Kiffmeister’s #Fintech Daily Digest (20220507)

Digital Money and Central Bank Operations

An important question for central banks is the extent to which digital payment innovations upend the role of and implementation of monetary policy. This International Monetary Fund (IMF) paper focuses on the interest rate channel, and whether digital currency, including central bank digital currency (CBDC), will change monetary policy and central bank operations. [Read more]

EIOPA reacts to stakeholders’ views on blockchain in insurance

The European Insurance and Occupation Pensions Authority (EIOPA) published a feedback statement on blockchain and smart contracts in insurance. The document provides a high-level summary of the responses received from stakeholders during a public consultation on the topic as well as EIOPA’s reactions to them. Insurers see potential in blockchain and are exploring possible use cases across the insurance value chain to streamline business and better serve customers, but the technology’s deployment is still at an early stage. [Read more]

The Argentine central bank discourages the offer of crypto-assets services [and a fake news alert regarding the IMF role in this move]

The Central Bank of the Argentine Republic (BCRA) has prohibited regulated financial entities from carrying out or facilitating client crypto-asset transactions. A number of news services (e.g., here and here) are erroneously implying that this move was spurred by conditions attached to a $42 million loan from the International Monetary Fund (IMF) announced on March 25, 2020. However the loan announcement makes no mention of crypto-assets. I suspect that the authors are picking up the crypto-asset discussion in the Article IV staff report published at the same time, that merely describes the Argentine government’s efforts to discourage crypto-asset use. But the report doesn’t indicate whether IMF staff or board members agree or disagree with the efforts, and the loan is certainly not tied to them. [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]