{"id":555920,"date":"2021-10-03T04:14:18","date_gmt":"2021-10-03T04:14:18","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/10\/03\/forget-about-crypto-central-banks-are-worried-about-their-own-digital-currencies\/"},"modified":"2021-10-03T04:14:18","modified_gmt":"2021-10-03T04:14:18","slug":"forget-about-crypto-central-banks-are-worried-about-their-own-digital-currencies","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/10\/03\/forget-about-crypto-central-banks-are-worried-about-their-own-digital-currencies\/","title":{"rendered":"Forget about crypto \u2014 central banks are worried about their own digital currencies"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-10\"><\/a> <strong>Central banks are still worrying about the effects of central bank digital currencies (CBDCs) on the<\/strong> <strong>global financial system:<\/strong> Adoption of national digital currencies could exacerbate financial crises in the future by intensifying runs on commercial banks, according to <a href=\"https:\/\/www.bis.org\/publ\/othp42_fin_stab.pdf\">a report (pdf)<\/a> by the Bank of International Settlements picked up by <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-09-30\/central-banks-see-risks-in-government-backed-digital-currencies?sref=mmeFTDW1\">Bloomberg<\/a>. The report\u2019s authors suggest that during future crises depositors could see digital currencies safe haven assets, resulting in increased flight from banks and more liquidity stress. It is also possible that investors begin to put more of their capital into digital currencies and less into other low-risk assets such as treasuries and money market funds, potentially pushing up yields in the money markets.<\/p>\n<p><strong>The era of national digital currencies is getting closer:<\/strong> China is getting closer and closer to issuing its digital yuan on a national level, and this is pushing other central banks around the world to think about issuing their own digital currencies. The Federal Reserve, the European Central Bank and the Bank of Japan are all considering moving forward with digital versions of their own national currencies.<\/p>\n<p><strong>CLOSER TO HOME-<\/strong> <strong>The institutional allocation of <\/strong><strong><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/a2c026be-a09a-4fab-a0aa-879114380e56\">ACWA Power\u2019s IPO<\/a><\/strong><strong> was nearly 248x <\/strong><strong>oversubscribed <\/strong>as investors lined up for a piece of the Saudi renewable energy player, reports <a href=\"https:\/\/www.cnbcarabia.com\/news\/view\/89248\">CNBC Arabia<\/a>. The Saudi outfit \u2014 which has operations here in Egypt \u2014 is set to raise USD 1.2 bn from the sale of an 11.1% stake. Our friends at EFG Hermes KSA are bookrunners on the transaction alongside Emirates NBD Capital and FAB.<\/p>\n<p><strong>Also from the kingdom: Saudi\u2019s sovereign debt just got a major boost: <\/strong>Saudi Arabia\u2019s sukuk will as of next April be included in the FTSE\u2019s local currency Emerging Markets Government Bond Index, giving KSA\u2019s sovereign debt better visibility with money managers, Saudi\u2019s Tadawul <a href=\"https:\/\/www.saudiexchange.sa\/wps\/portal\/tadawul\/about\/media\/mediacenter.pressrelease\/!ut\/p\/z1\/pc9NCsIwEAXgs_QAkkma1LiMEZtgba21P2YjWUlAq4h4fmNwaxSc3cD34D1k0IDMaB_uaO_uMtqT__cmO-hNTrHmZFU1TEAt8QIzWWGgGeoDIERyPKNQ5LqcgqiF6pbdLoUqReafPNDf8vDhBHzPm0BKVUgFnnAKvsF63uCt6lIg7A1iE6PgtSGASMnG3tD13LYDOD0RSfIEgoVMtA!!\/p0\/IZ7_IPG41I82K0V5B0QCJCRIU71006=CZ6_IPG41I82KOS5A0QC1D15CO1046=LA0=\/?operation=SHOW_PRESS_DETAIL&pressID=57&pageView=SHOW_PRESS_DETAIL&daterange=&datePeriod=-1&textSearch=\">announced<\/a> Friday.<\/p>\n<p><strong>Vulture funds are lapping up Evergrande debt<\/strong>, expecting that the Chinese government will ride to the rescue and bail out the property giant, the <a href=\"https:\/\/www.ft.com\/content\/1cf5bb08-e588-4790-987e-34aa3f5a604a\">Financial Times<\/a> reports. The news comes after the world\u2019s most indebted company <a href=\"https:\/\/www.reuters.com\/world\/china\/china-evergrande-shares-swing-bondholders-await-word-payments-2021-09-30\/\">missed another bond payment<\/a> on Friday.