Brazil central bank plans to launch a CBDC in 2024
President Roberto Campos Neto said that the Banco Central do Brasil (BCB) plans to introduce a central bank digital currency (CBDC) by 2024. The central bank will conduct proof of concept work with some financial institutions before launching a full-blown pilot. [Download the BCB presentation here]
Basel Committee finalizes policy suggesting 2% bitcoin cap for banks
The BIS Basel Committee on Banking Supervision has finalized a proposed policy that would place a 2% limit on banks’ Tier 1 capital held in bitcoin and other “Group 2” crypto-assets. Tier 1 capital is the core capital held in a bank’s reserves that is used to fund business activities for the bank’s clients. It includes common stock, as well as disclosed reserves and certain other assets. Group 1 crypto-assets include tokenised traditional assets (Group 1a) and crypto-assets with effective stabilization mechanisms (Group 1b). Group 1 crypto-assets are subject to capital requirements based on the risk weights of underlying exposures as set out in the existing Basel Framework. Group 2 crypto-assets are those that fail to meet any of the Group 1 classification conditions. [Read more at the BIS]
Why the UN is sending war-torn people In Ukraine aid in stablecoins
Through a new blockchain-based humanitarian program, the Office of the UN High Commissioner for Refugees (UNHCR) will send cryptocurrency to Ukrainians displaced by Russia’s atrocities. Stellar Development Foundation has partnered with UNHCR to deliver USD Coin (USDC) to Stellar’s Vibrant digital wallets of eligible applicants. The relief beneficiaries can then convert the USDC into the currency of their choice at at MoneyGram outlets, of which there are 4,500 in Ukraine. The program’s developers hope that this will allow refugees to get aid more easily, regardless of whether or not they have access to a bank account. [Read more at Bitcoinist]
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]
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