Kiffmeister’s #Fintech Daily Digest (20220803)

Japan abandons CBDC project (fake news alert)

There are misleading stories circulating that the Bank of Japan has shut down its central bank digital currency (CBDC) project. They seem to be triggered by an Asia Times story that rehashed the July 5, 2022 report from the BoJ’s Liaison and Coordination Committee on Central Bank Digital Currency, which reiterated its October 2020 position that “while the Bank of Japan currently has no plans to issue CBDC, from the viewpoint of ensuring the stability and efficiency of the overall payment and settlement systems, the Bank considers it important to prepare thoroughly to respond to changes in circumstances in an appropriate manner.” So the project lives on! [Read more at the BoJ]

ASX CHESS Replacement Schedule Delay Independent Review

The Australian Securities Exchange (ASX) has delayed its overhaul of its Clearing House Electronic Subregister System (CHESS) share trading software by up to 20 months, citing problems achieving “scalability and resilience”. The CHESS software enables ASX’s registry to manage settlement of transactions, and the exchange has strived since 2017 to replace it with Digital Asset‘s blockchain-based technology in a bid to cut costs. ASX has also engaged Accenture to provide an independent review. [Read more at the ASX]

RBI interoperable distributed ledger technology proof of concept

The Reserve Bank of India Innovation Hub (RBIH) conducted a successful interoperable distributed ledger technology (DLT) platform proof-of-concept exercise with 11 banks, DLT fabric partners, DLT application layer partners, and fintech startups. Inland Letter of Credit was chosen as the use case, because its end-to-end flows is paper intensive, time consuming, requires human intervention at multiple level, and prone to fraud. DLT allowed stakeholders to digitally share accurate and reliable trade information in real-time. Smart contracts supported by DLT, allowed for automated execution of payments on meeting pre-set conditions of the contract. [Read more at the RBIH]

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]