Month: January 2022

Kiffmeister’s #Fintech Daily Digest (01/31/2022)*

~ kiffmeister

Global developments in wholesale central bank digital currency (CBDC)

Payments Canada published a paper that explores global wholesale CBDC developments in different jurisdictions: Australia, Switzerland, United Arab Emirates and Saudi Arabia. This paper is the fourth installment in Payments Canada’s CBDC educational series. That aims to provide an understanding of a potential CBDC issuance in Canada, along with an exploration of the potential economic and social implications. [Read more]

Trends of Issuing Central Bank Digital Currency in the Arab Region

An Arab Monetary Fund survey found that 76% of 17 Arab central banks are studying the possibilities of issuing central bank digital currency (CBDC), and three of them are participating in experiments to issue them. Two are expected to issue a CBDC in the next three years, while 60% of them expect to be able to issue within six years. 69% of Arab central banks are in the process of determining the type of CBDC issue, while 25% of them are involved in projects/studies to issue more than one type of CBDCs. Financial inclusion comes at the top of the motives to issue retail CBDCs, while for wholesale CBDCs it is combating money laundering and terrorist financing. [Read more]

Blockchain Consensus Mechanisms: A Primer for Supervisors

The IMF published a high-level primer on key aspects of popular blockchain consensus mechanisms, aimed at financial supervisors at central banks, regulatory authorities, and government departments. It focuses specifically on how such mechanisms may impact the mandates of supervisors and policymakers when deployed in financial services markets. It could also help inform IMF staff on policy development and technical assistance related to crypto assets, stablecoins, and blockchains. [Read more]

Crypto risks ‘destabilising’ emerging markets, says senior IMF official

Sharp price swings in cryptocurrencies are causing “destabilizing” capital flows in emerging markets, and the use of crypto in place of traditional currencies poses “immediate and acute risks”, Tobias Adrian, the IMF’s financial counsellor in an interview with the Financial Times. “It is a big challenge for policymakers in some countries… [as] crypto is being used to take money out of countries that are regarded as unstable [by some external investors].” [Read more]

* To get these updates sent to your inbox, please sign up here. Also, for those interested in intra-day updates and news that didn’t make the Daily Digest cut, please check out my Diigo fintech bookmarks: https://www.diigo.com/user/kiffmeister/Fintech.

Central Bank Digital Currency Workshop, Hosted by the CBDC Think Tank 

The CBDC Think Tank (CBDCTT)  is hosting an in-person CBDC Workshop in Washington DC on February 24 exclusively for central bank and finance ministry staff looking to understand and position for CBDC issuance.  [Register here]

Kiffmeister’s #Fintech Daily Digest (01/30/2022)*

~ kiffmeister

David Andolfatto’s Thoughts on the Fed’s CBDC Report

The distinction between synthetic central bank digital currency (sCBDC) and intermediated CBDC (iCBDC) will be of interest mainly to lawyers and regulators. From an economic perspective, the two products appear to be very close–if not perfect–substitutes (assuming their design is optimized). The practical difference between a Federal Reserve liability and a private liability fully-insured by the government seems almost non-existent. [Read more]

This post was sorta in response to the George Selgin critique of the Fed’s CBDC discussion paper, in which he claims that sCBDC is the superior option because it will better promote digital currency (DC) diversity and innovation because it allows for numerous, entirely distinct retail DC, whereas iCBDC provides for a single DC only, albeit one offered and administered by private-sector firms. Both articles are worth a read, especially for the comments. 

There was also a vigorous Twitter thread on the topic that is quite interesting. Although the two articles are U.S.- focused, the discussion around CBDC architecture applies to all retail CBDC design thinking.

Bill Introduced To Make Bitcoin A Legal Tender In Arizona

A bill has been introduced into the Arizona state senate that seeks to add bitcoin to the list of instruments considered legal tender and a lawful medium of exchange in Arizona, enabling residents to pay debts, public charges, taxes and dues with the crypto-asset. What is not clear to me is whether Arizona has what I call a “strong-form” legal tender, by which it’s illegal to refuse payment in legal tender, and whether such a law is enforced. Otherwise it’s quite toothless and meaningless. [Read more]

* To get these updates sent to your inbox, please sign up here. Also, for those interested in intra-day updates and news that didn’t make the Daily Digest cut, please check out my Diigo fintech bookmarks: https://www.diigo.com/user/kiffmeister/Fintech.

