Kiffmeister’s #Fintech Daily Digest (09/23/2021)

Royal Monetary Authority of Bhutan, Ripple Partner to Pilot CBDC Using Private Blockchain

Bhutan’s Royal Monetary Authority will use a private version of Ripple Lab’s open-source XRP Ledger solution to pilot retail, wholesale and cross border use cases for a digital Ngultrum central bank digital currency (CBDC).  Ripple’s CBDC solution provides central banks with greater control over issuance, management, privacy, and validation than they would get with public blockchains, and can handle payments at the volume of transactions required by a successful retail CBDC.

Basel draft rules make crypto too costly for banks to trade, says industry

Nine banking industry associations have submitted a letter to the Basel Committee on Banking Supervision (BCBS) in response to its proposal to introduce stringent capital requirements for banks looking to hold crypto-assets on their books. In June, the BCBS published a consultation paper that suggested that banks would need to hold $1 in capital for each $1 of Bitcoin exposure. The letter argues for a more nuanced taxonomy of various crypto-assets and their varying risk profiles that would take into account aspects such as the existence of a liquid, two-way market for some crypto assets.

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September 28-30 CordaCon Conference

At the September 28-30 CordaCon2021, I’ll be providing an overview of recent retail CBDC developments. You can register for the event here:

October 4-6 CBDC Conference

On October 4 I’ll be providing an overview of international work on retail CBDC and evolving thinking on motivations, system design and safeguards at The CBDC Conference. You can register for this and the full three-day (October 4-6) event here: