Wells Fargo, the fourth largest bank in the United States, announced on Tuesday that it will be piloting a new digital currency for cross-border and interbranch cash transfers, Reuters reports. The blockchain-powered cryptocurrency, Wells Fargo Digital Cash, will reportedly be pegged to the dollar, and allow the bank to save money and time during asset transfers by eliminating the need to go through third parties.
On Monday, The Bank for International Settlements hosted a meeting in Basel, Switzerland to discuss the issue of stablecoins like those proposed by Facebook and J.P. Morgan. After the meeting, Calibra CEO David Marcus took to Twitter to try to allay any concerns policymakers might have about Libra’s potential for threatening the monetary sovereignty of the modern nation-state.
On Friday, the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced new sanctions against three North Korean cyber groups believed to be responsible for cyber-attacks on financial institutions, cryptocurrency exchanges, and other critical infrastructure.
French Finance Minister Bruno Le Maire warned that his country wants to prevent Facebook Libra development in the European Union due to concerns about its risk to national governments’ ‘monetary sovereignty’ and potential abuse, the BBC reports. Le Maire made the comments during a Paris meeting of the Organization for Economic Co-operation and Development.
The People’s Bank of China (PBOC) has suggested that its plans to launch its own digital currency are primarily motivated by a desire to protect its foreign exchange sovereignty. However, Circle CEO Jeremy Allaire believes that the move could also help promote broader use of China’s currency around the world.