There’s not much that’s new on the Bank of Japan’s (BoJ’s) central bank digital currency (CBDC) plans in this speech by Executive Director Uchida Shinichi, but I’m posting it anyways to debunk continuing stories about the BoJ abandoning its CBDC project. The fake news seems to go back to an article in The Paypers that misinterprets the BoJ May progress report, which opened with “the BOJ currently has no plans to issue CBDC” but made it clear that it would continue to undertake technical experiments to be prepared if plans change. Mr. Shinichi reiterated this stance: Whether or not a CBDC should be issued would be a judgment by the people [and] considering the lead time for investment, the day will come when a decision needs to be made… [so] the Bank will proceed with its technical experiments to test the feasibility of CBDCs and explorations into institutional arrangements so as to support such decision making.” [Read the speech at the BoJ]
The Clearing House (TCH) published a paper that analyzes US insured depository institutions legal authority to issue stablecoins and engage in stablecoin-related activities. It finds that, in 2020 and 2021, Office of the Comptroller of the Currency (OCC) gave national banks the clear legal authority to issue and exchange stablecoins, based on language in the National Bank Act, and consistent with numerous legal decisions and regulatory determinations regarding a bank’s authority to issue payments and deposit instruments. National banks have always been permitted to develop innovative deposit and payment mechanisms, as receiving deposits and acting as financial intermediaries are core functions of banks. [Read more at the TCH]
US Law firm Davis Wright Tremaine LLP (DWT) published a report on Wyoming’s Custodia Bank’s successful complaint regarding the Federal Reserve’s tardy response to the bank’s application for a Master Account. DWT represented Custodia in the legal action, and they believe We believe this is the first case in which claims seeking to compel the grant of a master account have proceeded beyond the motion to dismiss stage. I reported on this some weeks ago but with little of the detail included here. I am quite surprised at the crypto press hasn’t picked up on this important news, but I guess they prefer their stories spoon fed to them. [Read more at DWT]
I will be discussing global central bank digital currency (CBDC) developments at the Digital Euro Association’s Digital Money Academy tomorrow. If you want to get into CBDCs, register for the Academy here!
Kiffmeister’s Global Central Bank Digital Currency Monthly Monitor
Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So for any of you out there who work for a central bank, ministry of finance or international financial institution who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at firstname.lastname@example.org.
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