Month: August 2022
Kiffmeister’s #Fintech Daily Digest (20220831)
Ava Labs CEO denies CryptoLeaks’ claims as ‘conspiracy theory nonsense’
Ava Labs CEO Emin Gün Sirer has dismissed allegations from CryptoLeaks that the company formed a “secret pact” with U.S. law firm Roche Freedman LLP to use the American legal system “gangster style” to “attack and harm crypto organizations [i.e., Ava Labs competitors].” Ava Labs is the firm behind Avalanche (AVAX), an Ethereum (ETH) rival in the decentralized finance (DeFi) and customized blockchain space. Roche Freedman LLP was recently involved in separate high-profile lawsuits against Solana Labs and Binance, claiming that the firms were engaging in unlawful activities. [Read more at CoinTelegraph]
The Digital Dollar Project Launches Technical CBDC Sandbox Program
The Digital Dollar Project (DPP) launched its central bank digital currency (CBDC) Technical Sandbox Program, with the help of initial participants Digital Asset, EMTECH, Knox Networks, and Ripple. It will serve as a collaborative space for the DDP participants and financial service providers, offering a neutral environment for the evaluation of technological, business, and policy approaches to CBDCs. It is slated to begin in early October with the inaugural cohort focused on cross-border payments. [Read more at the DPP]
Klarna losses quadruple as costs rise
“Losses at Swedish [buy now, pay later] payments provider Klarna reported a net loss of SKr6.2 billion ($581 million) for the first half of 2022, compared with SKr1.4 billion a year earlier. (Buy now, pay later services allow consumers to defer or divide payments into instalments.) Klarna attributed the deepening losses to higher employee costs, investments in integrating newly acquired Swedish price comparison service PriceRunner and rising credit losses, reflecting the greater difficulty of underwriting new customers with limited credit histories.” [Read more at the Financial Times]
Discounted tickets available for CBDC Think Tank masterclass
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. Ticket prices are as low as $99 and you can save 30% by entering KIFFMEISTER where the registration page asks for a discount code. [Register here]
Also, the CBDC Think Tank, in partnership with Georgetown University and the DC FinTech Week, is hosting a FREE Digital Currency Lecture Series, a set of digital currency lightning talks delivered by subject matter experts, on October 14 in Washington DC. [Request an invite here]
Kiffmeister’s Global Central Bank Digital Currency Monthly Monitor
Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So for any of you out there who work for a central bank, ministry of finance or international financial institution who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.
Kiffmeister’s #Fintech Daily Digest (20220830)
Nigerian Central Bank Slashes CBDC Transaction Fees by 50%
The Central Bank of Nigeria is reportedly slashing the service fees incurred by individuals and merchants using the eNaira central bank digital currency (CBDC) platform by 50%. [Read more at the Daily Trust]
Banco Central do Brasil publishes list of projects selected for LIFT 2022
The Banco Central do Brasil (BCB) announced the short list of eight projects selected in the 2022 Laboratory of Financial and Technological (LIFT). One of them is a proposal to convert a stablecoin on the Celo blockchain into Real Digital, studying the interoperability between the public blockchain that runs on the EVM (Ethereum Virtual Machine) and the central bank digital currency (CBDC), in addition to the possible interoperability with Pix. [Read more at the BCB]
Federal Reserve updates FedNow Service timing to mid-2023
The Federal Reserve Banks have narrowed the timing of the FedNow Service launch to mid-year 2023, specifically targeting a production rollout of the service in the May to July timeframe. This further defines the previously communicated 2023 launch window for the anticipated instant payments service and comes as the FedNow Pilot Program prepares to enter technical testing for the service starting in September. [Read more at the Fed]
Indonesia and Singapore to Pursue Cross-border QR Code Payments Connectivity
Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) have commenced work on a cross-border QR payment linkage between Indonesia and Singapore as part of the ASEAN-wide payments connectivity effort. This linkage, which is targeted to be launched in the second half of 2023, will allow users to make instant, secure, and efficient retail payments by scanning the QRIS (Quick Response Code Indonesian Standard) or NETS QR codes displayed by merchants. [Read more at the MAS]
FBI: Crooks are using these DeFi flaws to steal your money
After a run of thefts from decentralized finance (DeFI) platforms, the US Federal Bureau of Investigations (FBI) has warned that criminals are increasingly exploiting bugs in these platforms to steal investors’ cryptocurrency. [Read more at the FBI]
Discounted tickets available for CBDC Think Tank masterclass
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. Ticket prices are as low as $99 and you can save 30% by entering KIFFMEISTER where the registration page asks for a discount code. [Register here]
Also, the CBDC Think Tank, in partnership with Georgetown University and the DC FinTech Week, is hosting a FREE Digital Currency Lecture Series, a set of digital currency lightning talks delivered by subject matter experts, on October 14 in Washington DC. [Request an invite here]
Kiffmeister’s Global Central Bank Digital Currency Monthly Monitor
Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So for any of you out there who work for a central bank, ministry of finance or international financial institution who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.
