Kiffmeister’s #Fintech Daily Digest (20220426)

Deciding on a Digital Dollar: The Necessary Steps for Canada

I spoke at a workshop hosted by the Centre for International Governance Innovation (CIGI) and Bennett Jones on the need for, and design of, a digital Canadian central bank digital currency (CBDC) or “digital loonie”. It focused on three areas: what can Canada learn from CBDC first movers (that was the session I participated in), what are the early steps necessary to prepare and design a digital loonie, and what will be required legally for a CBDC and what are the legal pillars on which that system could be based. It was run under Chatham House Rule but a summary report will be published within the next few months. [Read more]

Are Cryptocurrencies Currencies? Bitcoin as Legal Tender in El Salvador

This US National Bureau of Economic Research (NBER) paper reports the results of a representative national face-to-face survey of bitcoin’s usage in El Salvador, since the government made bitcoin legal tender and launched its “Chivo” bitcoin wallet, giving major incentives to download it. The results show that, despite the government’s big push and a large fraction of people downloading the Chivo wallet, usage of bitcoin for everyday transactions is low and is concentrated among the banked, educated, young, and male population. 60% did not even bother to download the wallet, and over 60% of those that downloaded it ended up abandoning it after spending the $30 bitcoin airdrop. [Read more]

The Central Bank of West African States (BCEAO) sets up FinTech Knowledge and Monitoring Office

The Central Bank of West African States (BCEAO) sets up FinTech Knowledge and Monitoring Office (BCSF) to promote and support the development of startups offering financial services in West Africa. The BCSF will organize discussions between the central bank and fintech startups, collect and process information or interview requests and handle other tasks related to technological innovation and financial sector regulation. The BCEAO serves the eight west African countries of the West African Economic and Monetary Union (Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo) that all share a common currency (the euro-pegged CFA Franc). [Read more]

Upcoming events I’m affiliated with:

The CBDC Think Tank is hosting several webinars over the next month:

Satoshi Capital Advisors is hosting a virtual workshop on wholesale CBDC, stablecoins and digital capital markets on May 24 (starting at 08:00 EST). [Register here with the passcode: CBDC]