Kiffmeister’s #Fintech Daily Digest (20220723)

Central African regional central bank seeks common digital currency

The Bank of Central African States has reportedly been urged by its board to introduce a common digital currency for its six member states (Cameroon, Chad, the Republic of Congo, Gabon, Equatorial Guinea and the Central African Republic). The board made the call in an emailed statement signed by its head, Herve Ndoba, on July 21 following a meeting in Cameroon’s economic capital, Douala. The proposal comes after the central bank’s strong opposition for the Central African Republic’s adoption of Bitcoin as legal tender this year. [Read more at Bloomberg]

I’m skeptical about this story because I’ve perused the French Africa press, and the only concrete evidence I’ve come across pertains to a “resolution” from the Union Monetaire de L’Afrique Centrale on the need for regionally consistent crypto regulations. [See it here] Has anyone out there seen anything more concrete?

Crypto Woes Spread as Celsius, Babel Links Hit Another Firm

Asian-based crypto exchange Zipmex has halted withdrawals as the fallout from a series of defaults spreads further throughout the digital-assets industry. As part of its story on Zipmex, Bloomberg produced a tabulation of crypto platforms with liquidity problems. [Read more at Bloomberg]

What factors determine central bank interest in CBDC?

This paper by Bank of Indonesia staff attempts to explain the differences in central bank digital currency (CBDC) interest across emerging and advanced market countries. Based on a cross-country dataset, it shows that wholesale CBDC work is more advanced in countries with developed financial markets and greater cross-border transactions. Retail CBDC work is more advanced in countries with lower financial inclusion and a large informal economy. It further shows that different factors affect retail CBDC adoption across emerging and advanced countries. [Read more at the Bulletin of Economics and Banking]

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]