Kiffmeister’s #Fintech Daily Digest (20220828)
More Than Half Of All Bitcoin Trades Are Fake
One of the most common criticisms of bitcoin is pervasive wash trading (a form of fake volume) and poor surveillance across exchanges. According to research by Forbes, more than half of all reported trading volume across 157 crypto exchanges studied is likely to be fake or non-economic. For example, global daily bitcoin volume was $128 billion on June 14, 51% less than the $262 billion one would get by taking the sum of self-reported volume from multiple sources. [Read more at Forbes]
SEC delays VanEck’s third Bitcoin spot ETF application
The U.S. Securities and Exchange Commission (SEC) has pushed back a decision on the third and latest application for VanEck’s Bitcoin spot exchange-traded fund (ETF) from August 27, 2022 to October 11. VanEck’s first application lodged with the SEC in 2017, which was eventually denied. VanEck is now arguing that American investors were gaining exposure to Bitcoin through Canadian Bitcoin spot ETFs. [Read more at Coin Telegraph]
Post-Quantum Cryptography Scheme Is Cracked on a Laptop
On July 5, 2022, the U.S. government’s National Institute of Standards and Technology (NIST) selected four protocols that, with some revision, will be deployed as a cryptographic quantum shield, plus four additional candidates still under consideration. However, almost immediately, a pair of researchers broke one of those candidates in an hour on a laptop. [Read more at Quanta]
Cash, COVID-19 and the Prospects for a Canadian Digital Dollar
The Bank of Canada published a paper that provides an analysis of cash trends in Canada before and during the COVID-19 pandemic. It finds that cash demand has been strong pre-pandemic and increased sharply during the pandemic. While cash use fell initially due to the decreased number of in-person shopping opportunities, it recovered as containment measures eased. The paper concludes that the long-term trend away from cash use as a method of payment could lead to a decline of merchant acceptance over time and erode the broader demand for cash more generally, which could warrant the Bank of Canada issuing a digital dollar. [Read more at the Bank of Canada]
Discounted tickets available for CBDC Think Tank masterclass
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. Ticket prices are as low as $99 and you can save 30% by entering KIFFMEISTER where the registration page asks for a discount code. [Register here]
Also, the CBDC Think Tank, in partnership with Georgetown University and the DC FinTech Week, is hosting a FREE Digital Currency Lecture Series, a set of digital currency lightning talks delivered by subject matter experts, on October 14 in Washington DC. [Request an invite here]
Kiffmeister’s Global Central Bank Digital Currency Monthly Monitor
Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So for any of you out there who work for a central bank, ministry of finance or international financial institution who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.
Kiffmeister’s #Fintech Daily Digest (20220826)
Reserve Bank Australia says a live CBDC likely to be wholesale
Members of the Reserve Bank of Australia (RBA) Payment Systems Board discussed the increasing interest in central bank digital currency (CBDC) internationally and in Australia. Many see an increased likelihood of issuing some form of CBDC in the future, especially to support wholesale transactions. [Read more at the RBA]
China Introduces Digital Yuan Payments in Ningbo Subway, Guangzhou Buses
Ningbo Rail Transit, the operator of the subway system in the city of Ningbo in the eastern Chinese province of Zhejiang, has reportedly launched payments in digital yuan at 125 stations. Also, bus riders in Guangzhou will be able to buy tickets with digital yuan. They will be able to use their e-CNY wallets on 10 bus lines. [Read more at Bitcoin.com]
China’s Digital Yuan App Can Now Link to Users’ Bank Accounts
The digital yuan payment app reportedly can now be linked to bank accounts to ensure that funds in users’ e-CNY wallets never run dry. The app can automatically draw amounts from a linked account at a commercial bank when the e-CNY wallet’s balance is not enough. Users also have the option not to link the app to a bank account. [Read more at Yicai Global]
Indonesian central bank provides update on CBDC plans
Perry Warjiyo, Governor of the Bank Indonesia (BI), provided an update on the central Banks’s CBDC plans. It sounds like the BI is leaning towards a distributed ledger technology (DLT) based platform, but it is undecided as to whther it will be a retail or wholesale digital currency. It will build in interoperability to open up the possibility of cross-border payments, particularly in the ASEAN+5 region, where there is already cooperation with Thailand and Malaysia through the support for the implementation of QR Cross Border and Local Currency Settlement (LCS). [Read more at the BI]
A joint committee of the U.S. Uniform Law Commission (ULC) and the American Law Institute (ALI) finalized a significant and wide-ranging amendment to the Uniform Commercial Code (UCC) that addresses the quirks and nuances of digital asset transactions and crypto-as-collateral secured financings. The amendments include a completely new Article 12 that is devoted to defining various digital asset classes and setting ground rules for crypto-backed secured financings. New Article 12 will dovetail with a series of amendments to existing Article 9 (secured transactions) and Article 3 (negotiable instruments). [Read more at JD Supra]
Discounted tickets available for CBDC Think Tank masterclass
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. Ticket prices are as low as $99 and you can save 30% by entering KIFFMEISTER where the registration page asks for a discount code. [Register here]
Also, the CBDC Think Tank, in partnership with Georgetown University and the DC FinTech Week, is hosting a FREE Digital Currency Lecture Series, a set of digital currency lightning talks delivered by subject matter experts, on October 14 in Washington DC. [Request an invite here]
Kiffmeister’s Global Central Bank Digital Currency Monthly Monitor
Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So for any of you out there who work for a central bank, ministry of finance or international financial institution who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.
Kiffmeister’s #Fintech Daily Digest (20220823)
Africa’s first central bank e-currency is yet to have recurring users
Nigeria’s central bank believes its digital currency, the eNaira, has scored wins in the ten months since it was launched last October. The app has been downloaded 840,000 times, nearly a third of those converting to active wallets. But, the news should be taken with a healthy dose of skepticism as at an average of 1.35 transactions per active wallet, the eNaira has not convinced its users to do a lot with it. At N22,000 ($52), the currency’s average transaction value is way behind the regular naira: in 2021, Nigeria’s financial sector processed electronic payments at an average of N720,000 ($1,700) per transaction. [Read more at Quartz]
Discounted tickets available for CBDC Think Tank masterclass
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. Ticket prices are as low as $199 and you can save 30% by entering KIFFMEISTER where the registration page asks for a discount code. [Register here]
Also, the CBDC Think Tank, in partnership with Georgetown University and the DC FinTech Week, is hosting a FREE Digital Currency Lecture Series, a set of digital currency lightning talks delivered by subject matter experts, on October 14 in Washington DC. [Request an invite here]
Kiffmeister’s Global Central Bank Digital Currency Monthly Monitor
Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So for any of you out there who work for a central bank, ministry of finance or international financial institution who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.
