Nigeria Seeks Partners for Tech Revamp of Its eNaira Digital Currency
The Central Bank of Nigeria (CBN) is in talks with potential technology partners to develop a new system to run and manage its eNaira central bank digital currency (CBDC). The CBN wants to develop its own CBDC software so that it can keep full control of the underlying technology. The CBN, in collaboration with Bermuda-based Bitt inc., launched the eNaira in October 2021 which, like other CBDC pilots and launches, has struggled to win wide adoption, although not necessarily because of the technology platform. [Read more at Bloomberg]
Crypto shocks and retail losses
The Bank for International Settlements published an analysis of a new data set on retail holdings of crypto-assets that reveals that in the wake of the Terra/Luna collapse and the FTX bankruptcy, crypto trading activity increased markedly, with large and sophisticated investors selling and smaller retail investors buying. Data on major crypto trading platforms over August 2015–December 2022 show that, as a result, a majority of crypto app users in nearly all economies made losses on their bitcoin holdings. [Read more at the BIS]
Seeing Through Money – Democracy Data Governance and the Digital Dollar
A paper by Raúl Carrillo advocates a modular proposal for the U.S. Postal Service to issue new devices for using Digital Dollars. These “smartcards,” similar in size to existing debit cards, would not make payments over the internet. Instead, they would store money on the card hardware. People would use the cards for everyday small-dollar transactions, but the cards would not be capable of generating data that companies and agencies could abuse. See the description of WhisperCash cards below for an existing example of such technology. [Read more at SSRN]
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]