Central Bank Digital Currency Workshop, Hosted by the CBDC Think Tank 

The CBDC Think Tank (CBDCTT)  is hosting an in-person CBDC Workshop in Washington DC on February 24 exclusively for central bank and finance ministry staff looking to understand and position for CBDC issuance.  [Register here]

Kiffmeister’s #Fintech Daily Digest (01/29/2022)*

~ kiffmeister

I’ve made some minor updates to my tabulation of retail central bank digital currency (CBDC) explorers. For example, I’ve moved Viet Nam to confirmed explorers, and fixed a few links. Check it out here: https://kiffmeister.com/jurisdictions-where-retail-cbdc-is-being-explored-10-25-2021/.

eNaira: Same Naira, more possibilities for innovation

The Atlantic Council published an article that provides a comprehensive on-the-ground update on Nigeria’s eNaira CBDC launch/pilot (the official press release says “pilot, but it sure looks like a launch). Currently,  only those with bank accounts are currently able to use the eNaira, but the next phase of  the launch/pilot will allow people to register for a “Speed Wallet” with just their National Identification Number (NIN). The central bank hopes to achieve this, along with offline use , through Unstructured Supplementary Service Data (USSD) short codes, which would allow users without a strong internet connection and smartphones to use the CBDC. [Read more]

Caribbean Digital Currency, DCash, Remains Offline for Second Week

Meanwhile, the Eastern Caribbean Central Bank’s DCash, the CBDC used by seven Caribbean nations, has been down since January 14 and it’s unclear when it will be back online. In an email to Bloomberg, Karina Johnson, a DCash project manager at the bank, said officials were working “around the clock” with their service provider Bitt “to re-establish full transaction capabilities.” The Nigerian Central Bank is probably watching this quite nervously, as the eNaira uses the same Bitt platform. [Read more]

4 Reasons Privacy Coins Haven’t Taken Off

Haseeb Qureshi: “The “Cypherpunk’s Manifesto” begins, “Privacy is necessary for an open society in the electronic age.” But privacy coins have failed to take off. Monero and zcash are both worth less today than what they were worth in 2018. Even on darknet markets, where you’d expect privacy coins to thrive, bitcoin is still the asset of choice. Privacy coins have been a disappointment. Why haven’t they taken off? There are four primary reasons.” [Read more] 

The SEC’s Bitcoin ETF Standoff

Frances Coppola: “There seems to be a profound difference of opinion between the US Securities and Exchange Commission (SEC) and those applying for spot Bitcoin exchange-traded funds. The applicants believe the spot Bitcoin market is resistant to manipulation simply because of the nature of Bitcoin, and don’t see why they should have to provide evidence for what they consider to be self-evident. But the SEC believes the Bitcoin spot market is a hornet’s nest, and in the absence of evidence to the contrary, sees no reason to change its view.” [Read more]

* To get these updates sent to your inbox, please sign up here. Also, for those interested in intra-day updates and news that didn’t make the Daily Digest cut, please check out my Diigo fintech bookmarks: https://www.diigo.com/user/kiffmeister/Fintech.

Central Bank Digital Currency Workshop, Hosted by the CBDC Think Tank 

The CBDC Think Tank (CBDCTT)  is hosting an in-person CBDC Workshop in Washington DC on February 24 exclusively for central bank and finance ministry staff looking to understand and position for CBDC issuance.  [Register here]

Kiffmeister’s #Fintech Daily Digest (01/27/2022)*

~ kiffmeister

Yidindji Dollar issued and deployed by the Sovereign Yidindji Government

The Sovereign Yidindji Government has launched a sovereign digital currency (GovCoin). Yidindji is an aboriginal Australian micronation that is part of the Australian Aboriginal Sovereignty. The new payment system is connected with MetaMUI’s self-sovereign identity (SSID) system that is already used in retail stores and government offices. Details are still sketchy, but the unofficial press release says “it’s a convertible currency whose collateral assets are gold and silver and other minerals and natural resources… Money issuance, backed by a digital certificate, is also backed with collateral assets.” [Read more]

Launch of the Cross-Border QR Payment Linkage between Malaysia and Indonesia

Bank Negara Malaysia and Bank Indonesia launched a cross-border payment pilot, through which Malaysian and Indonesian users can make retail payments by scanning merchants’ DuitNow or QRIS (Quick Response Code Indonesian Standard) QR codes. Full launch is expected in 2022Q3. Phase 2 of a similar linkage between Malaysia and Thailand also went live this week. Phase 1, launched in June 2021, allowed Thai users to use DuitNow QR codes to pay Malaysian merchants. Phase 2 will allow Malaysian users to scan Thai QR codes to pay Thai merchants. [Read more]

