Brazil central bank reportedly to launch its digital currency in 2024
Banco Central do Brasil (BCB) reportedly aims to launch its central bank digital currency (CBDC) in 2024. It will be designed to encourage banks to tokenize their assets, so it sounds like it’s being designed for niche cases, rather than general purpose usage.The huge popularity of the BCB’s PIX payment system might argue for such an approach. Its use now surpasses transactions with credit and debit cards in the country. [Read more at Reuters] [Sandra Mianda has provided a great PIX explainer and infographic on LinkedIn]
BIS Innovation Hub unveils new stablecoin, DeFi, CBDC projects
The BIS Innovation Hub (BISIH) has unveiled its 2023 work program. This includes previously unannounced projects on stablecoins, DeFi and CBDC, including Project Pyxtrial at the London Centre that will monitor stablecoins to ensure that the backing assets at least match the stablecoin issuance. And “going into its fourth year of life, the BIS Innovation Hub is reaching a cruising altitude, with 21 ongoing and five concluded projects. The Hub will increase the integration of its global network with additional cross-centre projects such as Mariana, which connects the Singapore, Swiss and upcoming Eurosystem centres, and others.” [Read more at the BISIH]
Is the Bitcoin Lightning Network the Future of Payments?
etonec has published a Bitcoin Lightning network explainer. Although Bitcoin enables global transactions without intermediaries, settling all payments via the Bitcoin blockchain has limitations. Lightning can significantly increase payment throughput. Also the possibility to send other assets, such as stablecoins, via the Lightning network, might positively impact its development. [Read more at etonec]
Dubai releases crypto regulations for virtual asset service providers
Dubai’s Virtual Asset Regulatory Authority (VARA) has issued new guidelines for virtual asset service providers (VASPs) operating within the emirate. VARA’s “Full Market Product Regulations” include four compulsory rulebooks and activity-specific rulebooks that lay down the rules for operating VASPs. The rules excluding those operating under the Dubai International Financial Centre (DIFC), a free zone with its own regulator. [Read more at VARA]
Upcoming conferences, webinars and speaking engagements:
- I’ll be moderating a panel on “what happens when the lights go out…different schemes for offline functionality” at the in-person Digital Currency Conference (DCC) in Mexico City on May 18. [Register 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.
The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).
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]