I’ve updated my tabulation of retail central bank digital currency (CBDC) explorers. Aside from the Reserve Bank of India (RBI) pilot launch, most of the updates are minor updates. [Download the tabulation here]
Mongolia to enter the CBDC race
The Bank of Mongolia (BOM) has reportedly included CBDC experiments in its 2023 monetary policy agenda. It has already established a working group and preliminary research has begun, with priority CBDC design questions including the degree of anonymity, whether to impose caps on holdings, whether it should bear interest, and can it be used to mitigate money laundering and terrorist financing? The story is plausible because back in September, 2022, the IMF reported that the BOM was one of the Asia-Pacific central banks that were exploring CBDC issuance. [Read more at Inside Mongolia]
Pakistan to tap into digital currency potential by 2025
The State Bank of Pakistan (SBP) has reportedly launched new Electronic Money Institutions (EMIs) regulations that pave the way towards issuing CBDC by 2025. Deputy Governor Jameel Ahmad said that the SBP the aim of issuing CBDC would be to promote financial inclusion and reduce corruption, and inefficiency. [Read more at Arab News] I can’t find any official announcements of SBP CBDC plans, but in a November 23, 2022 speech, Mr. Ahmad said that the central bank was researching CBDC. The speech is worth a read because it provides a nice update of Pakistani payment system developments. [Read more at the SBP]
Digital payments transformation: The key to financial inclusion
Bangko Sentral ng Pilipinas (BSP) Governor Felipe M. Medalla provided an update on Philippine payment system developments, including the BSP signifying interest in joining the Bank for International Settlements Innovation Hub’s Project Nexus. Nexus seeks to connect multiple national payment systems into a cross-border platform that could enable international payments to happen as quickly as sending a text message. [Read more at the BSP]
USDC issuer Circle terminates SPAC merger with Concord
USD Coin (USDC) stablecoin issuer Circle has announced the mutual termination of its proposed merger with special purpose acquisition company (SPAC) Concord Acquisition. The deal was announced in July 2021 with a preliminary valuation of $4.5 billion and was then amended in February 2022 when Circle’s valuation ballooned to $9 billion. USDC is currently the 2nd largest stablecoin in circulation, with a market cap of $43 billion. [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.
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