Kiffmeister’s #Fintech Daily Digest (02/25/2022)*

Sorry for the delay, but I was attending (and participating in) the excellent in-person Currency Research digital currency conference in Washington DC. (That’s me, second from the left in the photo below!)

It’s Time to Abandon the “Token vs. Account” Discussion

Celo’s Ezechiel Copic tears down the bogus distinction between “account-based” and “token-based” digital currency (DC), where ownership of the former is tied to identity, and the latter requires verifying the validity of the object used to pay. The distinction makes great sense in the physical currency world, but breaks down in the DC world, where blockchain-based DCs muddy the waters. A NY Fed article back in 2020 made similar points, but the bogus distinction persists! [Read more]

Digital Euro Consultancy Request for Proposals

The European Central Bank published a request for proposals for digital euro design and business model consultancy services. A pre-qualification phase will select 10 candidates to be invited to tender, after which five successful bidders will be awarded with a framework agreement. The total value of the contracts, excluding value-added taxes is EUR20,000,000. [Read more]

Ukrainian central bank suspends electronic cash transfers

The National Bank of Ukraine ordered electronic money (e-money) issuers to suspend the issuance of e-money and the replenishment of electronic wallets with e-money, as Russian forces lay siege across Ukraine. Other measures included suspending the foreign exchange market, limiting cash withdrawals and prohibiting the issuance of foreign currency from retail bank accounts. This has led to many Ukrainians reportedly turning to cryptocurrencies. [Read more]

Avanti Is Now Custodia, Announces Countdown to Launch in Q2

Wyoming-based Avanti Financial Group has changed its name to Custodia Bank, and announced plans to launch in Q2 with U.S. dollar deposit accounts for business customers, initially providing ACH and Fedwire services. Its post-launch roadmap includes digital asset custody, Avit™ (a payment instrument akin to a digital cashier’s check) and prime services, facilitated by customer-facing APIs to enable the programmability of payments by customers. [Read more]

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