Citizens could pull too much money out of banks at once by purchasing CBDCs, triggering a run on banks—affecting their ability to lend and sending a shock to interest rates. This is especially a problem for countries with unstable financial systems. CBDCs also carry operational risks, since they are vulnerable to cyber attacks and need to be made resilient against them. Finally, CBDCs require a complex regulatory framework including privacy, consumer protection, and anti-money laundering standards which need to be made more robust before adopting this technology. California Court of Appeal rejects suit against Curve founder Michael Egorov.
Recent financial fraud cases and cases of corruption in finance in both countries visibly demonstrate the need to have some sort of a government-controlled digital currency that would let them to interfere long before a financial shock strikes due to financial mishandling. It is on this basis and the basis of previous research on the issue that the underlying article tries to come up with an idea of a common digital currency for a group of emerging markets to collectively manage financial and monetary issues with digital money in hand 21. The research suggests that the BRICS common digital unit of payment may indeed bring trust and security, especially for foreign trade partners in the BRICS who would like to hedge their currency risks and foreign exchange risks when exporting or importing important and valuable goods and services. This may improve cooperation and bring the BRICS to a new level of integration through common money.
On January 15, the US Attorney’s Office for the Southern District of New York announced that a US federal judge in New York ordered offshore crypto exchange BitMEX to pay a $100 million fine. According to recently unsealed charging documents, HDR Global Trading Limited (doing business as BitMEX) violated the Bank Secrecy Act (BSA) by failing to implement anti-money laundering (AML) and know-your-customer (KYC) programs for more than five years, despite soliciting orders from US customers. According to the judge’s order, BitMEX had claimed that it had withdrawn from the US in 2015 to avoid US regulations, but went on to service US customers as its “largest source” of business. BitMEX thus became a destination for individuals seeking to launder money and evade sanctions. The order follows a prior consent order in a civil enforcement action brought by CFTC and FinCEN.
In the early 21st century, especially after the global financial crisis of , this problem again took hold and became of particular interest for monetary economists after the pandemics. Since its inception in 2008, right in the wake of the global financial crisis, Bitcoin was thought as a sort of a remedy for all money ills. Because its blockchain was made to eliminate inflation, financial fraud, money manipulation and keep the value of money stable. Trying to compare the possibility of digital currency use in the BRICS we could not but remember of the Fisher’s formula for its influential idea of money equilibrium. (For information on the first set of final regulations, see our earlier alert).
BRICS, an intergovernmental organization comprising Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates, announces the creation of an independent payment system based on digital currencies and blockchain. Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology. He said that BRICS member nations will talk about using digital currencies in investment developments, adding that BRICS members are not the only ones who will benefit from crypto adoption but “other developing and emerging economies” as well. On December 12, the Department of Justice (DOJ) announced the sentencing of Frank Richard Ahlgren III to two years in prison for filing tax returns that falsely underreported, or did not report the substantial capital gains he earned from selling $3.7 million in bitcoin. CyberKongz denies the allegations, stating that there was no “primary sale,” but instead a “contract migration” of the NFTs.
