Kiffmeister’s #Fintech Daily Digest (20221109)

Most of you will have noticed the collapse of crypto-asset prices over the last few days in the wake of a liquidity crunch at the FTX exchange. For those who haven’t been following the story, here’s a timeline:

This is the very high level version of the story. For more of the gory details I recommend that you read Amy Castor’s more granular timeline of events

Binance Proof-of-Reserve pledge gains support following FTX crisis

On November 8, 2022, Binance announced that it will soon start a Merkle tree-based Proof-of-Reserves audit system to provide full transparency. OKX also plans to follow suit, saying that they consider it to be an “important step” in establishing a “baseline trust” in the industry. A Proof-of-Reserve audit is typically conducted by an independent third party to ensure the custodian’s assets are owned as claimed. Kraken implemented its “advanced cryptographic accounting procedure” to allow users to verify their token balances in February 2022. [Read more at Coin Telegraph]

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.

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]