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.