SEC rejects Fidelity’s proposed spot Bitcoin ETF

Fidelity’s Wise Origin Bitcoin Trust exchange-traded fund (ETF) proposal, submitted by Cboe BZX Exchange, has been disapproved by the U.S. Securities and Exchange Commission (SEC). The SEC concluded that BZX did not meet the requirement that the rules of a national securities exchange be “designed to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest.” Last week, the SEC shot down a proposed spot Bitcoin ETF from First Trust and Skybridge Capital on identical grounds.  [Read more]

* To get these updates sent to your inbox, please sign up here. Also, for those interested in intra-day updates and news that didn’t make the Daily Digest cut, please check out my Diigo fintech bookmarks: https://www.diigo.com/user/kiffmeister/Fintech.

Central Bank Digital Currency Workshop, Hosted by the CBDC Think Tank 

The CBDC Think Tank (CBDCTT)  is hosting an in-person CBDC Workshop in Washington DC on February 24. It’s an intensive and hands-on CBDC course for central bank leadership and staff that are looking to understand and position for CBDCs. The workshop is a mix of lectures from CBDC experts and hands-on exercises. Certification of completion will be provided by the CBDCTT. Note that it is open only to staff from the official sector, such as central bank and finance ministry staff! [Register here]

Kiffmeister’s #Fintech Daily Digest (01/26/2022)*

~ kiffmeister ~ 1 Comment

Mark Zuckerberg’s Stablecoin Ambitions Unravel With Diem Sale Talks

The Meta Platform-backed Diem Association is reportedly in discussions with investment bankers about how best to sell its intellectual property and find a new home for the engineers who developed the technology, cashing out whatever value remains in its once-ambitious Diem stablecoin venture. The Association struck an arrangement with Silvergate Capital to issue Diem, but resistance from the U.S. Fed apparently dealt the effort a final blow. [Read more]

ADB to Develop Prototype for Blockchain-Based Cross-Border Securities Transaction System

The Asian Development Bank (ADB) has launched a project to develop ways to directly connect central banks and securities depositories in the ASEAN+3 region within a blockchain network. The region consists of the Association of Southeast Asian Nations plus Japan, the People’s Republic of China, and the Republic of Korea. The project will also examine systems interoperability and the viability of central bank digital currency (CBDC) in the region. [Read more]

Thailand to regulate cryptocurrency as payment method

Thailand’s Securities and Exchange Commission, Ministry of Finance and The Bank of Thailand plan to issue regulations that would “limit the widespread adoption of digital assets as a means of payment for goods and services. However, technologies and digital assets that do not pose [price volatility, cybertheft, personal data leakage and money laundering] risks would be supported with appropriate regulatory frameworks to drive innovation and further benefit for the public.” [Read more]

Indonesia’s Regulator Prohibits Financial Firms From Facilitating Crypto Trading

Indonesia’s Financial Services Authority has prohibited financial firms from using, marketing, and/or facilitating crypto-asset trading. In addition, the financial regulator reminded the public to always beware of fraudulent Ponzi schemes under the guise of crypto. The OJK does not supervise or regulate crypto-assets. The regulation and supervision of crypto assets in Indonesia are carried out by the Commodity Futures Trading Authority and the Ministry of Trade. [Read more]

IMF Urges El Salvador to Discontinue Bitcoin’s Legal Tender Status

The IMF’s Executive Board recommended that El Salvador discontinue the use of Bitcoin as legal tender in in the country due to the financial risks and liabilities created. IMF directors “stressed that there are large risks associated with the use of Bitcoin on financial stability, financial integrity, and consumer protection, as well as the associated fiscal contingent liabilities.” Directors also “urged the authorities to narrow the scope of the Bitcoin law by removing Bitcoin’s legal tender status. Some Directors also expressed concern over the risks associated with issuing Bitcoin-backed bonds.” [Read more]

SEC Delays Decision on Bitcoin-Related ETFs From Ark 21 Shares, Teucrium

The U.S. Securities and Exchange Commission (SEC) has again delayed decisions on whether to approve or reject the Ark 21 Shares Bitcoin ETF and Teucrium Bitcoin Futures Fund, this time until April 3 and 8, 2022, respectively. [Read more]

* To get these updates sent to your inbox, please sign up here. Also, for those interested in intra-day updates and news that didn’t make the Daily Digest cut, please check out my Diigo fintech bookmarks: https://www.diigo.com/user/kiffmeister/Fintech.

