The publishing of the first official white paper on a digital yuan (e-CNY) and the European Central Bank (ECB) raising the inflation target. Furthermore, Twitter and Square CEO Jack Dorsey announced the development of an open developer platform and more.
The first official white paper on e-CNY
In 2014, the People’s Bank of China (PBOC) initiated a task force to create a digital yuan. After seven years of working on the project, they recently published their first white paper. This digital yuan is referred to as e-CNY and is a central bank digital currency (CBDC). Titled “Progress of Research & Development of e-CNY in China”, the whitepaper details the current progress of e-CNY. Moreover, the document points out the similarity between the digital yuan and the money used by the Chinese today. According to the white paper, over 20 million digital yuan wallets have been created until now and 35.5 billion yuan ($5.4 billion) have been settled on the e-CNY network. The whitepaper also highlights the use of smart contracts and decision-based transactions, claiming that e-CNY obtains programmability from deploying smart contracts that don’t impair its monetary functions.
ECB dumping the almost twenty years old inflation rate
Last Thursday, the European Central Bank dumped its inflation target. As it used to be close to, yet below two percent for almost twenty years, it now announced that two percent is no longer a ceiling for eurozone money. Now the ECB set its inflation target at 2 percent in the medium term, ditching their mentioned previous formulation. In its announcement, the EZB concedes that even overshooting the supposed limit is tolerated more than ever. With the inflation rate in the U.S. of over five percent and the inflation rate in Germany of 2.3 percent in June, this could be referred to as an overdue adjustment of the central bank’s statutes. With high inflation rates, concerns on the consumers and enterprises side appear. More and more people begin to lose their trust in the system they are living in and start searching for more trustworthy places to keep their wealth. ECB President Christine Lagarde spoke out her opinion to a news conference, saying that she believes that the 2% target was clearer, simpler to communicate and a good balance.
“We know that 2% is not going to be constantly on target, there might be some moderate, temporary deviation in either direction of that 2%. And that is OK.”- Christine Lagarde
Jack Dorsey developing an open developer platform
Remember the last weekly wrap up about Jack Dorsey announcing a hardware wallet powered by payments services business Square? This week we have a new announcement to deliver. According to Jack Dorsey’s Twitter posts, the next project will be an open developer platform with the sole goal of making it easy to create non-custodial, permissionless, and decentralized financial services. In another Twitter post the same day, he mentioned that like their new Bitcoin hardware wallet, they were going to do this completely in the open. Open roadmap, open development, and open source.
And more exciting news from around the world:
- Binance will no longer offer trading of stock tokens. Michael Kott, Founder and CEO of the German financial services firm CM-Equity says that it was simply a business decision.
- Recently, there has been a lot of attention on the largest darknet drug market called Hydra. The Block wrote an article on why Hydra is so hard to kill.
It was a great week for blockchain technology. Follow us for more exciting news and be part of the blockchain revolution by joining our BLOCKCHANCE EUROPE 2021 conference in Hamburg in December 2021. You can get tickets here.