Kiffmeister’s #Fintech Daily Digest (20220822)
FedNow is a better alternative to a CBDC, Federal Reserve governor says
Many of the challenges that Fedcoin fans say the central bank digital currency (CBDC) will solve will be addressed by the upcoming FedNow payment service, according to US Federal Reserve Governor Michelle Bowman. “FedNow will… allow consumers and businesses to make payments conveniently, in real time, on any day, and with immediate availability of funds for receivers. Our assessment of these benefits has not changed even as we consider whether a CBDC might fit into the future U.S. money and payments landscape… Completing and implementing FedNow is a high priority, and we expect it to be available by mid-2023.” [Read more at the Federal Reserve]
No Negative Rates, Less Need for Cash: Euros Return to the ECB
Demand for euro banknotes dwindled after the European Central Bank concluded an eight-year experiment with negative interest rates, suggesting households, businesses and banks are dissolving cash piles created to circumvent deposit charges. Banknotes in circulation started falling in the week through July 22, when policy makers raised rates. Since then, notes worth 16.8 billion euros ($17.1 billion) have left the system — the biggest drop since early 2020. [Read more at Bloomberg]
Minutes of the July 2022 Bank of England CBDC Engagement Forum
A Member of the Forum presented on potential business models for Payment Interface Providers (PIPs) in a CBDC ecosystem. The presentation set out that PIPs would likely undertake activities suggested in the Bank’s 2020 Discussion Paper on CBDC such as onboarding clients, conducting KYC (Know Your Costumer) and AML (Anti Money Laundering) checks, authenticating users and providing consumer protection and overlay services, among others. The presentation then laid out a set of costs that such a PIP would likely incur in offering those services. A second Member presented a view on how the private sector could collaborate with policymakers to deliver on some of the G7 Principles on CBDC (published in October 2021). [Read more at the Bank of England]
Discounted tickets available for CBDC Think Tank masterclass
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. Ticket prices are as low as $199 and you can save 30% by entering KIFFMEISTER where the registration page asks for a discount code. [Register here]
Also, the CBDC Think Tank, in partnership with Georgetown University and the DC FinTech Week, is hosting a FREE Digital Currency Lecture Series, a set of digital currency lightning talks delivered by subject matter experts, on October 14 in Washington DC. [Request an invite here]
Kiffmeister’s Global Central Bank Digital Currency Monthly Monitor
Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So for any of you out there who work for a central bank, ministry of finance or international financial institution who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.
Kiffmeister’s #Fintech Daily Digest (20220819)
Nigerians to access eNaira through USSD
The Central Bank of Nigeria Governor, Godwin Emefiele, has said that Nigerians will be able to transact on eNaira central bank digital currency (CBDC) wallets through the Unstructured Supplementary Service Data (USSD) code on mobile phones. Nigerians will only have to dial *997# from their phones to carry out transactions on their phones. [Read more at PunchNG.com] The Governor also reported that the eNaira has been used to carry out transactions worth 4 billion naira ($9.3 million) since it was introduced last October, and there are now about 270,000 active wallets. [Read more at CoinDesk]
New Auditor for Stablecoin Issuer Tether Confirms Slashing of Commercial Paper Holdings
BDO Italia has reaffirmed stablecoin issuer Tether’s consolidated reserves report that showed a 58% quarterly decline in commercial paper holdings to $8.5 billion as of June 30. Tether also confirmed its expectation that commercial papers will be down to $200 million by the end of August and zero before the end of the year. [Read more at CoinDesk]
Huobi explains what went wrong with HUSD after stablecoin is back on track
The fully reserve-backed HUSD stablecoin lost its peg on August 18, 2022, trading as low as $0.82, although it regained the $1.00 peg the next day. According to the HUSD team, the depeg was caused by a decision to close market maker accounts in some regions to comply with regulations. The time difference in banking hours had created a gap that led to a liquidity problem, leading to HUSD falling from its peg. [Read more on CoinTelegraph]
Guaranteeing freedom of payment choice: access to cash in the euro area
