Regular visitors to our News section will be aware of one of the major developments in digital currencies – the attempt by central banks to muscle in on the scene. Central Bank Digital Currencies (CBDCs) are digital, but not crypto currencies. The differentiating factor is that the central banks keep a register of the holders and transactions in the digital currency. Cryptos use an independent algorithm as a register of money supply and validity. To own a CBDC account is to have an account with a central bank, one where the account is filled with digital tokens as opposed to mainstream, fiat currency.
The Banque de France, the Swiss National Bank and BIS Innovation Hub are hailing the completion of their cross-border wholesale central bank digital currency (wCBDC) experiment.
Accenture, Credit Suisse, Natixis, R3, SIX Digital Exchange and UBS also took part in the experiment, dubbed Project Jura, which explored cross-border settlement of tokenised assets in wCBDCs on a DLT-enabled platform.
It involved the direct transfer of euro and Swiss franc wCBDCs between French and Swiss commercial banks on a single DLT platform operated by a third party. Tokenised asset and foreign exchange trades were settled using payment versus payment and delivery versus payment mechanisms. The experiment was conducted in a near-real setting, using real-value transactions and complying with current regulatory requirements.
The partners say that Jura is novel in two ways. First, it tests a new approach to promote secure, fast and efficient cross-border settlements by extending the safety of central bank money to cross-border settlements between resident and non-resident financial institutions using multiple wCBDCs.
Second, it shows a new approach that may give central banks comfort to issue wCBDC on a third-party platform with separate sub-networks and to allow regulated non-resident financial institutions access to wCBDC.
The lender is seeking to fund claims for financial mis-selling. The term of the loan is 15 months.
Below are some details from the borrower’s pitch – as ever, we’ve done due diligence but cannot warrant or guarantee the truth of the representations. For full detail, register or log in here.
Historical Performance And IFISA Process Guide
That figure is the result of over £24 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2020/21 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.