Kiffmeister’s #Fintech Daily Digest (20220802)

Taking digital currencies offline

The IMF published an article of mine on offline central bank digital currency (CBDC) in their Finance & Development magazine. [Read more here]

China’s central bank to expand digital yuan pilot program

The People’s Bank of China (PBoC) has listed the “orderly expansion of the scope of the digital yuan pilot” as one of its key tasks in the second half of the year, according to the central bank’s work plan. [Read more at the PBOC]

Towards the holy grail of cross-border payments

The European Central Bank (ECB) published a paper that describes current visions of how to eventually find the holy grail of immediate, cheap, universal cross-border payments settled in a secure settlement medium. It focuses on six potential solutions; (i) modernized correspondent banking; (ii) emerging cross-border FinTech solutions; (iii) Bitcoin; (iv) global stablecoins; (v) interlinked instant payment systems with FX conversion layer; (vi) interlinked CBDC with FX conversion layer. For each, settlement mechanics are explained, and an assessment is provided on its potential to be the holy grail of cross-border payments. Several solutions are suitable for improving cross-border payments significantly, and some could even be the holy grail. [Read more at the ECB]

Crypto collapse: 3AC’s Grayscale two-step — and where in the world are Zhu and Davies?

Amy Castor and David Gerard have published another excellent crypto crash update, including how bankruptcy works and how administrative costs suck up hundreds of millions of dollars before creditors see a penny, why Tether may be required to return $840 million in assets to Celsius, and the FDIC and the Feds cease and desist statement to Voyager. [Read on David’s blog]

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]