Milan Ignjatovic, ICT & Economics Expert

12Jan 2024 by Milan Ignjatovic

Sweden to become first cashless country in Europe by 2026

Signs read, "No cash payment in this store" is something that you see in many stores in Sweden. As announced Sweden, will stop accept bills before 2025. Right now, many countries in Europe and around the world have stopped to exchange Swedish krone. However, there are numerous reasons for such behavior one of them are digital currency. In 2018 Sweden central bank sad that the proportion of purchases in shops using cash dropped from about 40% to 13%. Now everyone in Sweden take cards or a mobile payment system to pay goods and services. Riksbank announced a work on e-krona who are entering new phase. One-step closer to cashless society and right now a focus on the design of an e-krone. This ongoing international work on central bank digital currency…

05Jan 2024 by Milan Ignjatovic

ECB concern over Greece non-bank financial institutions (NBFIs)

Bank news

Greece passed a new low that allows non-bank financial institution (NBFIs) to lend money to households and businesses. Regarding non-banking financial institutions that somehow increase the concerns of the European Central Bank may be a just cause. The European Central Bank does not supervise these non-banking financial institutions in Greece. Problems like uncontrolled money lending is a concern but the Greece central bank is the main supervisor of those non-bank financial institutions (NBFIs). ECB says: „The growth of the NBFI sector over the last decade globally, including in Europe, is a source of concern. This is because, in general, the sector is opaque, which means that risks that are not within banking supervisors’ line of sight could be developing. These risks could include the build-up of synthetic and financial leverage,…

04Jan 2024 by Milan Ignjatovic

Nigeria to stop Using Central Bank to Fund Deficit

Economy

Nigeria has borrowed $33 billion form its own Central Bank to fund its budget deficit. Debt restructuring needed to stop the bubble to burst and to make Nigeria economy strong again. Finance Minister Wale Edun said, “We are bringing order to government borrowing“. For long cash, shortages have plagued Nigeria’s economy, due to a CBN directive. One of the largest economy in Africa had to print new currency for financing its fiscal deficit. On March 2023, Supreme Court of Nigeria has ordered the Central Bank of Nigeria to extend the use of old currency notes until December 31. The issue of withdrawal notes will become an election problem who causes anger. The Central Bank says that old notes will remain legal tender in 2024 and that there is no deadline.…

17Dec 2023 by Milan Ignjatovic

Worldcoin cryptocurrency

Economy

Founded in 2019 OpenAI CEO Samuel Altman announced in July a launch of new cryptocurrency who will change the world of finance. This new currency already has more than 2.5 million users worldwide and it is already on its way to become the star of crypto world. Many reason for new iris biometric cryptocurrency who will be the best as they say is a free ownership to everyone. Their aim is to become the world largest digital identity and financial network. Worldcoin will be the universal and global currency no matter your country or background. New cryptocurrency will be provided for free only if you scan your eyes. The users of this system are starting to have serious debate about (tracking personal biometrics). The answer from Worldcoin on the debate…

12Dec 2023 by Milan Ignjatovic

Taiwan central banks & (CBDC) feasibility study

Bank news

Taiwan start (CBDC) research in 2020 and today the central bank of Taiwan has completed a feasibility study for central bank digital currency (CBDC). On Dec. 7. Deputy Governor Mei-Lie Shu says in her speech on banking event that she saw the advantages of (CBDCs) and tokenization. „Central bank currency can serve as the operational basis for tokenization.“ Taiwan central bank has tested a pilot project with consumers and five commercial banks. The goal is to approach to further development of (CBDC) with no timeline for a decision says Mei-Lie Shu. Regarding (CBDC) research Fubon bank has join forces with Ripple and Hong Kong Monetary Authorities in a pilot project using Hong Kong’s e-HKD (CBDC). „But the results of CBDC showed that the application of distributed ledger technology (DLT) had…

09Dec 2023 by Milan Ignjatovic

Australia to become first cashless country by 2025

Economy

Digital transformation and the adoption of new technologies have been really well received by Australian citizens. Covid-19 accelerated this existing digital trend and many banks accepted with joy cashless payment system. Many banks started to close ATMs and branches and ban cash with one goal in mind to become cashless by the end of the decade. Bank Commonwealth, NAB and ANZ stopped handling cash in a few branches, and announced to close more ATMs and branches next year. Unlike other bank’s Macquarie Bank recently announced a complete transition to digital payments by November 2024. Money experts in Australia has warned citizen that banks could start „Cash rationing“ at ATMs. This move will be made because of lower demand for banknotes. However, should people be concerned about going cashless? „It is…

29Nov 2023 by Milan Ignjatovic

Will America cut interest rates in 2024?

Economy

Head of U.S economics are expecting to see the first cut of interest rates in June. The prediction may see first a so-called soft recession who will trigger a central bank cutting of 25 basic point per quarter. There are many speculations about the soft recession but we might see a strong one as many countries started to de-dollarize. Deutsche Bank’s economist predicting the cut of interest rates in the first half on 2024 and a strong slash of rates to slow down the inflation. The bank expects an initial cut of 50 basis points in June 2014 followed by 125 basis point to the end of the year. Raising interest rates in last year have increased 11 times, all in hope to slow down the inflation and stop the…

15Nov 2023 by Milan Ignjatovic

Will BRICS currency be the best?

Economy

As U.S. dollar starts to lose power pulling down Euro and many other currency’s BRICS nations started to be more confident about their new currency. The reason to be confident about new upcoming currency are many says former advisor to Russian President, Sergey Glazyev. BRICS nation already trade in their local currency that was the first step of de-dollarization. The petro-dollar started losing power and new prediction for 2024 are not good for U.S economy. There are many indicators that this gold backed currency will be the best in the world. Such ‘a currency will be the first for long time of period to be gold backed up. United State abounded the golden standard and from that day, the U.S dollar become not much valuable, risking the bubble to explode…

07Nov 2023 by Milan Ignjatovic

Afreximbank’s continental payment system (PAPSS) welcomes 11 African central banks

Bank news

Leading Pan-African Payment and Settlement System (PAPSS) has expanded because more banks are willing to join. The significant effort is to reduce expenses with trade in the region. By incorporating 11, more central banks that are African the African Export-Import bank will play significant role in future trading platform for Africa. The main goal of (PAPSS) is transaction in local currency that eliminate the necessity for using other third-party currencies. More the 85% of payments currently pass through European or U.S banking infrastructure and the cost of transaction are more the $5 billion in fees. Africa’s new (PAPSS) system will reduce the costs and help African counties to grove there economy. Central banks of African countries are participants in PAPSS system and they regulate and serve as agents to commercial…

07Nov 2023 by Milan Ignjatovic

Georgia National Bank selects Ripple as new CBDC partner

Bank news

Ripple block chain-tech Company is a new partner who will help the government of Georgia to develop its central bank digital currency (CBDC). New Georgia cryptocurrency (GEL) will help fast and easy cashless payments in the country. In process of selecting Crypto Companies, Ripple was one of technical excellence and experts in field of block-chain technologies says acting Governor of National Bank of Georgia, Natia Turnava. National Bank of Georgia stated that it would prepare the project and its execution plan for the pilot program with Ripple. Several counties already have selected Ripple as partner in CBDC projects. Few new countries that have signed an agreement with Ripple are Palau and Montenegro to develop a national digital currency strategy. Ripple stated that has discuss 20 new CBDC projects with other…