Washington, Apr 19: Finance Minister Nirmala Sitharaman on Tuesday made a strong case for regulating cryprocurrencies at a global level to mitigate the risk of money laundering and terror funding. Participating at a high-level panel discussion organised by the IMF, the Finance Minister said that as long as the non-governmental activity of the crypto assets was through unhosted wallets, the regulation was going to be very difficult. However, she said, cross border payments between countries will become very effective through […]
Finance Minister said that as long as the non-governmental activity of the crypto assets was through unhosted wallets, the regulation was going to be very difficult.
What Do We Mean by Private Digital Money?
Introduction
This article is the third in a multi-part series that explains how the SEC has structured its anti-cryptocurrency campaign and over-reached its regulatory authority in shutting down cryptocurrencies or private digital money (“PDM”). Part I discussed some of the sleights of hand the SEC has used in its anti-cryptocurrency efforts and the sources for its claim of jurisdiction. Part II reviewed the SEC’s early history with PDM and steps taken in its suppression-by-regulation program. Part III revisits the term “private digital money” (“PDM”), explores the relationship between PDM and tokens, and, finally, compares and contrasts PDM and tokens with securities.
Updated December 21, 2020 at 1:29pm EST
As more countries issue or develop central bank digital currencies (CBDC), the prospect of a digital currency as part of mainstream finance is increasingly becoming a reality. How will the digital currencies affect the international reserve ecosystem?
A recent paper by the International Monetary Fund (IMF) seeks to provide the answer to that question. This year’s pandemic has already hastened the move toward a reconfiguration of the international reserve system.
“COVID-19 could alter the global economic landscape … trigger strategic shifts in reserve holdings … in particular, the emergence of digital currencies and advances in payment systems could speed up the transition to alternative and, perhaps, less stable configurations of reserve currencies.” the paper’s authors write.