Kiffmeister’s #Fintech Daily Digest (20221118)

I’ve updated my tabulation of wholesale central bank digital currency (CBDC) explorers. There 17 central banks that have recently issued, piloted, experimented with and/or researched wholesale CBDC. [Check it out here]

Georgian central bank plans to roll out pilot scheme for digital currency

The National Bank of Georgia reportedly plans to roll out a CBDC pilot. The central bank first announced the digital lari project in 2021 and invited innovators for a public-private partnership for the purpose. [Read more at Agenda.de]

The Macroeconomic Implications of CBDC: A Review of the Literature

The US Federal Reserve Board (FRB) published a paper that provides an overview of the literature on how a CBDC would affect the banking sector, financial stability, and the implementation and transmission of monetary policy in a developed economy such as the United States. A CBDC has the potential to improve welfare by reducing financial frictions in deposit markets, by boosting financial inclusion, and by improving the transmission of monetary policy. However, a CBDC also entails noteworthy risks, including the possibility of bank disintermediation and associated contraction in bank credit, as well as potential adverse effects on financial stability. A CBDC also raise questions regarding monetary policy implementation and the footprint of central banks in the financial system. Ultimately, the effects of a CBDC depend critically on its design features, particularly remuneration. [Read more at the FRB]

eCurrency providing technology for National Rollout of CBDC in Jamaica

eCurrency has entered into a long-term partnership with Bank of Jamaica to provide technology services for the national rollout of its JAM-DEX CBDC. [Read more at PR Newswire]

New FTX chief says crypto group’s lack of control worse than Enron

The new chief executive of FTX, an insolvency professional who oversaw the liquidation of Enron, has said that the bankruptcy of the crypto group is the worst case of corporate failure he has seen in more than 40 years. John Ray III, who was appointed to run the FTX bankruptcy, said in a US court filing that he had never seen “such a complete failure of corporate controls and such a complete absence of trustworthy financial information”. [Read the statement here]

FTX Bankruptcy Jurisdiction Fight: Bahamas Regulators Now Confirm They Directed SBF to Move Assets

At least some of the millions of dollars in FTX customer funds mysteriously moved off the exchange during the week of November 7, 2022 were moved at the direction of regulators in the Bahamas. That assertion was made in a new filing by the company, and confirmed later by the Securities Commission of the Bahamas. [Read more at Decrypt]

And for those interested in following the FTX trials and tribulations, I’m still collecting them on my Diigo social bookmarking page.

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.

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]

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