<\/p>\n<div class='stock-ticker-panel'>\n<table class='table stock-ticker-table table-striped markets-table'>\n<tbody>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>EGX30 <\/strong><\/p>\n<\/td>\n<td>\n<p>10,517<\/p>\n<\/td>\n<td>\n<p>+1.2% (YTD: -3.0%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD (CBE)<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 15.66<\/p>\n<\/td>\n<td>\n<p>Sell 15.76<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD at CIB<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 15.66<\/p>\n<\/td>\n<td>\n<p>Sell 15.76<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Interest rates CBE<\/strong><\/p>\n<\/td>\n<td>\n<p>8.25% deposit<\/p>\n<\/td>\n<td>\n<p>9.25% lending<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Tadawul<\/strong><\/p>\n<\/td>\n<td>\n<p>11,495<\/p>\n<\/td>\n<td>\n<p>+1.0% (YTD: +32.3%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>ADX<\/strong><\/p>\n<\/td>\n<td>\n<p>7,699<\/p>\n<\/td>\n<td>\n<p>-0.4% (YTD: +52.6%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>DFM<\/strong><\/p>\n<\/td>\n<td>\n<p>2,845<\/p>\n<\/td>\n<td>\n<p>+0.7% (YTD: +14.2%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>S&P 500<\/strong><\/p>\n<\/td>\n<td>\n<p>4,357<\/p>\n<\/td>\n<td>\n<p>+1.2% (YTD: +16.0%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>FTSE 100<\/strong><\/p>\n<\/td>\n<td>\n<p>7,027<\/p>\n<\/td>\n<td>\n<p>-0.8% (YTD: +8.8%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Brent crude<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 79.28<\/p>\n<\/td>\n<td>\n<p>+1.2%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Natural gas <\/strong>(Nymex)<\/p>\n<\/td>\n<td>\n<p>USD 5.62<\/p>\n<\/td>\n<td>\n<p>-4.2%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Gold<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 1,758.40<\/p>\n<\/td>\n<td>\n<p>+0.1%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>BTC<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 48,167.50<\/p>\n<\/td>\n<td>\n<p>-0.54% (as of midnight)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><strong>THE CLOSING BELL-<\/strong><\/p>\n<p><strong>The EGX30 rose 1.2% at Thursday\u2019s close<\/strong> on turnover of EGP 906 mn (42.6% below the 90-day average). Local investors were net sellers. The index is down 3.0% YTD.<\/p>\n<p><strong>In the green: <\/strong>Raya Holding (+6.8%), Orascom Development Egypt (+4.8%) and AMOC (+3.8%).<\/p>\n<p><strong>In the red: <\/strong>Egypt Kuwait Holding-EGP (-0.9%), Mopco (-0.6%) and Abou Kir Fertilizers (-0.5%).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Central banks are still worrying about the effects of central bank digital currencies (CBDCs) on the global financial system: Adoption of national digital currencies could exacerbate financial crises in the future by intensifying runs on commercial banks, according to a report (pdf) by the Bank of International Settlements picked up by Bloomberg. The report\u2019s authors [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7210],"tags":[1042,518,72,216,122],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-555920","post","type-post","status-publish","format-standard","hentry","category-planet-finance","tag-acwa-power","tag-digital-currency","tag-enterpriseam","tag-evergrande","tag-planet-finance","wpautop","entry"],"acf":{"mongo_id":"d84d8295-c041-40d5-a973-b9bbe276689e","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[555896],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Forget about crypto \u2014 central banks are worried about their own digital currencies - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/10\/03\/forget-about-crypto-central-banks-are-worried-about-their-own-digital-currencies\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Forget about crypto \u2014 central banks are worried about their own digital currencies\" \/>\n<meta property=\"og:description\" content=\"Central banks are still worrying about the effects of central bank digital currencies (CBDCs) on the global financial system: Adoption of national digital currencies could exacerbate financial crises in the future by intensifying runs on commercial banks, according to a report (pdf) by the Bank of International Settlements picked up by Bloomberg. 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