Kiffmeister’s #Fintech Daily Digest (20221102)

Project Mariana: CBDCs in automated market makers

The Bank for International Settlements (BIS) Innovation Hub, Banque de France, Monetary Authority of Singapore (MAS) and Swiss National Bank launched Project Mariana, to investigate the use of decentralized finance (DeFi) protocols to automate FX trading and settlement. The project will explore the use of automated market makers (AMMs) for the cross-border exchange of hypothetical CHF, EUR and SGD wholesale central bank digital currency (CBDC). AMMs combine smart contracts with pooled liquidity to price and transfer digital assets automatically. [Read more at the BIS]

MAS Completes Its First Digital Asset Live Trades Under Project Guardian

The MAS’s Project Guardian DeFi-based wholesale funding platform completed its first live trades, with DBS Bank, JP Morgan and SBI Digital Asset Holdings conducting live foreign exchange and government bond transactions against liquidity pools comprising of tokenized Singapore and Japanese government bonds, Japanese Yen (JPY) and Singapore Dollar (SGD). More industry pilots have been launched to test the application of asset tokenization and DeFi across a broader range of use cases in the financial sector. [Read more at the MAS]

Singapore Starts Two New Token Pilots With Standard Chartered, HSBC and Others

The MAS is starting two pilot projects to explore trade finance and wealth management product tokenization. The trade finance project will be led by Standard Chartered, and the wealth management product one involves HSBC, UOB, and Marketnode, a digital asset platform built by the Singapore Exchange and Temasek. [Read more at the MAS]

India’s CBDC makes glitch-free start in the world of real-time trades

India’s wholesale CBDC reportedly made a steady and glitch-free start in the world of real-time trades on its first day (November 1, 2022), with several banks using the virtual money backed by Mint Road to settle nearly 50 government bond transactions cumulatively worth about Rs 275 crore. [Read more at the Economic Times]

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]