The European Central Bank (ECB) published a paper about the Eurosystem’s commitment to the principle that every individual in the euro area should be able to decide how to make day-to-day payments, regardless of their individual payment preference, geographical location or technological savviness. On the basis of the ECB’s most recent data, despite the gradual decline in cash transactions, cash is the most popular payment instrument among euro area citizens for day-to-day transactions at the point of sale or person-to-person payments. In addition, cash is used for savings and liquidity, especially in times of crisis or uncertainty. [Read more at the ECB]
E-Money tokens, tokenised money-market shares, and tokenised bank deposits
VOXEU/CEPR published a column that introduces the available stablecoins and discusses the possible impact of the forthcoming Markets in Crypto-Assets regulation by the European Commission on e-money issuers. The authors argue that the regulation may spur regulatory arbitrage in Europe and lead commercial banks to offer tokenised deposits on the decentralised ledger of a public blockchain. [Read more at VOXEU/CEPR]
Discounted tickets available for CBDC Think Tank masterclass
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. Ticket prices are as low as $199 and you can save 30% by entering KIFFMEISTER where the registration page asks for a discount code. [Register here]
Also, the CBDC Think Tank, in partnership with Georgetown University and the DC FinTech Week, is hosting a FREE Digital Currency Lecture Series, a set of digital currency lightning talks delivered by subject matter experts, on October 14 in Washington DC. [Request an invite here]
Kiffmeister’s Global Central Bank Digital Currency Monthly Monitor
Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So for any of you out there who work for a central bank, ministry of finance or international financial institution who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.
Kiffmeister’s #Fintech Daily Digest (20220818)
Colombia planning to launch digital currency to curb tax evasion
The Colombian government is reportedly planning to launch a digital currency to curb tax evasion and enhance the traceability of citizens’ transactions, according to Luis Carlos Reyes, head of Dirección de Impuestos y Aduanas Nacionales (DIAN), the country’s tax authority. Some news services are reporting this to be central bank digital currency (#CBDC) but no mention of central bank involvement has been made yet, so for now it looks more like a #GovCoin. [Read more at SEMANA]
Tether Swaps Accounting Firms, Says It Will Publish Monthly Attestation on Stablecoin Backing
Tether began working with BDO Italia, a top five ranked global independent public accounting firm, in July 2022 for its quarterly attestations. With this alignment, Tether will also focus on moving towards releasing attestations of the reserves backing its USDT stablecoin from a quarterly basis to monthly reports. [Read more at Tether]
Discounted tickets available for CBDC Think Tank masterclass
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. Ticket prices are as low as $199 and you can save 30% by entering KIFFMEISTER where the registration page asks for a discount code. [Register here]
Also, the CBDC Think Tank, in partnership with Georgetown University and the DC FinTech Week, is hosting a FREE Digital Currency Lecture Series, a set of digital currency lightning talks delivered by subject matter experts, on October 14 in Washington DC. [Request an invite here]
Kiffmeister’s Global Central Bank Digital Currency Monthly Monitor
Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So for any of you out there who work for a central bank, ministry of finance or international financial institution who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.
Kiffmeister’s #Fintech Daily Digest (20220817)
It’s a slow (in fact no) news day today but I’d like to draw attention to two upcoming events I’m involved with during the week of the October International Monetary Fund and World Bank Annual Meetings.
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. Ticket prices are as low as $199 and you can save 30% by entering KIFFMEISTER where the registration page asks for a discount code. [Register here]
Also, the CBDC Think Tank, in partnership with Georgetown University and the DC FinTech Week, is hosting a FREE Digital Currency Lecture Series, a set of digital currency lightning talks delivered by subject matter experts, on October 14 in Washington DC. [Request an invite here]
Kiffmeister’s Global Central Bank Digital Currency Monthly Monitor
Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So for any of you out there who work for a central bank, ministry of finance or international financial institution who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.