I’ve updated my tabulation of wholesale central bank digital currency (#CBDC) explorers. The only change is the updated link for the Bank for International Settlements Innovation Hub (BISIH) led mBridge multi-CBDC cross-border payments platform experiments. Interestingly, the mBridge ledger uses the HotStuff+ consensus mechanism, a variation of the HotStuff mechanism used in the now defunct Libra stablecoin-based payment platform. [Download the wholesale CBDC explorer tabulation here]

China’s Approach to Central Bank Digital Currency

Heng Wang has written one of the most comprehensive summaries of China’s CBDC approach I’ve seen recently. He argues that the role of the state, the potential cross-border use of e-CNY, and China’s proactiveness in international governance are the core features of China’s CBDC. These features contribute to China’s CBDC approach, a possible selective reshaping of international financial order. He adopts a multifactor analytical framework which explores major economic, political economy, legal and regulatory factors affecting the sustainability of China’s CBDC approach to promote a holistic understanding of e-CNY’s evolution. [Download the paper at SSRN.com]

The “Option” of Crypto Regulation

This essay by Noelle Acheson is a great read on some of the paradoxes that surround the buildout (or not) of crypto regulations. Here’s my summary of her narrative, but the whole essay is worth a read:

Crypto markets originally developed at the grass roots level, with no regulatory oversight or protection whatsoever. As the investor base broadened and as certain blow-ups highlighted the often-painful lack of rules, the demand for more reliable platforms led to the birth of the market infrastructure we have today. This in turn fueled the growth of investor interest, including that of more restricted participants with deep pockets, and the boost in volumes supported both prices and further innovation. And institutional investor involvement in crypto markets is good, but the outsized weight of its influence has led to the conflation of “crypto potential” with ‘institutional needs’… And not all of crypto needs ‘regulatory clarity’ or institutional participation. Much of it simply needs testing with real users and real incentives with some degree of supervision to ensure fair markets and mitigate illicit use. 

[FYI Noelle later rolled this into a CoinDesk article that you can read 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.

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]