This AI-driven world is not just a game but a space where personally identifiable avatars interact under the control of advanced AI systems. As we immerse ourselves more into this new online world, it is crucial that we collectively decide where we want to be going.
The metaverse is a creature of AI, with much of what happens in it determined by AI algorithms. While the term may have disappeared from public consciousness, it should not disappear from public concern. The company formerly known as Facebook, now Meta Platforms, continues its multimillion-dollar advertising campaign to shape a good image for the metaverse.
See: Epic’s CEO Tim Sweeney Illuminates How the Metaverse Will Actually Function
The metaverse brings the promise of new tools for education, entertainment, medicine, and commerce. However, it also imports the problems associated with the current digital platforms, while creating a host of new issues. Since we have yet to successfully deal with the problems created by the current digital platforms, it is even more pressing to rectify the new genre of potential abuses that are arising.
The online challenges with which we wrestle today, such as privacy, competition, and misinformation, will be supercharged by the intrusive, immersive, individually identifiable nature of the metaverse. On top of this, the metaverse expands the problems inherent in unsupervised online communities such as harassment, bias, manipulation, and threats to personal safety and the safety of children.
Policy Makers Need to Step Up
The experience with social media is a warning about what happens when public interest expectations are not part of digital innovation, when “build it and be damned” is the rule. Policymakers need to come to grips with—and preferably get ahead of—the new technology with focus equal to those who are creating the new challenges. Today’s online activity began as an observational experience that gradually expanded through social media and online games to become more participatory. The metaverse accelerates that expansion utilizing virtual reality (VR), augmented reality (AR), and artificial intelligence to create an immersive 3-D first person experience that puts the user “inside” a new pseudo-world.
We are moving from social media to social virtual reality without a plan for mitigating its ills.
Thus far in the internet age, the dominant companies have privatized governance and made their own behavioral rules free of much effective governmental oversight. Too often, public policymakers’ lack of technological understanding has been exploited to promote a fear that regulation will break the magic of the tech innovators. Now is the moment to decide about the kind of digital world in which we want to live.
See: What CEOs Should Know About the Metaverse
The metaverse will—like the digital platforms that preceded it—deliver wonderous new capabilities. The development of such capabilities must be encouraged and expedited but not at the cost of trampling the rights of individuals and the public interest. The coming metaverse gives us the opportunity to both rectify the abuses of the early internet era while getting in front of the changes to come.
Where to from here?
In conclusion, the metaverse is a world of expanded surveillance by those offering the service. That this new surveillance is being developed by the same companies that have already trampled personal privacy should be of concern. Now, while the metaverse is relatively rudimentary, is the time to get in front of the new issues it raises and, in the process, tackle the platform problems that have long bedeviled us. We are being told, however, to chill, that the time necessary for the development of the metaverse will give us the opportunity to resolve the problems it creates. History, however, teaches us the opposite is true. The establishment of digital norms is a matter of getting there first.
Once new digital patterns are established, they are difficult to correct.
Read the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Digital Identity in the Age of Web3: Empowering Individuals, Transforming Organizations
FFCON23 Discussion | Jul 19, 2023
Image: Unsplash/Vadim Bogulov
In the rapidly evolving digital landscape, the concepts of Web 3, blockchain technology, and digital identity are becoming increasingly significant.
These emerging technologies hold the potential to revolutionize the way we handle identity verification, offering enhanced privacy, security, and user control over personal data. However, the journey towards this future is not without its challenges. From balancing user experience with robust security measures to navigating complex regulatory frameworks, there's a lot to consider.
In this article, we delve into a recent panel at FFCON23 discussion titled "The Future of Identity Verification in the Age of Web 3" where industry experts explore the opportunities and hurdles in this space. We'll unpack the potential of decentralized digital identities, the role of blockchain in identity verification, and the implications of these technologies for both individuals and organizations.
Unlocking the Potential of Decentralized Digital Identities
One of the key highlights of the panel discussion was the promise of decentralized digital identities. With Web3 and blockchain technology, individuals can have greater control over their personal data, ensuring privacy and security while interacting in the digital realm.
See: Digital Identity Should Be A Big Business For Banks
The concept of portable and reusable identities gained traction, envisioning a future where individuals no longer need to carry physical documents like passports or driver's licenses. Instead, a secure digital identity stored on the blockchain could serve as a universal proof of identity, revolutionizing traditional verification processes.
Balancing User Experience and Security
While the potential of decentralized digital identities is enticing, the panelists also emphasized the need to strike a balance between user experience and security. Designing user-friendly interfaces and seamless authentication processes is essential for widespread adoption. Simultaneously, robust security measures must be in place to prevent identity theft, fraud, and unauthorized access. The challenge lies in finding innovative solutions that ensure a frictionless user experience without compromising security.
