Milan Ignjatovic, ICT & Economics Expert

02Oct 2025 by Milan Ignjatovic

Korea’s FX War: Is the Won Doomed by Debt and the Dominant Dollar?

The central bank of South Korea intervened in the FX market by selling $800 million US dollars (or other currencies) and buying Korean won (KRW) to support the value of the won. This is typically done to suppress volatility or alleviate the depreciation of the local currency. We accept the facts that US Dollar is the most common currency for South Korea's trade and financial transactions. The depreciation problem is almost always the Won-Dollar exchange rate (USD/KRW). That is not the only matter The Bank of Korea (BOK) has significantly increased its foreign exchange intervention in recent years by selling US dollars and buying Korean won with the aim of stabilizing its economy. Intervention PeriodNet Sale AmountContextJuly 2023 to June 2024$9 Billion (Net Sale)Total amount net-sold by the Korean government…

28Sep 2025 by Milan Ignjatovic

Stablecoins Explained: Types, Risks, & The U.S. GENIUS Act

Financial System Fundamentals

Stablecoin is a type of cryptocurrency that is designed to maintain a stable value, typically by being pegged to a specific asset. Unlike highly volatile cryptocurrencies like Bitcoin, stablecoins aim to provide price stability, making them more suitable for everyday transactions, savings, and financial contracts. Stablecoins are issued by a variety of entities, ranging from large financial technology companies and crypto exchanges to decentralized autonomous organizations (DAOs). The issuer is responsible for creating the stablecoin, managing its reserves, and ensuring its stability mechanism functions correctly. How Stablecoins Work Stablecoins achieve their stability through different mechanisms, which also define their various types: Fiat-Backed Stablecoins: These stablecoins are backed by a reserve of a traditional fiat currency, such as the US dollar or the Euro. The issuer holds a corresponding amount of…

27Sep 2025 by Milan Ignjatovic

Security or Surveillance? Inside Vietnam’s Mass Account Freezing and the War on Financial Privacy

Bank news, Economy

The news circulating that Vietnam's State Bank (SBV) froze or deactivated millions of bank accounts is related to a massive-scale "data-cleansing" and anti-fraud campaign. Over 86 million accounts were largely inactive, dormant, unverified, or were "ghost" accounts that did not comply with the new biometric authentication standards (facial recognition or fingerprint information linked to the national ID database). Reason behind this move is under a government initiative (Project 06) to combat fraud, money laundering, and cybercrime by making every bank account traceable to a confirmed, biometrically validated identity. The move is viewed as a wholesale regulatory transformation, aimed at placing Vietnam's electronic payment system on a secure foundation as it races ahead to becoming a cashless economy. This step triggers a hot debate between national security and financial inclusion objectives.…

25Sep 2025 by Milan Ignjatovic

Europe’s Banks Are Fighting Back. The Digital Euro Is Just the Beginning.

Bank news

Nine of Europe's top banks, including UniCredit and ING, said that they are creating a new business to launch a euro-denominated stablecoin. The Amsterdam-based venture will roll out its stablecoin in the second half of next year. Based on information made public, the new company's name founded by the European banks has not been publicly disclosed yet. The articles cite that a CEO would be appointed "soon" and that the consortium has incorporated a new company in the Netherlands. It is intended to be licensed and regulated by the Dutch Central Bank as an e-money institution under the EU's Markets in Crypto-Assets Regulation (MiCAR). The focus of the launches has been on the stablecoin itself and banks participating in the project behind the venture are ING, UniCredit, DekaBank, Banca Sella,…

25Sep 2025 by Milan Ignjatovic

Swiss franc the world’s “safe haven” currency who Rejects a Retail Digital Franc (CBDC) for public use

Economy

Over 90% of the world's central banks are now considering, developing, or piloting a CBDC. Very Small Nations/Territories may be without resources, financial infrastructure, or urgent need to assign a central bank team to a CBDC project. It is extremely difficult to detail a certain number of nations that possess national currencies with no study of a digital equivalent, since any list would be transient and would simply include the smallest, least developed economies whose central banks are not publicly reported to international bodies. In practical terms, almost every economy of scale is under CBDC exploration. Switzerland are particularly involved in the development and research of Central Bank Digital Currencies (CBDCs) but on very different approach than the rest of the world. The SNB is one of the earliest major…

