Bank of Japan to ramp up its digital yen proof-of-concept work
The Bank of Japan (BoJ) will be ramping up its digital yen central bank digital currency (CBDC) proof of concept (PoC) work in April 2023. It will extend its technical feasibility work to modeling a CBDC ecosystem with the participation of private companies. No actual retail transactions will be made during the pilot, only simulated ones, so it is not a “pilot” as described in the announcement. In the new PoC phase, alternative data models, architectures for offline payments and other vital elements of the system will be tested, and a CBDC forum will be created. [Read more at the BoJ]
Russia to roll out CBDC pilot with real consumers in April
The Bank of Russia will reportedly launch a digital ruble CBDC pilot on April 1, 2023. It will involve 13 local banks and several merchants, with transactions involving person-to-person transfers and payments to merchants. In the first phase the banks will enter the pilot with chosen customers, after which Bank of Russia will determine how to scale the pilot further. The testing of foreign exchange capabilities and the opening of wallets to non-residents may occur from 2024. [Read more at Tass]
SEC proposes rules that would change which crypto firms can custody customer assets
The US Securities and Exchange Commission (SEC) has proposed the expansion of custody rules to include crypto-assets. In order to become a “qualified custodian” U.S. and offshore firms would additionally need to ensure that all custodied assets are properly segregated, while these custodians will be required to jump through additional hoops such as annual audits from public accountants, among other transparency measures. [Read more at the SEC]
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]
