Kiffmeister’s #Fintech Daily Digest (20220907)

Russia’s Finance Ministry is working on stablecoin platforms to avoid cross-border dollar settlement

Russia’s finance ministry is reportedly looking to stablecoins to avoid international payment rails denominated in the U.S. dollar and euro. “The stablecoins can be tied to some generally accepted instrument like, for example, gold, whose value is understood and appreciable for all parties… It will require additional regulation, and the ministry is only considering approaches to it, there are no ready-made solutions.” [Read more at Tass]

Exiles Put Crypto, Fed Funds at Center of Myanmar Finance Plan

Myanmar exiles ousted in a 2021 coup are pressing the US Federal Reserve to endorse their bid to use $1 billion in funds frozen by the US to back a digital currency and a plan to establish a new central bank. If the exiles can get US support, they would then seek to establish a new central bank that could issue the digital currency to help support the opposition’s “revolutionary efforts.” [Read more at Bloomberg]

Ethereum’s Bellatrix upgrade now live despite concerns

The Bellatrix upgrade preparing Ethereum for the Merge was successfully completed on September 6, 2022. This upgrade brought Ethereum’s consensus layer, the Beacon Chain, into a ready state for the Merge which is slated to occur around September 15 once the final (“Paris”) upgrade goes live. Some concerns were raised over an almost one in ten missed block rate across the last 600 slots. This could be due to some validators being not fully upgraded to the latest software, which could leave them unable participate in the post-merge proof-of-stake network. [Read more on Decrypt]

Liquidity bridges across central banks for cross-border payments

The Committee on Payments and Market Infrastructures (CPMI) published a report  on central bank liquidity bridges –  short-term intraday liquidity arrangement set up between two or more central banks. In a liquidity bridge, collateral held by a payment service provider (PSP) with one central bank can be used by a PSP’s related entity in another jurisdiction to get intraday liquidity from that other central bank. Liquidity bridges may help reduce credit and settlement risks to PSPs arising from FX transactions and reduce intraday settlement risk across borders. [Read more at the CPMI]

Discounted tickets available for CBDC Think Tank masterclass

The CBDC Think Tank, in partnership with the IMF and George Washington University, is hosting a full-day in-person CBDC Masterclass on October 12 in Washington DC for “official sector” staff only. The sessions are designed as instructional deep dives with full presentations and Q&A components.  Ticket prices start at $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 (also in-person) 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.

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