Navigating Regulatory Frameworks
The implementation of decentralized digital identities necessitates navigating complex regulatory frameworks. Panelists discussed the importance of building trust between individuals, organizations, and governments while establishing the right frameworks for digital identity verification. Regulatory compliance plays a crucial role in protecting personal data rights, mitigating risks, and fostering a safe and transparent digital environment.
Exploring the Role of Blockchain
Blockchain technology emerged as a catalyst for enabling decentralized digital identities. It provides a secure and immutable ledger that can verify and validate identity information without relying on centralized authorities. Blockchain's decentralized nature ensures transparency and reduces the risks associated with storing sensitive personal data in a single point of failure. However, the adoption of blockchain technology in identity verification requires collaboration among stakeholders, including governments, technology providers, and industry players.
Implications and Future Outlook
The panel discussion underscored the potential of Web3, blockchain, and decentralized digital identities to reshape the future of identity verification. The seamless integration of these technologies has the potential to enhance privacy, security, and user control over personal data. It opens up new avenues for innovation, empowering individuals to monetize their data while maintaining data ownership and control. However, challenges remain, including the need for widespread adoption, regulatory harmonization, and industry collaboration.
See: Digital Identity Protection is Critical for Metaverse Innovation
As we venture into the age of Web3 and embrace the possibilities of decentralized digital identities, the future of digital identity verification looks promising yet complex. While Web3 and blockchain offer exciting opportunities, their successful implementation requires addressing challenges related to user experience, security, and regulatory compliance. By harnessing the potential of these technologies and fostering collaboration among stakeholders, we can build a future where digital identity verification is seamless, secure, and empowers individuals to control their digital presence.
In this Video
This video is for anyone interested in digital identity, blockchain technology, and the future of privacy and security. It's particularly relevant for professionals in the tech industry, policymakers, and anyone interested in the intersection of technology and privacy. 🎯
- Moderator: Anna Niemira: Head of Partnerships Strategy and Innovation at Lambert & Co.
- Speaker: Erik Zvaigzne: VP Product Innovation at Convergence.Tech
- Speaker: John Gruetzner: COO at Syngrafii
How can Web 3 and blockchain technology revolutionize identity verification? The video discusses the potential of Web 3 and blockchain technology in creating a new layer of digital identity that enhances privacy and security. It explores how these technologies can be used to create portable and reusable identities, reducing the risk of identity theft and fraud.
Read: Blockchain Use Cases in Digital Identity
What are the challenges and opportunities in implementing decentralized digital identities? The panelists discuss the challenges in implementing decentralized digital identities, including technological, regulatory, and user experience considerations. They also discuss the opportunities that these technologies present, such as the potential for individuals to monetize their personal data.
How can governments and organizations prepare for the changes brought about by these technologies? The video explores how governments and organizations can prepare for the adoption of these technologies. It discusses the importance of building trust frameworks, governing who can participate in the system, and determining what constitutes an acceptable proof token. It also touches on the need for regulations and policies that protect personal data rights.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Central Bank Digital Currencies on the Rise: 15 Retail CBDCs by 2030
Global CBDC Innovation | July 10, 2023
As the digital revolution continues to reshape the global economy, central banks worldwide are increasingly exploring the potential of Central Bank Digital Currencies (CBDCs) to enhance payment safety, efficiency, and monetary policy.
Over 130 Central Banks are Working on CBDCs
- In the rapidly evolving digital economy, central banks globally are turning their attention to Central Bank Digital Currencies (CBDCs).
- A recent survey by the Bank for International Settlements (BIS) reveals a significant uptick in CBDC-related activities, with 93% of the 86 surveyed central banks engaged in some form of CBDC work.
- The development of retail CBDCs, aimed at the general public, is outpacing that of wholesale CBDCs, intended for financial institutions despite significant privacy and security concerns.
- By 2030, we could witness up to 15 retail and nine wholesale CBDCs in circulation.
See: OpEd: Draft U.S. Bill on Stablecoins Highlight Differences with CBDCs
Motivations and Design
- The primary drivers behind CBDC issuance are enhancing payment safety and domestic payment efficiency. Central banks, particularly those from emerging markets, are actively exploring CBDCs to address specific needs in their regions.
- However, the potential implications of CBDCs on monetary policy and financial stability remain a focal point of research.
- While many central banks are still undecided about issuing CBDCs, they are investing heavily in understanding these potential impacts.
- When it comes to CBDC design, central banks are exploring various options, including account-based or token-based CBDCs, and the possibility of interest-bearing CBDCs.
The survey also highlights an increasing trend of collaboration among central banks and international organizations, sharing experiences and knowledge about CBDCs while the IMF is currently working on a global CBDC platform. This cooperation is key to navigating the complex landscape of digital currencies and ensuring the stability and efficiency of future financial systems.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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