DC3 Conference – From Cryptocurrencies to CBDCs

The International Telecommunication Union (ITU) “DC3 Conference – From Cryptocurrencies to CBDCs” is currently underway and runs to tomorrow (January 27). The Digital Currency Conference is organized by the Digital Currency Global Initiative (DCGI) which is a joint collaboration between the ITU and the Future of Digital Currency Initiative at Stanford University. Tomorrow, I’ll be part of a “fireside chat” on the DCGI’s digital currency ontology work. [Register here]

Central Bank Digital Currency Workshop, Hosted by the CBDC Think Tank 

The CBDC Think Tank (CBDCTT)  is hosting an in-person CBDC Workshop in Washington DC on February 24. It’s an intensive and hands-on CBDC course for central bank leadership and staff that are looking to understand and position for CBDCs. The workshop is a mix of lectures from CBDC experts and hands-on exercises. Certification of completion will be provided by the CBDCTT. Note that it is open only to staff from the official sector, such as central bank and finance ministry staff! [Register here]

Kiffmeister’s #Fintech Daily Digest (01/25/2022)*

~ kiffmeister

FYI I’ve updated my tabulation of wholesale central bank digital currency (CBDC) experiments for the latest developments in the Bank for International Settlements Innovation Hub (BISIH) Project Helvetia with the Swiss National Bank and SIX: https://kiffmeister.com/dlt-based-wholesale-cbdc-experiments-10-23-2021/.

BIS Innovation Hub to focus on CBDC, payments, DeFi and green finance in 2022 work program

In 2022, the BISIH will launch new projects into CBDCs, next generation payments systems and Decentralised Finance (DeFi). CBDCs and improvements in payments systems account for 13 of 17 projects that were active in 2021 or will be launched in 2022. Project Aurum, to be run out of the BISIH’s Hong Kong hub, is one of the new CBDC projects. It will study the benefits and challenges of tiered architectures for the distribution of retail CBDC through banks and payment service providers, focusing on hybrid CBDC and private CBDC-backed e-money architectures. [Read more]

BigTech in Financial Services

According to a new IMF Fintech Note, the rapid and significant expansion of BigTechs in financial services and their interconnectedness with financial service firms are potentially creating new channels of systemic risks. To achieve effective implementation and multiple objectives of financial regulation and supervision, a hybrid approach, combining a mix of entity- and activity-based approaches, is recommended. Home supervisors should establish an entity-based approach to cover the global activities of a BigTech group, while host supervisors could in principle address local risks and concerns mainly through activity-based regulations. This process will require cross-sector and cross-border cooperation, and in the interim, regulatory authorities should actively use all existing regulatory powers to manage risks, while BigTech should adopt and improve governance frameworks through industry codes of conduct and enhanced disclosures. The note recommends that the Joint Forum’s 2012 Principles for the Supervision of Financial Conglomerates be reviewed to address regulatory gaps. [Read more]

* To get these updates sent to your inbox, please sign up here. Also, for those interested in intra-day updates and news that didn’t make the Daily Digest cut, please check out my Diigo fintech bookmarks: https://www.diigo.com/user/kiffmeister/Fintech.

DC3 Conference – From Cryptocurrencies to CBDCs

The International Telecommunication Union (ITU) “DC3 Conference – From Cryptocurrencies to CBDCs” is currently underway and runs to January 27. The Digital Currency Conference is organized by the Digital Currency Global Initiative (DCGI) which is a joint collaboration between the ITU and the Future of Digital Currency Initiative at Stanford University. On the 27th, I’ll be part of a “fireside chat” on the DCGI’s digital currency ontology work. [Register here]

Central Bank Digital Currency Workshop, Hosted by the CBDC Think Tank 

The CBDC Think Tank (CBDCTT)  is hosting an in-person CBDC Workshop in Washington DC on February 24. It’s an intensive and hands-on CBDC course for central bank leadership and staff that are looking to understand and position for CBDCs. The workshop is a mix of lectures from CBDC experts and hands-on exercises. Certification of completion will be provided by the CBDCTT. Note that it is open only to staff from the official sector, such as central bank and finance ministry staff! [Register here]

