Currencies

* ECB-backed digital currency would lower payment costs * Big impact on financial system needs to be assessed further * ECB document to be weighed by EU finance ministers Thursday (Adds details from document, context) By Francesco Guarascio BRUSSELS, Dec 4 (Reuters) - A digital currency backed by the European Central Bank could be necessary if payments within Europe remain too expensive, a confidential ECB document said, adding that its possible adoption could be accelerated by signs of lower cash usage. Plans for a European public cryptocurrency have begun emerging after social media giant Facebook announced in June its blueprint for Libra, a private digital currency, which spooked regulators who have since raised concerns and said Facebook’s project could be banned. Facebook’s move highlighted the fragmented payment landscape in the European Union, where U.S. card firms dominate plastic payments and no common system has emerged to lower costs for fast transactions … [Read more...] about UPDATE 1-ECB could speed up plans for public digital currency if cash use drops

BRUSSELS (Reuters) - A digital currency backed by the European Central Bank could be necessary if payments within Europe remain too expensive, a confidential ECB document said, adding that its possible adoption could be accelerated by signs of lower cash usage. FILE PHOTO: A computer keyboard lit by a displayed cyber code is seen in this illustration picture taken on March 1, 2017. REUTERS/Kacper Pempel/Illustration Plans for a European public cryptocurrency have begun emerging after social media giant Facebook (FB.O) announced in June its blueprint for Libra, a private digital currency, which spooked regulators who have since raised concerns and said Facebook’s project could be banned. Facebook’s move highlighted the fragmented payment landscape in the European Union, where U.S. card firms dominate plastic payments and no common system has emerged to lower costs for fast transactions across the 28 countries of the bloc. “If industry efforts fall short of … [Read more...] about ECB could speed up plans for public digital currency if cash use drops

LONDON, Oct 3 (LPC) - Irish software firm ION Corporates finalised the terms of a dual-currency, US$1.75bn-equivalent term loan financing via Credit Suisse, bringing an end to a saga that saw the original deal brought via house bank UBS pulled in May having met opposition from loan investors. The six-year debt, which comprises a €1bn term loan B and US$655m TLB, priced in line with guidance of 425bp over Libor/Euribor with a 0% floor, at 99 OID and 101 soft-call for six months. Pricing for both currencies includes a 50bp step-up, should ION Corporates’ family ratings fall below B2/B. “It’s hefty pricing but they got the deal done, so that’s impressive,” a senior banker said. Proceeds will refinance existing debt and pay fees and expenses related to the transaction. The US$1.75bn refinancing for ION Corporates was a brand new mandate for Credit Suisse, which restructured the original failed refinancing to make it more attractive to investors by … [Read more...] about ION Corporates inks final terms on US$1.75bn dual-currency loan

EU finance ministers have decided not to allow Facebook Libra or any other stablecoin (cryptocurrencies tied to conventional currency reserves or physical goods) to operate in the European Union, according to Reuters. Following the meeting ministers came to the conclusion that it is still impossible to say what risks the emergence of a new means of payment carry. “No global stablecoin arrangement should begin operation in the European Union until the legal, regulatory and oversight challenges and risks have been adequately identified and addressed,” the ministers said in a joint statement. Ministers also stated that there was a need to develop special laws to regulate the circulation of cryptocurrencies in the EU. According to the European Commissioner for Financial Affairs Valdis Dombrovskis, the relevant work has already begun. Facebook Libra, which was created by Facebook with the help of 20 different companies, is due to be launched next June. Libra's prospects worsened … [Read more...] about No Digital Currencies: European Union Bans Facebook Libra – Reports

New Delhi (Sputnik): Pakistani Prime Minister Imran Khan has ordered action against dealers and companies selling American dollars at a higher rate, something which has been fuelling the domestic currency's slide to a record-low level. The US dollar touched an all-time high of around Rs. 148 in the interbank market. The prime minister has also set up a committee to control the devaluation of the domestic currency and capital flight from Pakistan. The committee, headed by Hafeez Sheikh, the financial adviser to the Pakistani prime minister, will decide whether the provision of carrying $10,000 by anyone travelling abroad from Pakistan can be slashed down to $3,000. The slide in the value of the domestic currency started after the IMF spoke of a "market determined exchange rate" in its statement on the programme on 12 May. "A market-determined exchange rate will help the … [Read more...] about Pakistan Orders Action Against Forex Firms As Currency Slides to Record Low