Kiffmeister’s #Fintech Daily Digest (20220506)

The CBDCTracker.org database was updated to include updates from the central banks of Brazil, Curaçao & Sint Maarten, Honduras, Iran, Japan, Malaysia, Mexico, Rwanda, Sudan, and Trinidad & Tobago. [Read more]

Gaining momentum – Results of the 2021 BIS survey on central bank digital currencies

90% of the 81 central banks surveyed by the Bank for International Settlements (BIS) are exploring central bank digital currency (CBDC). Compared with last year’s survey, the share of  central banks currently developing a CBDC or running a pilot almost doubled from 14% to 26%, and 62% are conducting experiments or proofs-of-concept. The results show that the work on retail CBDCs is at a more advanced stage than the work on wholesale CBDCs. Almost one fifth of central banks are developing or testing a retail CBDC, which is twice the share of central banks building or piloting a wholesale CBDC, which is increasingly driven by reasons related to cross-border payments efficiency. 68% of the surveyed central banks consider that they are likely to or might possibly issue a retail CBDC in either the short or medium term. [Read more]

The design of a data governance system

A BIS paper proposed a data governance system that restores control to the parties generating the data, by requiring consent prior to their use by service providers. The system should be open, with consent that is revocable, granular, auditable, and with notice in a secure environment. Conditions also include purpose and use limitation, data minimization, and retention restriction. Trust in the system and widespread adoption are enhanced by mandating specialized data fiduciaries. The experience with India’s Data Empowerment Protection Architecture (DEPA) suggests that such a system can operate at scale with low transaction costs. [Read more]

Upcoming events I’m affiliated with:

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]

The CBDC Think Tank is hosting a CBDC Papers Lecture Series on June 17 and 24, each session starting at 7am EST and running for 3 hours. [View list of papers and register here]