Kiffmeister’s #Fintech Daily Digest (20220527)

India’s Central Bank Digital Currency to be Introduced in Phased Manner

The Reserve Bank of India (RBI) is continuing its work on central bank digital currency (CBDC).  According to its latest annual report “the design of CBDC needs to be in conformity with the stated objectives of monetary policy, financial stability and efficient operations of currency and payment systems… The RBI proposes to adopt a graded approach to introduction of CBDC, going step by step through stages of a proof of concept (PoC), pilots and the launch. [Read more (see page 12)]

Bank of Japan CBDC Experiments: Results and Findings from PoC Phase 1

The Bank of Japan published an English version of the April 13 paper on the results and findings of the first phase of its CBDC PoC work. [Download here]

JPMorgan Finds New Use for Blockchain in Trading and Lending

“JPMorgan Chase & Co is using blockchain for collateral settlements. The bank’s first such transaction came on May 20, when two of its entities transferred the token representation of BlackRock money market fund shares as collateral on its private blockchain. The effort will allow investors to pledge a wider range of assets as collateral and use them outside of market operating hours… In the coming months, the bank plans to expand tokenized collaterals to include equities, fixed income and other asset types.” [Read more]

Apple Pay iPhone-to-iPhone Tap to Pay Launches at Apple Stores

“Apple will reportedly begin rolling out its new Tap to Pay feature for the public.  The feature was unveiled in February and lets iPhones that were compatible take payments through Apple Pay, contactless credit and debit, or other digital wallets. The feature will let small businesses and merchants take contactless payments via supported iOS apps. The merchant at checkout will prompt the customer to hold their device, either an iPhone, Apple Watch or contactless credit or debit card, near the merchant’s iPhone, and the payment will be completed.” [Read more]

Crypto is changing how humanitarian agencies deliver aid and services

“The primary use case for cryptocurrency in most wealthy countries is acquiring it and holding it, trading it, or using it in various other ways to make more money. In the developing world, where access to financial and banking systems is limited or nonexistent, innovative humanitarian organizations are piloting micro-blockchain ecosystems.” [Read more]

Upcoming events I’m affiliated with:

The CBDC Think Tank is hosting a CBDC Papers Lecture Series on June 17 and 24 starting at 7am EST and running for 4 hours each day. [View list of papers and register here]