Goldilocks’ Global Economic News 6-5-2024
NEW YORK, N.Y. — “The Commodity Futures Trading Commission’s Global Markets Advisory Committee (GMAC), sponsored by CFTC Commissioner Caroline D. Pham, advanced two recommendations to examine the impacts of proposed U.S. bank capital requirements and to improve collateral and liquidity management for non-centrally cleared derivatives.” | CFTC
Recommendations:
1. Global Market Structure Subcommittee Recommendation – “Report on the Impact of the US Bank Capital Proposals on End-Users that Rely on Cleared Derivatives Markets”
This first recommendation deals with Capital Requirements and corresponding collateral that is put up to ensure that both sides of a trade moves through the system.
In many cases, this will represent gold for large transactions inside of large foreign currency exchanges.
The London Clearing House and the Chicago Mercantile Exchange are two examples of Clearing Houses that will process our transactions.
2. Technical Issues Subcommittee Recommendation – “Variation Margin Processes in Non-Centrally Cleared Markets”
Non-centrally cleared markets happen in markets where transactions are moved through the system without the involvement of a central counterparty or custodian.
Examples of non-centrally cleared markets include:
* Non-centrally cleared bilateral repo (NCCBR) market
This concept deals with credit given on both sides of a trade to execute the process allowing a trade to go forward.
* Non-centrally cleared derivatives (NCCDs)
And, this concept deals with clearing derivative product details such as interest rates, foreign exchange trades, credit, commodity, and Equity trades.
On the new Digital Asset Based Trading System, Smart Derivative Contract Clearing can now be done through digital mechanisms capable of processing these informational data points at the touch of a button.
Here, we have Gold and Technology merging into synchronized partnerships designed to clear a market transaction or a banking portfolio with a few strokes of a keyboard. CFTC
© Goldilocks
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Instant Cross-Border Payments Announcement:
“The BIS unveiled Project Rialto (https://www.bis.org/about/bisih/topics/cbdc/rialto.htm) a new foreign exchange (FX) module looking to improve FX settlement for instant cross border payments. It will use wholesale central bank digital currencies (wholesale CBDC) as the settlement asset. The FX module could be used as an add on for solutions that interlink instant payment solutions, such as Project Nexus, or as part of a digital asset settlement solution.”
Wholesale CBDC will be utilized in foreign currency exchanges. I know many of you will have a question about this procedure, so I looked into it a little bit further to give you the following sentence. Once your funds reach your personal banking account, it does not transition into Retail CBDC.
A retail CBDC is for general public use, and wholesale CBDC is for the banking system to utilize. It remains to be seen at what level we will see a retail CBDC if at all. If retail CBDC is adopted, the public has made it known that the government is going to have to continue working on the privacy issue. Time will tell on this one. BIS Ledger Insights World Economic Forum
© Goldilocks
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Deutsche Bank has joined the Monetary Authority of Singapore’s (MAS) Project Guardian (as part of the asset and wealth management workstream). The collaborative initiative is dedicated to testing the feasibility of asset tokenization applications in regulated financial markets. | The Tokenizer
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Tokenized Exotic RWAs Are Piquing Investor Interest | Forbes
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The U.S. Faster Payments Council (FPC) has recognized Ripple among companies like Visa and Mastercard set to compete for dominance in currency conversion for digital assets. | The Crypto To Basic
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France’s prudential regulator advances work on certification of smart contracts | Ledger Insights
As part of a speech (https://www.banque-france.fr/en/governors-interventions/future-money-regulatory-and-policy-issues-related-introduction-cbdcs) earlier this week, the First Deputy Governor of the Banque de France (https://www.banque-france.fr/), Denis Beau, revealed that the ACPR is working with the industry to certify smart contracts. The Autorité de Contrôle Prudentiel et de Résolution, ACPR, is the prudential regulatory arm of the central bank.
“Work is continuing in 2024 with stakeholders on one of the ACPR’s key proposals, namely the mandatory certification of smart contracts prior to their use,” he said. Mr Beau noted that early French crypto-asset regulations had heavily influenced the MiCA regulations.
Last April the ACPR shared some proposals on the possibility of regulating DeFi. They fell into three buckets:
* Security standards for private DLTs and public blockchains
* Certifying smart contracts
* Regulating DeFi entry points such as websites.
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Can Ripple take over SWIFT? While Ripple might have the potential to take over SWIFT, it is also possible that SWIFT might leverage its considerable resources and reputation and pivot its services to include blockchain technology in some format. | Daily Coin
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Bretton Woods 3 – New World Monetary Order | Youtube
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5 yr projections | US Debt Clock
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“Tokenization can leverage the efficiency and transparency of blockchains to help modernize U.S. markets.” | Twitter
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UAE Central Bank Approves Stablecoin Licensing – CryptoMode
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“Iraq to Start Mining Bitcoin with UAE on Nation-State Level” | Youtube
