India’s Central Bank Crystalizes CBDC Vision in Concept Note

The Reserve Bank of India (RBI) published a report on its central bank digital currency (CBDC) plans, indicating that a digital rupee pilot will be launched “soon”. Motivations include reducing physical cash management operational costs, fostering financial inclusion, payments system resilience and efficiency, and cross-border payments. A key requirement will be to offer availability and resilience benefits when electrical power or mobile network is not available in remote locations. [Read more at the RBI]

$570 million worth of Binance’s BNB token stolen in another major crypto hack

Crypto exchange Binance temporarily suspended its blockchain network after hackers made off with around $570 million worth of its BNB token. According to Binance,  cross-chain bridge linking with its BNB Chain was targeted, enabling hackers to move BNB tokens off the network. Cross-chain bridges are tools that allow the transfer of tokens from one blockchain to another. The company said it had worked with network validators to pause creation of new blocks on BSC, suspending all transaction processing while a team of developers investigates the breach. [Read more at CNBC]

EBA Clearing, Swift and TCH to pilot faster cross-border payments between Europe and the US

EBA Clearing, The Clearing House (TCH) and SWIFT announced that the delivery of the Immediate Cross-Border Payments (IXB) pilot service is on track. Developed with the support of 25 financial institutions from both sides of the Atlantic, the IXB pilot service will leverage existing real-time payment systems RTP in the United States, run by TCH, and RT1 in Europe, run by EBA Clearing. IXB will begin processing the first live transactions in the EUR and USD currency corridor in the coming months. [Read more at EBA Clearing]

Crypto-assets and their risks for financial stability

The European Securities and Markets Authority (ESMA) published its analysis of crypto-assets’ risks and transmission channels to financial markets. It finds that crypto-asset markets are still small in size and their interlinkages to traditional markets are limited, but this situation may change as market growth can occur suddenly and risk transmission is possible through various channels. It recommends continuous monitoring of the crypto-asset market and its interconnectedness with the wider financial system to assess newly emerging threats in a timely manner. [Read more at ESMA]

Associations Respond to Basel Crypto Consultation

The International Swaps and Derivatives Association, the Global Financial Markets Association, the Futures Industry Association, the Institute of International Finance, the International Securities Lending Association, the Bank Policy Institute, the International Capital Markets Association and the Financial Services Forum, responded to the Basel Committee on Banking Supervision’s (BCBS) second consultation on the prudential treatment of crypto-asset exposures. [Read more on ISDA.org]

 

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.