24Sep 2025 by Milan Ignjatovic

The First Domino Falls? How Kazakhstan is Building a ‘CryptoCity’ and Unlocking the Digital Tenge

Economy

The National Bank of Kazakhstan has introduced a pilot project of a stablecoin named Evo (KZTE), whose price will be tied to the country's national currency, the tenge. The test is being conducted within the bank's Digital Assets Regulatory Sandbox. It is not an isolated endeavor but part and parcel of a very large, concerted effort for the transition of the country's economy. The economy of Kazakhstan has been historically dependent on mining and energy industries. The government, led by President Kassym-Jomart Tokayev, is actively pursuing a policy of digitalization to decrease the economy's reliance on these industries and make it more contemporary. Kazakhstan desires to transform into a regional leader and a "digital nexus" of Central Asia. Being a central bank, the role of the National Bank is to…

24Sep 2025 by Milan Ignjatovic

The Dollar’s End Game: Is the Euro Rising to Claim the Throne?

Economy

The euro is the world's second most important currency, ranking behind the U.S. dollar. However, the gap between the dollar and the euro in worldwide use is large. Certain recent U.S. policies, including tariffs, huge tax cuts, and political interference with the Federal Reserve, have reduced the dollar's reputation as a "safe haven" currency. This has contributed to a weaker dollar and a stronger euro. These conditions provide the euro with an opportunity to bolster its global position and provide investors with a real alternative. Greater global standing would provide the euro area with increased "financial independence." It would also serve as an insurance against lost confidence in the dollar and could create funding cost advantages for member states and euro area firms. The share of the euro in foreign…

19Sep 2025 by Milan Ignjatovic

The ECB Just Dumped €200M in Bonds. Is a Crisis Coming?

Economy

The European Central Bank (ECB) sold over €150 to €200 million worth of World line SA's bonds, which is a payments processor, on September 18, 2025, according to the Financial Times and other coverage. The ECB disposed of World line SA's bonds because of World line SA's alleged connection to customers scammed? The idea that a move by a central bank to sell assets could be the prelude to a great crisis is not new; it's a story motif repeated throughout history. Let's "face the fact" that if a central bank as powerful as the European Central Bank (ECB) is directly invested in such a dramatic policy shift, it's not done lightly. They're not reacting to some passing glitch; they're responding to what they see as major structural risks to…

17Sep 2025 by Milan Ignjatovic

Thailand’s Baht Strength could end the central bank’s independence

Economy

BANGKOK — On its surface, it is a straightforward tale: A strong currency, the Thai baht, is damaging the nation's prime export and tourism sectors. The culprit, officials believe, is a recent surge in gold exports. In response, a healthy central bank is considering levying a new gold transactions tax to stabilize the currency, but the outgoing governor of the central bank leaves with one last, foreboding warning about the nation's weak fiscal health. But a closer look at the politics and numbers uncovers far more a complex picture of institutional strain, divergent economic signals, and underlying policy divide on the eve of a historic leadership transition. The Thai baht has recovered 7% to 7.9% since January, one of the region's best in Asia and driving it to a four-year…

17Sep 2025 by Milan Ignjatovic

Australia’s Payments War: RBA’s Surcharge Ban vs. Big Banks

Bank news

The Reserve Bank of Australia (RBA) has ignited a financial firestorm with its ambitious plan to redefine the nation's payments industry. At the heart of this reform is a radical proposal to ban surcharging on debit, prepaid, and credit card transactions by July 2026. What the RBA is aiming to do is clear: placing an estimated $1.2 billion annually in consumers' pockets and ending a system where low-cost debit card users pay for the rewards programs of high-cost credit card users. However, the action has sparked a venomous reaction from the country's most powerful financial institutions. Australia's "big four" banks—Commonwealth Bank of Australia (CBA), Westpac, National Australia Bank (NAB), and ANZ—have threatened apocalyptic "unintended consequences." They argue that this regulatory overhaul will ramp up yearly card charges, cut interest-free periods,…