Project Rosalind has demonstrated that a well designed API layer could work with different private sector applications and central bank ledger designs and that a set of simple and standardised API functionalities could support a diverse range of use cases. The completed initiative, a joint experiment run by the BIS Innovation Hub London Centre and the Bank of England around central bank digital currencies (CBDCs), developed 33 API functionalities and explored more than 30 retail CBDC use cases. These use cases covered a broad range of domains for individuals and businesses, such as peer-to-peer transfers, retail payments for goods and services and small-value business transactions. Continue reading…

The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) have launched a public consultation on the first batch of policy products under the Digital Operational Resilience Act (DORA). This includes four draft regulatory technical standards (RTS) and one set of draft implementing technical standards (ITS). These technical standards aim to ensure a consistent and harmonised legal framework in the areas of ICT risk management, major ICT-related incident reporting and ICT third-party risk management. The consultation runs until 11 September 2023. Continue reading…

Mr Luigi Federico Signorini, Senior Deputy Governor of the Bank of Italy, recently gave a speech at the Villa Mondragone International Economic Seminar, Round table on “Risks from inflation and opportunities from fragmentation” at Monte Porzio Catone, Rome. After the Second World War, multilateral institutions, such as the International Monetary Fund, the World Bank and the World Trade Organisation (as it is now called), have provided a framework in which a rule-based system of international cooperation has flourished, though initially only in our part of the world. A similar framework for cooperation in other key fields has been provided by the WHO and other institutions. Continue reading…

Those marketing cryptoassets to UK consumers will need to introduce a cooling-off period for first time investors from 8 October 2023, under new advertising rules announced by the FCA. As part of a package of measures designed to ensure those who buy crypto understand the risk, ‘refer a friend’ bonuses will also be banned. The new rules mean crypto firms must ensure that people have the appropriate knowledge and experience to invest in crypto. Those promoting crypto must also put in place clear risk warnings and ensure adverts are clear, fair and not misleading. The FCA’s rules follow government legislation to bring crypto promotions into the regulator’s remit. 

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Inflation has been coming down, with the latest data showing a broad-based decline. But it is still projected to remain too high for too long. In our latest projections, Eurosystem staff expect headline inflation to average 5.4% in 2023, 3.0% in 2024 and 2.2% in 2025. Staff have also revised up their projections for core inflation, which they now see reaching 5.1% in 2023, before it declines to 3.0% in 2024 and 2.3% in 2025. This revision is due to past upward surprises in inflation and the implications of the robust labour market for the speed of disinflation. Specifically, we expect both wages and employment to continue growing strongly over the projection horizon, while output growth will be weaker this year and next. In this context, labour productivity growth will be lower and rising unit labour costs are likely to put upward pressure on inflation. Continue reading…

by František Nonnemann & Vladan Rámiš

The right to be forgotten (right to erasure) is one of the well-known, and somewhat feared, legal institutes introduced by GDPR. On the other hand, the right to erasure is not absolute. It does not always apply and must be balanced against the interests and rights of other persons. However, this does not mean that the scope of the right to erasure is clear in practice and does not raise several issues and uncertainties. How should a data controller, especially an internet search engine, proceed if a data subject objects that the data displayed or otherwise processed is untrue? Misleading, offensive, factually incorrect? The search engine operator usually acts as the controller of the personal data it displays, but it is not the one who has placed the data on the Internet. It therefore has no other information how to assesses the accuracy of the data which has been published on the source page. Continue reading…

The BIS Innovation Hub’s Nordic Centre has successfully concluded Project Aurora, a proof of concept that explores new ways of combating money laundering with a combination of payments data, privacy-enhancing technologies, artificial intelligence (AI) and enhanced cooperation across institutions and borders. According to the Financial Action Task Force (FATF), almost all large money laundering schemes are cross-border and involve different business sectors. Meanwhile, financial institutions often face limitations in detecting potential suspicious networks and transactions due to their reliance on fragmented data and systems. Continue reading…

A few weeks ago, the Commission adopted a Recommendation on how to combat commercial scale online piracy of sports and other live events, such as concerts and theatre performances. It encourages Member States, national authorities, holders of rights and providers of intermediary services to take effective, balanced and appropriate measures to fight unauthorised retransmissions of such streamings, in full compliance with fundamental rights and personal data protection rules. By stepping up the fight against online piracy, the Recommendation will contribute to strengthening the competitiveness of the EU sport and creative industries.
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Eurojust has supported the authorities in the Netherlands and Finland with a coordinated operation against dividend fraud and tax evasion. During an action day, two suspects were arrested in the Netherlands and Finland, who are allegedly involved in so-called ‘Cum-Cum’ and ‘Cum-Ex’ fraud. Eurojust assisted with organising the action day and helped set up a joint investigation team (JIT) between Finland, the Netherlands and Germany. Continue reading…