I’ve updated my tabulation of retail central bank digital currency (CBDC) explorers, mostly just updated links, and moving Israel and Norway up to the proof-of-concept (PoC) section. [Download it here]

Does the IMF have a vendetta against cryptocurrencies?

Is the International Monetary Fund (IMF) really hostile to crypto? Many in the cryptocurrency and blockchain space think so, according to this CoinTelegraph article. However, CoinTelegraph was kind enough to offer me and the Atlantic Council’s Josh Lipsky the chance to rebut. [Read the article at Coin Telegraph]

COVID-19 brought U.S. unbanked percentage to record low, FDIC says

Government COVID-related relief payments contributed to a drop in the number of unbanked households in the U.S. in 2021, according to the Federal Deposit Insurance Corp. (FDIC). Roughly 1.2 million more households are banked, compared with 2019 figures, with nearly half of newly banked households that received pandemic relief payments saying the payments contributed to their decision to open a bank account. But still an estimated 4.5% of Americans, representing 5.9 million households, lacked a bank or credit union account in 2021. [Read more at the FDIC]

SWIFT delays the start of ISO 20022 migration until March 2023

Since August 2022, all required ISO 2022 cross-border payments and reporting (CBPR+) capabilities have been deployed and institutions have been able to exchange messages on an opt-in basis.  However, in October the ECB decided to delay the Eurosystem ISO 20022 migration from November 21, 2022 to March 20, 2023, to ensure greater system stability and user readiness, as well as smooth transition to new platform. Hence, an overwhelming majority of SWIFT’s global community requested that SWIFT align the start of the global ISO 20022 migration for CBPR+ with the ECB’s updated timetable to ease implementation. [Read more at SWIFT]

PayPal Brings Back $2500 Penalty for Violations of Acceptable Use Policy

After claiming it was a mistake, PayPal has reinstated its $2500 penalty for each violation of its Acceptable Use Policy. Earlier. PayPal was lambasted for its authoritarian move and intolerance of free speech. While the wording of the policy has changed, it still gives PayPal the right to penalize users that violate the terms by “the promotion of hate, violence, racial or other forms of intolerance that is discriminatory.” While certain aspects can be easily defined, others – such as intolerance – can be subjective depending upon individual beliefs. [Read more at PayPal]

Fed skeptical about bank-issued stablecoins on open permissionless DLT networks

U.S. Federal Reserve Board (FRB) Vice Chair for Supervision Michael Barr shot across the bow of any bank plans to issue dollar-denominated stablecoins on open permissionless distributed ledger technology (DLT) networks. “It remains an open question whether banks can engage in such arrangements in a manner consistent with safe and sound banking and in compliance with relevant law… [Banks] may not be able to track who is holding their tokenized liabilities, or whether they are being used in risky or illegal activity. [Read more at the FRB]

Under-researched areas of CBDC

The Société Universitaire Européenne de Recherches Financières (SUERF) published a briefing paper that highlights some of the under-researched trade-offs in central bank digital currency (CBDC) design. [Read more at SUERF]

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.

The CBDC Think Tank is a New York-based technology- and vendor-agnostic digital currency knowledge-sharing hub for staff of central banks, international financial institutions (IFIs) and non-government organizations (NGOs). It runs webinars, workshops, and masterclasses to disseminate knowledge and facilitate communication. It also engages in advisory work, focusing on delivering impact that best aligns with the needs of its clients and the forward progress of human civilization. The CBDC Think Tank welcomes requests from central bank officials for CBDC advisory services.  [click here for more information].

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]