The Bank for International Settlements (BIS) and the central banks of Israel, Norway and Sweden are launching Project Icebreaker, a joint exploration of how central bank digital currencies (CBDCs) can be used for international retail and remittance payments. using a hub-and-spoke model. The project will run through the end of the year, with a final report expected in the first quarter of 2023. [Read more at the BIS]
CBDC pilots and research, lessons for the digital euro
The Digital Euro Association published a very nice summary of the current state of play in the CBDC space. It’s part of a series of articles, this first one providing a general overview of global CBDC projects, motivations, with a particular focus on the Bahamas, China, Eastern Caribbean Union, Nigeria and Russia. Subsequent articles in this series will provide a deeper understanding of CBDC research and development in countries with different challenges and policy objectives. The articles will highlight that there is no one-size-fits-all approach to CBDC, but that CBDC solutions must be based on the needs and challenges of each country. [Read more at the DEA]
ESMA not planning blockchain securities rule changes before DLT pilot regime starts
The European Securities and Markets Authority (ESMA) says there is no need for new regulatory technical standards before the start of the European Union’s distributed ledger technology (DLT) pilot regime in March 2023. The regime aims to reduce the regulatory burden to enable blockchain-based securities trading and settlement to be trialed at scale and provide legal certainty. Tokenized stocks, bonds and investment funds fall within the DLT Pilot regime and have monetary limits. [Read more at Ledger Insights]
FCA green lights Revolut, making no UK crypto firms operating under temporary status
The UK Financial Conduct Authority (FCA) has added crypto-friendly payments app Revolut to its list of companies authorized to offer crypto products and services in the country. Revolut was among a small number of entities granted an extension to the FCA’s temporary cryptocurrency licensing program in March 2022. It was the last company on this list as other applicants withdrew their requests, were refused registration, or had their licenses granted before the end of June. [Read more at CoinTelegraph]
France’s CBDC Projects to Manage DeFi Liquidity, Settle Tokenized Assets
The Banque de France announced two new wholesale CBDC projects. The first will look at improving CBDC market liquidity management in decentralized finance (DeFi), such as via automated market makers. The second will focus on issuing and distributing tokenized bonds on a blockchain. [Read more at the Banque de France]
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.