??Digital Money News This Week ??

???? The Reserve Bank of India's (RBI) Chief Shaktikanta Das has raised concerns that stablecoins pose a significant risk to India's monetary sovereignty, warning of potential threats like "dollarization" of the economy. Advocating for a Central Bank Digital Currency (CBDC) instead, Das highlighted the digital rupee’s benefits, including government-backed security and integration with India’s Unified Payments Interface (UPI). ?? The RBI continues to develop its CBDC program, focusing on financial inclusion and gradual, cautious deployment amidst India's stringent stance on private cryptocurrencies. ??

?? The Hong Kong Monetary Authority (HKMA) and Banco Central do Brasil (BCB) have partnered

to conduct cross-border tokenization experiments under Hong Kong’s Project Ensemble and Brazil’s Drex CBDC pilot. ?? This initiative will link their digital currency infrastructures to explore payment-versus-payment (PvP) and delivery-versus-payment (DvP) applications in sectors like trade finance and carbon credits. ?? The collaboration builds on a 2018 agreement between HKMA and BCB to foster financial innovation and aims to advance the global tokenization market through technology, with both institutions prioritizing integrated financial systems. ??

??Bank of England Governor Andrew Bailey has indicated that if tokenized deposits and other innovation by commercial banks don't progress, the Bank might proceed with a retail CBDC. ?? He emphasized the importance of central bank money in wholesale payments, preferring that tokenized deposits remain within commercial banks to ensure continued credit availability. However, if innovation lags, a rCBDC could be necessary.?? The Bank is actively exploring digital currency options, with trials and regulatory conversations on CBDC and tokenized deposits underway to assess the future of digital payments in the UK. ??????

??The Bank for International Settlements (BIS) has handed over the mBridge cross-border CBDC platform to central banks in China, Hong Kong, Saudi Arabia, Thailand, and the UAE. ?? This transfer follows concerns about potential overlap with a separate BRICS payment initiative. BIS General Manager Agustín Carstens clarified that mBridge is designed exclusively for global central bank needs, not BRICS-specific agendas. While still in early stages, mBridge aims to enhance cross-border payment efficiency. ?? The BIS emphasized that the handover allows it to focus on other innovation projects. ??

???? Tether Launches Dirham-Pegged Stablecoin on TON Blockchain: ??Tether is rolling out a Dirham-pegged stablecoin (AEDT) on the TON blockchain in partnership with UAE firms Phoenix Group and Green Acorn Investments. This new stablecoin, backed 1:1 by liquid UAE reserves, is designed to facilitate seamless cross-border payments and remittances within the UAE. According to Tether’s CEO Paolo Ardoino, the UAE’s status as a major economic hub makes it ideal for this stablecoin, which will also serve as a hedge against currency fluctuations. The initiative reflects the UAE’s growing embrace of digital assets, with the Virtual Asset Regulatory Authority (VARA) overseeing regulatory compliance to ensure secure and stable operations.

???? Paxos Unveils USDG Stablecoin in Singapore: ??Paxos, in collaboration with DBS Bank, has launched USDG, a new stablecoin pegged to the US dollar, fully compliant with Singapore’s regulatory framework. This launch aligns with Singapore’s push for a regulated digital finance ecosystem and enables efficient, trusted US dollar transactions across the financial sector. Paxos has highlighted that USDG’s compliance with the Monetary Authority of Singapore’s standards ensures a secure, reliable option for digital payments, investments, and trade settlement. The stablecoin is expected to bolster Singapore’s position as a global leader in fintech and regulated crypto solutions, reflecting the nation’s progressive stance on digital assets.

That’s a wrap on this edition of the CBDC Chronicles. Share your thoughts and drop them in the comments section below or send me a direct message.

?? Like this post: Your likes help me understand what content resonates with you.

?? Comment below: Your insights broaden the conversation and I appreciate your individual perspectives and encourage a healthy professional debate.

?? Reshare: If you find the content valuable, feel free to spread the knowledge amongst your connections.

See you in the next edition, until then, stay engaged and keep exploring! ????