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The Organization for Economic Cooperation and Development (OECD) has published a new taxation framework for the digital currency industry, including central bank digital currency (CBDC). The new Crypto-Asset Reporting Framework (CARF) stems from a review of the 2014 Common Reporting Standard (CRS) to plug the loopholes associated with digital currency taxation among member countries. Under the new framework, tax information on digital currency transactions will be automatically exchanged uniformly in line with existing rules. https://www.oecd-ilibrary.org/taxation/international-standards-for-automatic-exchange-of-information-in-tax-matters_896d79d1-en

The Organization for Economic Co-operation and Development (OECD) released its new tax reporting framework, the Crypto-Asset Reporting Framework (CARF).

The Organization for Economic Co-operation and Development (OECD) Council has adopted a new set of recommendations on how digital identity should be governed on the proposal of the Public Governance Committee (PGC).

I've looked for cross-country comparisons of residents' trust in government, and so far this OECD metric is the best I've found, and the range is quite significant from Switzerland at the very trusting end (84% responding "yes" to the question of confidence in the government) to 31% from Americans, which could explain their tendency to be anti-CBDC.

Prepared with the participation of over 50 jurisdictions, the OECD Taxing Virtual Currencies report is the first comprehensive analysis of the approaches and policy gaps across the main tax types (income, consumption and property taxes) for such a large group of countries. This report also considers the tax implications of a number of emerging issues, including the growing interest in stablecoins and 'central bank digital currencies'; as well the evolution of the consensus mechanisms used to maintain blockchain networks and the dawn of decentralised finance.

The OECD published a report that analyzes the connection between decentralized finance (DeFi) protocol liquidations and price volatility in decentralized exchanges (DEXs). The analysis employs transactional data of three of the largest DeFi lending protocols and suggests a positive relation between liquidations and post-liquidations price volatility across the main DEX pools. It also shows a positive correlation among borrowing rates and across different assets, which indicates that the liquidity in DeFi lending pools is connected, and that at extreme events, when investors pursue the same strategy at large numbers, liquidity of a particular asset may dry up in each of the pools across protocols. This implies that the liquidations mechanism might be limited in its ability to restore liquidity, as liquidators themselves rely on the liquidity available in the pools to repay underwater loans.

The OECD published a paper, with contributions from Satoshi Capital Advisors, that explores how the design and implementation of central bank digital currencies (CBDCs) can help countries mitigate threats to individual liberties and human rights, as well as promote the equitable treatment of citizens, the protection of privacy, and citizens' trust in central banks. The sound governance architecture of CBDC systems can further support these objectives.

The OECD published a paper that analyzes the benefits, risks and implementation challenges of open finance and provides policy recommendations for the safe and successful implementation of such data-sharing frameworks in finance. It considers the impacts of providing access to customers' financial data and how to do this responsibly and safely, with due consideration for data privacy. The paper also discusses other consumer safeguards, notably related to consent and liability. Finally, it considers whether there is a need to support the development of technical infrastructure to promote data interoperability.

The OECD published a paper that provides evidence of increased concentration of decentralized finance (DeFi) liquidity provision in decentralized exchanges (DEXs) and automated market makers (AMMs). A low trade count is observed in liquidity pools where DeFi liquidity provision is concentrated, with 20% of the pools of some of the DEXs examined accounting for more than 90% of the trading volume of these DEXs. Also, a small number of liquidity providers participating in the examined pools represent a significant part of the trading activity. This could exacerbate DeFi vulnerabilities, with possible impact on market functioning, price discovery, and competitive dynamics.

This OECD report examines the benefits of asset tokenisation and the challenges to its wider adoption; analyses the potential disruptive effect on trading, liquidity, pricing, clearing and settlement; highlights the increased importance of a trusted and credible central authority in a tokenised environment (such as a custodian); sheds light to the possible necessity for a tokenised form of central bank digital currency or stablecoin for the payment leg of security settlement on DLT-based trading venues; and discusses the policy implications of tokenisation for financial markets.

This report examines both the benefits and risks big data and AI can bring to the insurance industry. In particular, this reports discusses how the OECD Recommendation on Artificial Intelligence, and the European Commission's Independent High-Level Expert Group on Artificial Intelligence's (HLAG AI) Ethics Guidelines for Trustworthy AI should be considered in the context of the insurance sector. The report concludes with policy areas in which policy makers may consider action in the insurance sector in relation to big data and AI going forward.

According to the OECD, competition will increase as new players enter the industry, but the long-term impact is more open, and regulation shall decisively influence to what extent BigTech shall enter the industry and who shall be the dominant players. Pursuant to OECD's view, the challenge for regulators will be to keep a level playing field that strikes the right balance between fostering innovation and preserving financial stability where the consumer protection concerns rise to the forefront.

The OECD published a paper on asset tokenization; the digital representation of real (physical) assets on distributed ledgers, or the issuance of traditional asset classes in tokenized form. It examines the benefits of tokenization and the challenges to its wider adoption, and the potential disruptive effect on trading, liquidity, pricing, clearing and settlement. It also highlights the increased importance of a trusted and credible central authority in a tokenized environment (such as a custodian), and sheds light to the possible necessity for a tokenized form of central bank digital currency or stablecoin for the payment leg of security settlement on DLT-based trading venues.

"Open banking allows users to access financial information and services through consent-based data portability. This paper brings together the views of private and public experts from a wide variety of countries to explore opportunities and challenges of open banking for financial regulation, privacy protection, and competition. It discusses the different approaches taken by jurisdictions across the globe, and the importance of regulation and standards. While open banking empowers users in sharing and re-using their data across digital services, online platforms, sectors and borders, uncertainty in the interactions with data protection and privacy regimes remains challenging. This paper informs OECD work to consider how cross-sectoral cooperation between financial, competition and data protection authorities could help further open banking."

The OECD published a paper that assesses the role of centralised finance (CeFi) and decentralised finance (DeFi), and the disproportionate impact the crypto market turmoil has had on retail market participants. It examines learnings of the recent crypto-asset market downturn, including high interconnectedness within the crypto-asset ecosystem; elaborate mechanisms of financial engineering that heavily use leverage and are built on the composability offered by DeFi (i.e., components of DeFi are pieced together to create new products); and increased market concentration. The paper also highlights the urgency for policy action and provides policy recommendations.

Central Bank of Chile Governor Mario Marcel: "CBDC does not necessarily need blockchain... When a Central Bank issues its currency,either in physical or digital format, trust should be a given. Also is far from obvious that all market participants should have access to sensitive information such as all transactions in which the CBDC was used.

Whilst crypto-assets are currently only held by a minority of financial consumers, the level of awareness of cryptocurrencies across the three markets studied is high, and appetite exceeds current levels of ownership. While the majority of financial consumers investing in cryptoassets say that they could afford to lose the money invested, given the general lack of understanding of cryptoassets or the risks involved, the reasons for investing, the use of credit by some and the lack of professional advice among many when purchasing, there is a strong likelihood of a misalignment between the risk profile of some financial consumers and the level of risk they are exposed to.