Kiffmeister’s #Fintech Daily Digest (20220916)

Another monthly update of CBDCTracker.org! Updates include:

🇦🇺 Australia starting research on retail central bank digital currency (CBDC)
🇨🇱 Chile expanding its CBDC research and opened a survey
🇭🇰 Hong Kong expanding its CBDC research
🇮🇩 Indonesia starting its CBDC research
🇳🇬 Nigeria providing usage data for their CBDC
🇷🇺 Russia proceeding to proof of concept (PoC) phase
🇹🇭 Thailand starting a CBDC pilot study
🇿🇼 Zimbabwe proceeding in its CBDC research phase

Framework for Responsible Development of Digital Assets

The U.S. Treasury published a report on the Future of Money and Payments that reviews the current U.S. system of money and payments, including developments in instant payments and stablecoins. It describes design choices for a potential U.S. central bank digital currency (CBDC) and recommends that the Fed advance work on it, in case one is determined to be in the national interest. Among other things, the report also encourages use of instant payment systems to support a more competitive, efficient, and inclusive U.S. payment landscape, the establishment of a federal framework for payments regulation to protect users and the financial system, while supporting responsible innovations in payments, and prioritizing efforts to improve cross-border payments, both to enhance payment system efficiency and protect national security. [Read more at the U.S. Treasury]

Banking May be Coming to Walmart’s US Stores

Walmart majority-backed One Finance will reportedly launch digital bank accounts for the retail giant’s 1.6 million US employees and legions of weekly shoppers. In coming weeks, it will start offering the accounts to thousands of workers and a small percentage of its online customers as part of an initial beta test of the new service. Eventually, One is hoping to offer a bevy of other products, from loans to investing, in an effort to become a one-stop shop for consumers’ financial needs. [Read more at Bloomberg]

ECB selects external companies for joint prototyping of user interfaces for a digital euro

The European Central Bank (ECB) will collaborate with five companies to develop potential user interfaces for the digital euro. The aim of this prototyping exercise is to test how well the technology behind a digital euro integrates with prototypes developed by companies. Simulated transactions will be initiated using the front-end prototypes developed by the five companies and processed through the Eurosystem’s interface and back-end infrastructure. The selected companies will each focus on one specific use case of a digital euro; peer-to-peer online payments (CaixaBank), peer-to-peer offline payments (Worldline), point of sale payments initiated by the payer (EPI), point of sale payments initiated by the payee (Nexi) and e-commerce payments (Amazon). [Read more at the ECB]

Project Dynamo: financing small and medium enterprises in the digital age

The BIS Innovation Hub’s Hong Kong Centre and the Hong Kong Monetary Authority have launched Project Dynamo, which aims to deliver a prototype for the compliant use of decentralised finance (DeFi) tools, such as blockchain and smart contracts, to improve access to finance for unfunded and underfunded small and medium enterprises (SMEs). The research will extend into related topics such as decentralised identifiers and the interoperability of digital payment methods such as stablecoins and central bank digital currencies. [Read more at the BIS]

Nigeria’s eNaira CBDC platform went down briefly

The Central Bank of Nigeria eNaira CBDC pilot platform went down for a few hours for “maintenance” on September 15, 2022. [Read more on Twitter]

 

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 and academics active in the CBDC / digital currency space only. The sessions are designed as instructional deep dives with full presentations and Q&A components.  Tickets are $99. [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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