The Atlantic Council published an update to their central bank digital currency (CBDC) tracker. It shows that 114 *countries* are exploring CBDC, 11 of which have fully launched. All G7 economies have now moved into the development stage, and 18 of the G20 countries are now in the advanced stage of CBDC development, of which 7 are already piloting. As mentioned before, the Atlantic Council numbers are higher than what I count in my retail and wholesale CBDC tabulations, and what CBDCTracker.org counts, largely because the Atlantic Council tracker counts countries, whereas the others count on the basis of *currency zones* (which contain multiple countries). [Check out the Atlantic Council CBDC Tracker here]
Pre-announcement of the digital euro market research
In January 2023, the European Central Bank (ECB) will invite market participants to take part in market research to obtain an overview of options for the technical design of possible digital euro components and services. The market research will consist of a set of questions to obtain technical input, as well as cost and time estimations. Participation will not be remunerated. It will not have any impact on eligibility for future procurement procedures related to a digital euro or any other procurement procedures. Nor will it imply any pre-selection for a potential subsequent tender. The ECB intends to publish the findings of the market research in the second quarter of 2023. [Read more at the ECB]
Banque de France, HSBC, IBM test interoperability of wholesale CBDC
The Banque de France in partnership with HSBC and IBM demonstrated the use of a wholesale CBDC to enable transactions across borders and technology platforms whilst facilitating the lifecycle of digital assets and currencies in wholesale markets. A combined proof of concept tested the issuance and distribution of a CBDC, bond subscription in primary and secondary markets followed by coupon redemption, and execution of cross border and cross network payments. It proved that each transaction flowed correctly through the network of systems, automatically triggering the required events, whilst retaining visibility and control over the CBDC in circulation. [Read more at HSBC]
Accountant That Vetted Binance Reserves Halts Crypto Work
Mazars Group, the accounting firm used by Binance and other big players in the crypto industry to vouch for their assets held in reserve, has halted all such work for crypto clients, because markets haven’t been reassured by the proof-of-reserves reports it had published so far. Also, the firm was concerned about intense media scrutiny. However, the suspension is limited to its provision of proof-of-reserves reports, citing “concerns regarding the way these reports are understood by the public.” [Read more at Bloomberg]
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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