Autor Cointelegraph By David Attlee

Japan’s International Payments System will test plastic cards for CBDC

Japan Credit Bureau (JCB), a Japanese analog to international payments systems like Visa or Mastercard, announced the start of its central bank digital currency (CBDC) infrastructure testing. The project will assumably prepare the payments platform for a national CBDC, which is currently being tested by the Bank of Japan (BoJ). The infrastructure project, announced by the company in local media, will come under the title JCBDC and aims at adjusting the JCB’s existing credit card infrastructure for CBDC payments. The France-based provider of facial recognition technology IDEMIA and Malaysian Softspace will collaborate with JCB in the platform’s development. The platform will consist of three major directions — a touch payment solution, an issuance and provision of plastic cards for CBDC and a simulation of the working CBDC environment. JCB also plans to adjust the mobile payment tools and QR codes, but in the later stages of testing. JCB plans to develop a payment solution by the end of 2022 and start the demonstration experiments at actual stores by the end of March 2023. The BOJ shared a three-phase trial outline for its CBDC back in Oct. 2020. The second phase of the trials, which would test the technical aspects of the issuance of the digital yen, should start this year. According to the BoJ governor, the digital yen could launch by 2026, and the decision won’t be made by the central bank alone.Related: Japan is losing its place as the world’s gaming capital because of crypto hostilityThere is still no certainty about the project launch or the possible scope of its implementation. In January, the former head of the BOJ’s financial settlement department advised against using the digital yen as a part of the country’s monetary policy.JCB is not a newcomer to digital innovations — it started a pilot of a digital identity interoperability system based on blockchain technology in collaboration with Fujitsu Laboratories in 2020.

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Uzbeki police get 'how to seize crypto' training from UN security org

The Organization for Security and Co-operation in Europe (OSCE) organized a five-day training course on cryptocurrencies and Dark Web investigation for Uzbekistan’s police and prosecution forces. The course is a part of OSCE’s consistent efforts to educate Central Asian law enforcers on the emerging technologies that criminals might abuse in a strategically important region for the global drug trade. As the official press release from Oct. 21 goes, representatives from the General Prosecutor’s Office, the Ministry of Internal Affairs and the State Security Service attended the training from Oct. 17 to 21 to learn about the main concepts and key trends in the areas of internetworking, anonymity and encryption, cryptocurrencies, obfuscation techniques, Dark Web and the Tor networks. The enforcers became acquainted with methods for seizing cryptocurrency and blockchain analysis developed by the European Cybercrime Training and Education Group (ECTEG). The OSCE has even donated a new computer classroom to the General Prosecutor’s Academy. The course became the first national training in Uzbekistan delivered within the second phase of the “Capacity Building on Combating Cybercrime in Central Asia” extra-budgetary project, which is funded by the United States, Germany and the Republic of Korea. National training activities will continue across the region throughout 2022 and 2023.In 2020, OSCE has also conducted a training program on crypto enforcement for Central Asian countries. Back then, the scope of participating enforcers was much larger, with representatives from Azerbaijan, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Turkmenistan, Uzbekistan and Mongolia attending it in the city of Almaty.Related: Armenia aims to position itself as a Bitcoin mining hubIn August, the government of Uzbekistan, which had previously made significant steps toward a moderate approach to crypto, restricted access to a number of large international crypto exchanges, including Binance, FTX and Huobi, due to accusations of unlicensed activity. The OSCE is the world’s largest regional security-oriented intergovernmental organization with observer status at the United Nations. Based in Vienna, it focuses on issues such as arms control, promotion of human rights, freedom of the press, and free and fair elections.

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Mobile bank N26 launches cryptocurrency trading with Bitpanda partnership

