European Data Protection Board statement on the digital euro
The European Data Protection Board (EDPB) reiterated the importance of ensuring digital euro privacy and data protection by design and by default. The EDPB cautioned against the use of systematic validation and tracing of all transactions in digital euros. In this respect, the EDPB recommended that the digital euro be made available both online and offline, along a threshold below which no tracing is possible, to allow full anonymity of daily transactions. [Read more at the EDPB]
Tether Slashes Commercial Paper to Zero
Tether has completely eliminated commercial paper from its USDT stablecoin reserves, replacing them with U.S. Treasury Bills. [Read more at Tether.io]
Digital yuan transactions volume crossed $14B mark
China’s central bank digital currency (CBDC) project has reached the roughly 100 billion yuan ($14 billion) transaction mark during its pilot phase. “Multiple e-government service platforms have opened digital renminbi payment services, supporting online and offline channels to handle various public utility payments, using digital renminbi to issue tax rebate funds, special funds for monthly medical insurance payment, funds for helping people in need, and ‘specialized, special and new’ enterprise support funds, etc.” Going forward, the People’s Bank of China (PBOC) plans to launch the cross-border payments between Hong Kong and mainland China, following the principle of “anonymity for small amounts and traceability of large amounts” to protect the user’s personal data. [Read more on the PBOC’s WeChat page]
Canada’s real-time payments system’s launch delayed
The launch of Canada’s Real-Time Rail (RTR) payments system has been pushed back from the middle of next year to an as yet undetermined date. Payments Canada says an extension will “provide additional time to validate and test the components and end-to-end integration”. RTR will allow Canadians to initiate payments and receive irrevocable funds in seconds, 24/7/365. The system will tap the ISO 20022 messaging standard to support payment information traveling with every payment. [Read more at Payments Canada]
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.
