Kiffmeister’s #Fintech Daily Digest (20221116)

Facilitating Wholesale Digital Asset Settlement

The New York Fed’s Innovation Center (NYIC) is participating in a proof-of-concept project along with members of the private sector to explore the feasibility of an interoperable network of digital central bank liabilities and commercial bank digital money using distributed ledger technology (DLT). In a 12-week proof-of-concept project—the Regulated Liability Network U.S. Pilot—the NYIC will experiment with the concept of a regulated liability network (RLN). RLN is a concept for a financial market infrastructure (FMI) facilitating digital asset transactions that connect deposits held at regulated financial institutions using DLT. The proof-of-concept will build a prototype for a distributed ledger-based network and test the feasibility of payments between financial institutions using tokenized regulated liabilities on the RLN. The project will be conducted in a test environment and only use simulated data. [Read more at the NY Fed]

Genesis’s crypto-lending unit Is halting customer withdrawals in wake of FTX collapse

Genesis Global Capital, the lending arm of crypto investment bank Genesis Global Trading, is temporarily suspending redemptions and new loan originations in the wake of FTX’s collapse. The unit serves an institutional client base and had $2.8 billion in total active loans as of the end of the third quarter of 2022. This decision impacts the lending business at Genesis and does not affect Genesis’s trading or custody businesses. [Read more at CoinDesk]

Bahamas central bank shares CBDC lessons from Sand Dollar’s first two years

In a recent speech, Central Bank of the Bahamas (CBB) Governor John Rolle described four central bank digital currency (CBDC) factors that the Bahamas’ experience suggests are particularly important – and that remain important to its own efforts to encourage CBDC adoption. Those factors are: building a network of merchants that accept and encourage CBDC use; achieving interoperability with the traditional banking system; enlisting participation from the traditional banking sector and credit unions; and the importance of “user education” and “inspiring user confidence”. [Read more at Global Government Fintech]

Digital Euro Association Digital Money Academy

I will be discussing global central bank digital currency (CBDC) developments at the Digital Euro Association’s Digital Money Academy on November 29. If you want to get into CBDCs, register for the Academy 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.

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