The $9 billion-valuated German fintech N26 launched crypto trading on its mobile app. Starting from Austria and rolling out to other countries in the upcoming months, N26 Crypto will let its customers buy and sell 200 cryptocurrencies, including Bitcoin (BTC) and Ether (ETH).The Berlin-based fintech announced on Oct. 20 that the launch in Austria addresses “strong local demand,” with 40% of N26 users either actively trading or have expressed interest in investing in cryptocurrencies. N26 plans to roll out its crypto trading service to other key markets in the next 6 months. N26 customers with a verified identity can access N26 Crypto from the “Trading” section within their N26 app’s new “Finances” tab. Thus they can buy crypto from their fiat bank account. The transaction fee is set at 1.5% for BTC and 2.5% for other currencies for the usual accounts with some extra discounts for N26 metallic card holders. Related: German crypto bank Nuri tells 500K users to withdraw funds ahead of shutdownAccording to N26 co-founder and co-CEO Valentin Stalf, the company sees its new product as an entry point for a new generation of investors, who are interested in digital assets despite the recent market upsets: “While cryptocurrencies have seen a decline in value over the last year, they remain a requested and interesting asset class for investors and a growing part of the financial system.”The platform is maintained in a partnership with Vienna-based Bitpanda GmbH, which manages the execution of trades and custody of coins. In November 2021, N26 announced its exit from the U.S. market and the intention to focus exclusively on the European market. However, the company faced some problems in Europe, too, with the German Federal Financial Supervisory Authority (BaFin) enforcing the new customer cap on the company in May 2021.

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Israel kicks off live tests for its tokenized digital bonds

The Israeli Ministry of Finance, together with the Tel Aviv Stock Exchange (TASE), digital assets custody provider Fireblock and the United States software solutions developer VMware, will conduct the testing of a blockchain-backed platform for digital bonds trading. These bonds will be issued by the Ministry of Finance. The news broke out in the local media on Oct. 19. Coming under the name “Eden,” the new project is intended to reduce costs and optimize the procedure of national bonds issuance. As the Accountant General, Yali Rothenberg told the public: “I believe that blockchain-based technologies are here to stay, and over time will permeate the core of the financial markets, thoroughly and deeply altering them. It is our duty to constantly examine new technologies and methodologies.” During the live test, the participating banks will receive a new series of tokenized government bonds on their e-wallets via the project platform, transferring the money held in digital currencies to the e-wallet of the Israeli government. There is no information about the specific digital currencies that are going to be used in the live test. ​​The pilot project is expected to be completed by the end of Q1 2023.Related: MakerDAO goes ahead with $500M investment in treasuries and bondsThe list of countries and international bodies that have digitalized their bonds is not long. The World Bank for Reconstruction and Development and the Commonwealth Bank of Australia became pioneers back in 2018, raising A$110 million for two-year blockchain bonds. In 2021, the European Investment Bank followed the path by issuing 100 million euros in digital bonds. While the most prominent national example is El Salvador, which ties its “Bitcoin bonds” to a larger crypto-centered strategy of development, Colombia and the Philippines have also dipped their toes in digitalizing the government bonds. In 2022, the U.K. voiced its intention to explore blockchain for government bonds as well.

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EU Commissioner urges lawmakers to hurry up with crypto regulations

While the European Union proceeds with smoothly passing its landmark crypto framework, the Markets in Crypto-Assets (MiCA), through the legislation phases, its financial services chief urges the American counterparts to keep in step to ensure the forthcoming regulations will be global, not local. On Oct. 18, the European Commission’s financial services commissioner Mairead McGuinness emphasized to the Financial Times that the regulatory efforts should take a global character. “We do need to see other players also legislating,” said McGuinness, adding, “We need to look at global regulation of crypto.” These remarks were made during McGuinness’ visit to Washington DC, where she met the Republican Representative Patrick McHenry and the Democratic Senator Kirsten Gillibrand, one of the co-sponsors of the U.S. “crypto bill.” The commissioner was encouraged by these meetings and believes that the U.S. lawmakers were moving in “the same direction.” Nevertheless, she shared her concerns about the possible delays of that movement:“There could be — in time, if it grows — financial stability problems. There also are investor issues around a lack of certainty.”The European Parliament Committee on Economic and Monetary Affairs (ECON) approved the MiCa on Oct. 10 following a vote from the European Council. Following legal and linguistic checks, Parliament approving the latest version of the text, and publication in the official EU journal, the crypto policies could go into effect starting in 2024.Related: EU commissioner McGuiness says privacy, AML may look different from US under MiCAMeanwhile, after several different bills on crypto in general and stablecoins, in particular, have been introduced to the public, the U.S. lawmakers’ discussion stalled. One of the reasons might be the upcoming midterm elections, which could re-draw the balance of powers in Congress and the Senate. The FT also highlights the disagreement between the Democratic and Republican parties, especially regarding stablecoins.

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