Central banks can use digital currency as a substitute for cash in circulation initially, and it could also help to bolster liquidity, but is South Africa ready for such a commitment?
Earlier in 2020, the Chinese Central Bank rolled out pilot testing for its homegrown digital currency, involving transferring salaries to government workers and tying up with designated merchants to facilitate transactions using the yuan. The end goal is to have full-fledged functionality by the time the 2022 Olympics take place.
In April the state media outlet China Daily observed that, “A sovereign digital currency provides a functional alternative to the dollar settlement system and blunts the impact of any sanctions or threats of exclusion both at a country and company
The former vice president of China’s central bank pushed for central bank digital currencies positioning it as a substitute for cash in circulation.
Wang Yongli, former vice president of Bank of China and a director of the Haixia Blockchain Research Institute, said digital currencies can certainly be a substitute for cash but it shouldn’t be confined to just that, according to the Global Times.
Wang said digital currencies can reshape monetary structures. These can include setting up “basic accounts” for all social entities on a central bank’s digital currency platform. This allows the bank to supervise digital currencies without much impact on the current financial system.
He added a digital currency improves monetary policy effectiveness because the excessive issuance of physical, paper money will be prevented.
His comments come as more central banks consider launching digital currencies. The Bank of China has been at the forefront of these with plans
The GSMA will be working with the United Nations World Food Programme (WFP) to provide civilians with financial relief during humanitarian crises. Examples include pandemics and natural disasters, although the program is not limited to those specific situations.
The joint program will leverage mobile money technology to transfer funds to individual civilians. The digital assistance can be distributed quickly and efficiently, with an extensive digital paper trail to maintain accountability.
The financial aid program will run for the next three years, and builds on the existing five-year relationship between the GSMA and the WFP. The two organizations will work with local governments and mobile operators to implement the program, which will launch in Nigeria before expanding to other countries around the world.
“As humanitarian crises become more frequent, complex and protracted, the need to devise services that are scalable, replicable and efficient has become crucial,” said GSMA Chief Regulatory Officer
As the COVID-19 crisis accelerates the long-term shift away from cash (at least in tax-compliant, legal transactions), official discussions about digital currencies are heating up. Between the impending launch of Facebook’s Libra and China’s proposed central-bank digital currency, events today could reshape global finance for a generation. A recent report from the G30 argues that if central banks want to shape the outcome, they need to start moving fast.
Much is at stake, including global financial stability and control of information. Financial innovation, if not carefully managed, is often at the root of a crisis, and the dollar gives the United States significant monitoring and sanctions capabilities. Dollar dominance is not just about what currency is used, but also about the systems that clear transactions, and, from China to Europe, there is a growing desire to challenge this. This is where a lot of the innovation is taking place.
MIAMI, FL — A 29-year-old Miami man has been accused of using $3.9 million in Paycheck Protection Program money to buy a $318,000 Lamborghini Huracan for himself and make other lavish purchases.
David T. Hines, 29, of Miami, Florida, was charged with one count of bank fraud, one count of making false statements to a financial institution and one count of engaging in transactions in unlawful proceeds.
“The complaint alleges that Hines sought approximately $13.5 million in PPP loans through applications to an insured financial institution on behalf of different companies,” federal prosecutors said. “The complaint alleges that Hines caused to be submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ respective payroll expenses. The financial institution approved and funded approximately $3.9 million in loans.”
U.S. Attorney Ariana Fajardo Orshan of Miami announced the charges Monday along with Acting Assistant Attorney General Brian C. Rabbitt
<strong>Ryan Ermey</strong>: With the fall semester fast approaching, the COVID-19 pandemic has cast a shadow of uncertainty over higher education. Kevin Walker of CollegeFinance.com joins us for a discussion of how the landscape has changed for colleges, students, and parents alike in our main segment. On today’s show, Sandy and I talk tax refund delays and answer reader mail about how to pay for a new home in retirement. That’s all ahead on this episode of Your Money’s Worth. Stick around.
<strong>Ryan Ermey</strong>: Welcome to Your Money’s Worth. I’m Kiplinger’s associate editor Ryan Ermey joined as always by senior editor Sandy Block. And we’re talking tax refunds here in the first segment, Sandy. My question to you to kick things off is did you get your refund?
<strong>Sandy Block</strong>: I owed the IRS. So to me, this is a nice problem to have. But here’s the deal, the deadline for … Read More
Florida activists get money to register and turn out young, minority, former felon voters for presidential election
Four Florida groups that focus on young people, Black and Hispanic citizens, and felons who’ve served their sentences will share more than $2 million in funding to register and turn out voters who’ve traditionally been underrepresented at the polls.
The money, announced Tuesday, comes from the Southern Poverty Law Center Vote Your Voice program.
The grants are aimed at furthering strategies to turn out low-propensity voters, counter practices that make it difficult for some to vote, and help overcome difficulties in organizing and turning out voters during the coronavirus pandemic.
Even a relatively small increase in the potential pool of voters can have a big impact in Florida.
The state awards 29 of the 270 electoral votes needed to win the presidency and has a history of exceedingly close statewide elections. In 2016, Trump won 49% of the vote statewide to Democrat Hillary Clinton’s 47.8%.
The groups will use the
The world’s biggest takeaway delivery firm has hinted at a swoop for one of Just Eat Takeaway, Uber Eats or Deliveroo in a fresh assault on the UK.
The boss of Berlin-headquartered Delivery Hero, which previously owned now-defunct operator Hungryhouse, believes there is scope for acquiring one of the “less good” big three.
Niklas Östberg told The Telegraph: “The only way to enter the UK market would be through an acquisition of some kind.”
The takeaway delivery market has experienced a number of blockbuster deals over the last year as firms consolidate to cut costs and drive better profitability.
Just Eat merged with Takeaway.com in a £6bn deal last year. In June, the enlarged group announced it would acquire US firm Grubhub in a £5.8bn takeover.
Competition regulators last month gave the green light to a $575m (£450m) investment into Deliveroo led by Amazon.
Delivery Hero, listed
Amazon is ramping up its online grocery service with the aim of serving millions of shoppers across the UK by the end of 2020.
Online food sales have almost doubled during the pandemic with grocers struggling to keep up with demand.
Amazon is now after a bigger slice of this fast-growing market, which analysts say could increase pressure on rivals such as Ocado.
“It’s extremely significant” says retail analyst, Richard Hyman.
“[Amazon] can be compelling, disruptive and it’s a business with gigantic ambitions.”
Amazon Fresh offers same or next-day grocery deliveries for customers in London and parts of the Home Counties.
Shoppers have to subscribe to Amazon Prime to get it and users currently have to pay an additional monthly fee or a delivery charge per order. It has about 10,000 products including fresh, chilled and frozen food.
From Tuesday, this service will now be a free benefit to subscribers
Budgeting your money is important, but even with a budget in hand, you might be spending and wasting your hard-earned dollars without even knowing it. And if you’re doing that, then you’re just going to have to work harder and longer to achieve all your goals.
By reducing your bills and watching how much you spend on incidentals, you can cut costs while stowing away funds for the future, so you can enjoy it more once you get there.
Last updated: July 28, 2020
1. Paying Too Much for Housing
Since housing is likely to be an individual’s biggest monthly expense, paying too much for it can easily break your budget. Personal finance experts recommend spending no more than 30% of your income on housing. You can spend less and save more by getting a roommate or moving to a different neighborhood or a city where housing is less expensive.