Kiffmeister’s #Fintech Daily Digest (01/24/2022)

~ kiffmeister

Bank of Korea Says First Phase of CBDC Test Completed Successfully

The Bank of Korea announced the completion of the first phase of its central bank digital currency (CBDC) proof of concept work, in which basic functionality (e.g., minting, issuance and distribution) were successfully simulated. In the next phase, other functions such as offline payments and adding personal information protection will be tested. After the second phase is completed in June 2022, a pilot may be launched in cooperation with financial institutions. [Read more]

China’s central bank expands hunt for digital currency talent

The People’s Bank of China’s Digital Currency Institute’s Shenzhen Institute of Financial Technology published 132 job listings for work on its digital yuan pilot programs. [Read more]

To get these updates sent to your inbox, please sign up here. Also, for those interested in intra-day updates and news that didn’t make the Daily Digest cut, please check out my Diigo fintech bookmarks: https://www.diigo.com/user/kiffmeister/Fintech.

DC3 Conference – From Cryptocurrencies to CBDCs

The International Telecommunication Union (ITU) is organizing the “DC3 Conference – From Cryptocurrencies to CBDCs” scheduled to take place virtually from January 25 – 27, 2022. The Digital Currency Conference is organized by the Digital Currency Global Initiative (DCGI) which is a joint collaboration between the ITU and the Future of Digital Currency Initiative at Stanford University. I’ll be part of a “fireside chat” on the DCGI’s digital currency ontology work. [Register here]

Central Bank Digital Currency Workshop, Hosted by the CBDC Think Tank 

The CBDC Think Tank (CBDCTT)  is hosting an in-person CBDC Workshop in Washington DC on February 24. It’s an intensive and hands-on CBDC course for central bank leadership and staff that are looking to understand and position for CBDCs. The workshop is a mix of lectures from CBDC experts and hands-on exercises. Certification of completion will be provided by the CBDCTT. Note that it is open only to staff from the official sector, such as central bank and finance ministry staff! [Register here]

Kiffmeister’s #Fintech Daily Digest (01/23/2022)

~ kiffmeister

Bitcoin goes down — and time bombs are waiting in the market

As many of you know, crypto markets have recently been tanking, with Bitcoin down about 20% since last Thursday (January 20) and off about 50% from November’s $68,790 all-time high. I don’t cover the ups and downs of the market that closely, but I think this article from David Gerard very succinctly (and amusingly) summarizes the factors behind the latest plunge. I strongly recommend following David for his contrarian views on crypto markets – a nice break from the usual cheerleading. [Read more]

Missed it by That Much: Where the Fed’s Digital Currency Proposal Goes Wrong

George Selgin makes a pitch for the US Fed to facilitate the issuance of synthetic central bank digital currency (sCBDC) as opposed to the intermediated variant (iCBDC) that its recent consultative paper seems to advocate. In the synthetic approach, payment service providers (PSPs) offer digital currency (DC) that is fully backed by reserves held and ring-fenced from the PSPs’ other creditors in Fed Master Accounts. In the intermediated approach, the Fed makes CBDC available to the PSPs who would act as the Fed’s agents (i.e. as custodians and trustees of end user CBDC holdings).

Selgin notes that sCBDC will better promote DC diversity and innovation, because it allows for numerous, entirely distinct retail DCs, whereas iCBDC provides for a single DC only, albeit one offered at and administered by numerous private-sector firms. An iCBDC is likely to be a fairly, if not fully, homogeneous digital product, instead of a set of such products with different features designed to serve the needs of different clients. However, the Fed has so far been reluctant to do open up its Master Accounts to nonbanks, which would be required to get the maximum sCBDC benefits. [Read more]

New Payment System Seeking to Bolster Intra-African Trade Goes Live

A new African payment system, the Pan-African Payment and Settlement System (PAPSS), recently went live in Ghana, setting the stage for its rollout across the continent. The payment system seeks to strengthen African fiat currencies as well as to boost intra-Africa trade. It is an attempt to reduce African countries’ dependence on the U.S. dollar. However, only seven countries — all members of the West African Monetary Zone (WAMZ) — were part of the pilot phase. [Read more]

To get these updates sent to your inbox, please sign up here. Also, for those interested in intra-day updates and news that didn’t make the Daily Digest cut, please check out my Diigo fintech bookmarks: https://www.diigo.com/user/kiffmeister/Fintech.

