Layering and Pass-through wallet: Difference between pages

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1.
''Information technology - blockchain - Central Bank Digital Currencies (CBDCs).''


''Money laundering.''
In the context of Central Bank Digital Currencies (CBDCs), a pass-through wallet is a proposal for a tool to access CBDC held on the central bank's infrastructure, without holding any CBDC directly itself.


The undertaking of a series of financial transactions with the intention of disguising the true source of laundered money.


This is often the second stage of money laundering.
:<span style="color:#4B0082">'''''UK digital pound consultation'''''</span>


It would follow initial 'placement' of the illegally obtained money into the legitimate financial system.
:"The Bank [of England] would provide the digital pound and the central infrastructure, including the ‘core ledger’.  


:Private sector companies – which could be banks or approved non-bank firms – would be able to integrate into the central digital pound infrastructure and provide the interface between the Bank and users.


2.
:They would do this by offering digital ‘pass-through’ wallets to end users.  


''Market manipulation.''


The (illegal) practice of simultaneously entering a large number of orders intended to be cancelled - for example to buy - together with a smaller number of orders intended to be executed - for example to sell.  
:The wallets could be integrated into their other services.
 
:They are known as ‘pass-through’ wallets... because the user’s holdings of digital pounds are recorded anonymously on the Bank’s core ledger, in order to safeguard their privacy, and the wallet simply passes instructions from the user to the core ledger.
 
:End-users would interact with these wallets rather than directly with the Bank.
 
 
:Users would interact with digital pounds by using their wallet to see their balance and instruct payments and transfers of digital pounds.
 
:It is likely most people would access the wallet via their smartphone, but there would be alternative options, such as a smart card."
 
:''The digital pound: a new form of money for households and businesses? Consultation Paper - Bank of England - February 2023 - pp 11-12.''


The intention is to artificially influence the market price with the subsequently cancelled orders, and to take advantage of that artificial market price with the executed orders.




== See also ==
== See also ==
* [[Integration]]
* [[Bank]]
* [[Placement]]
* [[Bank of England]]
* [[Spoofing]]
* [[Blockchain]]
* [[Central Bank Digital Currency]]  (CBDC)
* [[Crypto wallet]]
* [[Cryptoassets]]
* [[Digital pound]]
* [[Electronic wallet]]
* [[Financial services]]
* [[Information technology]]
* [[Infrastructure]]
* [[Ledger]]
* [[Money]]
* [[Pass-through ]]
* [[Payment service provider]]
* [[Private sector]]
 
* [[Wallet]]
* [[Wallet provider]]
 
 
==Other resource==
[https://www.bankofengland.co.uk/paper/2023/the-digital-pound-consultation-paper The digital pound: a new form of money for households and businesses? Consultation Paper - Bank of England - February 2023]


[[Category:Compliance_and_audit]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]
[[Category:Technology]]

Revision as of 23:15, 28 June 2023

Information technology - blockchain - Central Bank Digital Currencies (CBDCs).

In the context of Central Bank Digital Currencies (CBDCs), a pass-through wallet is a proposal for a tool to access CBDC held on the central bank's infrastructure, without holding any CBDC directly itself.


UK digital pound consultation
"The Bank [of England] would provide the digital pound and the central infrastructure, including the ‘core ledger’.
Private sector companies – which could be banks or approved non-bank firms – would be able to integrate into the central digital pound infrastructure and provide the interface between the Bank and users.
They would do this by offering digital ‘pass-through’ wallets to end users.


The wallets could be integrated into their other services.
They are known as ‘pass-through’ wallets... because the user’s holdings of digital pounds are recorded anonymously on the Bank’s core ledger, in order to safeguard their privacy, and the wallet simply passes instructions from the user to the core ledger.
End-users would interact with these wallets rather than directly with the Bank.


Users would interact with digital pounds by using their wallet to see their balance and instruct payments and transfers of digital pounds.
It is likely most people would access the wallet via their smartphone, but there would be alternative options, such as a smart card."
The digital pound: a new form of money for households and businesses? Consultation Paper - Bank of England - February 2023 - pp 11-12.


See also


Other resource

The digital pound: a new form of money for households and businesses? Consultation Paper - Bank of England - February 2023