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]
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 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 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]
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]
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.
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 email@example.com.
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