DC3 Conference – From Cryptocurrencies to CBDCs

The International Telecommunication Union (ITU) is organizing the “DC3 Conference – From Cryptocurrencies to CBDCs” scheduled to take place virtually from January 25 – 27, 2022. The Digital Currency Conference is organized by the Digital Currency Global Initiative (DCGI) which is a joint collaboration between the ITU and the Future of Digital Currency Initiative at Stanford University. I’ll be part of a “fireside chat” on the DCGI’s digital currency ontology work. [Register here]

Central Bank Digital Currency Workshop, Hosted by the CBDC Think Tank 

The CBDC Think Tank (CBDCTT)  is hosting an in-person CBDC Workshop in Washington DC on February 24. It’s an intensive and hands-on CBDC course for central bank leadership and staff that are looking to understand and position for CBDCs. The workshop is a mix of lectures from CBDC experts and hands-on exercises. Certification of completion will be provided by the CBDCTT. Note that it is open only to staff from the official sector, such as central bank and finance ministry staff! [Register here]

Kiffmeister’s #Fintech Daily Digest (01/21/2022)

~ kiffmeister

Binance kept weak money-laundering checks even as it promised tougher compliance

According to a Reuters report, Binance kept weak know-your-customer (KYC) checks and did not properly cooperate with authorities, despite its public promises about compliance. The report was based on interviews with dozens of former employees of Binance, advisers and business partners, as well as the review of hundreds of documents. According to the report, Binance has refused to answer regulators and partners’ questions about its operations, and ignored its own compliance advisor recommendations to avoid customers in countries with money laundering risk. [Read more]

SEC Rejects First Trust Advisors and SkyBridge Bitcoin ETF

The US Securities and Exchange Commission (SEC) rejected an application for a spot market Bitcoin exchange-traded fund (ETF) from First Trust Advisors and SkyBridge. The SEC said it didn’t meet “the requirement that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest’.” The SEC has yet to approve a spot market crypto ETF on concerns over potential price manipulation. [Read more]

When Bigtechs and Fintechs Own Banks – Benefits, Risks and Policy Options

The Bank for International Settlements (BIS) published a paper that assesses the merits of extending a banking licence to tech firms and explores their regulatory landscape in seven jurisdictions. To ascertain their risk characteristics, it categorises the universe of tech firms that provide financial services into three groups: standalone Fintechs, large diversified Fintechs and Bigtechs. Bigtechs and large diversified Fintechs pose the most significant supervisory concerns, with the former requiring more onerous prudential measures than the latter. To mitigate their perceived risks, authorities impose various quantitative and qualitative requirements during authorisation, but supervision and enforcement may pose formidable challenges. In this context, the paper outlines a range of policy options that are mapped to the risk profile of tech firms seeking a banking licence. [Read more]

ASIC embarks on regtech innovation initiative into poor market disclosure

The Australian Securities and Investments Commission (ASIC) will be working with five regulatory technology (regtech) entities for the Business Research and Innovation Initiative (BRII) Regulatory Technology (Regtech) Round. ASIC’s challenge in this latest round is to explore the potential of using technology to help identify and assess poor market disclosure by listed companies. [Read more]

The U.S. Dollar in the Age of Digital Transformation (re-posted for those who missed it yesterday)

The US Federal Reserve Board published a discussion paper that examines the pros and cons of a potential U.S. central bank digital currency (CBDC).  The paper summarizes the current state of the domestic payments system and discusses the different types of digital payment methods and assets that have emerged in recent years, including stablecoins and other cryptocurrencies. It concludes by examining the potential benefits and risks of a CBDC, and identifies specific policy considerations.

While a CBDC could provide a safe, digital payment option for households and businesses as the payments system continues to evolve, and may result in faster payment options between countries, there may also be downsides. They include how to ensure a CBDC would preserve monetary and financial stability as well as complement existing means of payment. Other key policy considerations include how to preserve the privacy of citizens and maintain the ability to combat illicit finance. [Read more]

To get these updates sent to your inbox, please sign up here. Also, for those interested in intra-day updates and news that didn’t make the Daily Digest cut, please check out my Diigo fintech bookmarks: https://www.diigo.com/user/kiffmeister/Fintech.

