BIS Advances Cross-Border CBDC Settlement
The BIS today announced significant progress accelerating the ability of CBDCs to handle cross-border payments. Working with central banks in Australia, Singapore, Malaysia, and South Africa, the BIS described two prototype platforms for multi-currency international settlement that in their view prove that central banks can transact directly with each other using a shared platform.
ECB Head Criticizes Crypto, Calls for CBDC
Although we have not been able to confirm this by official remarks, press reports today indicate that ECB head Christine Lagarde has concluded that crypto-assets and -currency are significant factors in Russian-sanctions evasion.
CFPB Attaches UDAAP Label to Product-Review Practices
Building on FTC action, the CFPB today issued guidance stipulating that contractual-gag orders and certain other practices (e.g., employee or paid reviews) affecting the integrity of consumer reviews are illegal in credit-card, mortgage, or other consumer-finance marketing. The law on which this view is premised is a provision in the CFPB’s authorizing statute providing enforcement power for unfair, deceptive, or abusive acts or practices (UDAAP).
Treasury Lays out Digital-Asset Work Plan
In remarks today, Treasury Under-Secretary Liang laid out her agency’s plans to execute President Biden’s digital-asset order (see Client Report CRYPTO26). Treasury’s report on money and the payment system will address current weaknesses (e.g., high fees for low-balance accounts, slow and costly remittances), recognize the strength of FDIC insurance and other safeguards, build on FedNow, and establish a way for stablecoins to access the payment system.