Kiffmeister’s #Fintech Daily Digest (20220705)

FYI I’ve updated my tabulation of retail central bank digital currency (CBDC) explorers. Mostly updated links and some shuffling among categories.

ECCB launches DCash in Anguilla

The Eastern Caribbean Central Bank (ECCB) DCash central bank digital currency (CBDC) pilot expanded to Anguilla, and now the digital version of the EC currency is legal tender in all eight ECCB member countries. Liberty Co-operative Credit Union (LCCU) is the first financial institution in Anguilla to join the Pilot and will begin processing DCash applications for both merchant and consumer wallets for their customers. Citizens and residents who are not customers of LCCU may obtain a DCash value-based wallet by signing up through the app.  [Read more]

According to the just-released ECCB Annual Report, As at end-March, the value of DCash in circulation amounted $2.27 million, or 0.16% of the $1,407.14 million currency in circulation. More than 20 of the region’s financial institutions and 11 agencies, both groups being key channels for customer onboarding, are now participating in the pilot. Also there has seen steady increase in the merchant base. The second phase of the pilot will see the introduction of government-to-consumer (G2C) payments and an e-commerce functionality to support wider use of DCash. [Read more]

Big tech interdependencies – a key policy blind spot

A BIS paper assesses the interdependencies inherent in big tech business models based on publicly available information on Alibaba, Amazon, Grab, Jumia, Mercado Libre and Rakuten. Big tech interdependencies come with specific risks, in particular to operational resilience, and may require the development of specific entity-based rules for big tech operations in the financial sector. The paper outlines the regulatory implications of how big techs provide financial services and the tools financial authorities have at their disposal now to address related risks. [Read more]

The decentralized finance (DeFi) dead pool

Last week I started a list of articles about the DeFi dead and dying with a few written by David Gerard (“Attack of the 50 Foot Blockchain“) and Amy Castor (see below). I’ve added a few more from others, including some collateral damage:

Upcoming events I’m affiliated with:

The CBDC Think Tank, in partnership with the International Monetary Fund and George Washington University, is hosting a full-day in-person CBDC Masterclass on October 12 in Washington DC. The sessions are designed as instructional deep dives with full presentations and Q&A components.  [Register here]