DC3 Conference – From Cryptocurrencies to CBDCs

The International Telecommunication Union (ITU) is organizing the “DC3 Conference – From Cryptocurrencies to CBDCs” scheduled to take place virtually from January 25 – 27, 2022. The Digital Currency Conference is organized by the Digital Currency Global Initiative (DCGI) which is a joint collaboration between the ITU and the Future of Digital Currency Initiative at Stanford University. I’ll be part of a “fireside chat” on the DCGI’s digital currency ontology work. [Register here]

Central Bank Digital Currency Workshop, Hosted by the CBDC Think Tank 

The CBDC Think Tank (CBDCTT)  is hosting an in-person CBDC Workshop in Washington DC on February 24. It’s an intensive and hands-on CBDC course for central bank leadership and staff that are looking to understand and position for CBDCs. The workshop is a mix of lectures from CBDC experts and hands-on exercises. Certification of completion will be provided by the CBDCTT. Note that it is open only to staff from the official sector, such as central bank and finance ministry staff! [Register here]

Kiffmeister’s #Fintech Daily Digest (01/20/2022)

~ kiffmeister

FYI yesterday I did some minor updates to my tabulation of retail central bank digital currency (CBDC) explorers: https://kiffmeister.blogspot.com/2019/12/countries-where-retail-cbdc-is-being.html.

The U.S. Dollar in the Age of Digital Transformation

The US Federal Reserve Board published a discussion paper that examines the pros and cons of a potential U.S. central bank digital currency (CBDC).  The paper summarizes the current state of the domestic payments system and discusses the different types of digital payment methods and assets that have emerged in recent years, including stablecoins and other cryptocurrencies. It concludes by examining the potential benefits and risks of a CBDC, and identifies specific policy considerations.

While a CBDC could provide a safe, digital payment option for households and businesses as the payments system continues to evolve, and may result in faster payment options between countries, there may also be downsides. They include how to ensure a CBDC would preserve monetary and financial stability as well as complement existing means of payment. Other key policy considerations include how to preserve the privacy of citizens and maintain the ability to combat illicit finance. [Read more]

FDIC-Backed Banks Send Stablecoins in USDF First

NBH Bank and New York Community Bank have conducted the first USDF transaction over the Provenance Blockchain. NBH Bank minted the newly introduced stablecoin and sent it to a customer of New York Community Bank as part of a test run. USDF is a stablecoin offered by the USDF Consortium, a group of FDIC-backed banks that announced its formation last week. [Read more]

Russia proposes ban on use and mining of cryptocurrencies

A Bank of Russia consultation paper has called for a ban on issuing, trading, investing in and mining cryptocurrency. The central bank proposed preventing financial institutions from carrying out any operations with cryptocurrencies and said mechanisms should be developed to block transactions aimed at buying or selling cryptocurrencies for fiat currencies. [Read more]

Crypto.com Confirms Security Breach of Customer Accounts

483 Crypto.com customer accounts were hacked during the week of January 17, 2022. A total of 4,836.26 ETH, 443.93 BTC and about $66,200 in other cryptocurrencies  were siphoned off from its platform. The exchange initially halted withdrawals for around 14-hours after noticing suspicious activity with some of its accounts and committed to reimburse customers for any lost funds. [Read more]

To get these updates sent to your inbox, please sign up here. Also, for those interested in intra-day updates and news that didn’t make the Daily Digest cut, please check out my Diigo fintech bookmarks: https://www.diigo.com/user/kiffmeister/Fintech.

Central Bank Digital Currency Workshop, hosted by the CBDC Think Tank 

The CBDC Think Tank (CBDCTT)  is hosting an in-person CBDC Workshop in Washington DC on February 24. It’s an intensive and hands-on CBDC course for central bank leadership and staff that are looking to understand and position for CBDCs. The workshop is a mix of lectures from CBDC experts and hands-on exercises. Certification of completion will be provided by the CBDCTT. Note that it is open only to staff from the official sector, such as central bank and finance ministry staff! [Register here]

DC3 Conference – From Cryptocurrencies to CBDCs

The International Telecommunication Union (ITU) is organizing the “DC3 Conference – From Cryptocurrencies to CBDCs” scheduled to take place virtually from January 25 – 27, 2022. The Digital Currency Conference is organized by the Digital Currency Global Initiative (DCGI) which is a joint collaboration between the ITU and the Future of Digital Currency Initiative at Stanford University. I’ll be part of a “fireside chat” on the DCGI’s digital currency ontology work. [Register here]