USDC stablecoin repegs after US intervenes on SVB
Cryptocurrencies rallied and Circle’s USDC stablecoin repegged after the U.S. Treasury and Federal Reserve announced a range of measures to stabilize the banking system in the wake of Silicon Valley Bank’s (SVB’s) demise, and said depositors at SVB would have access to their deposits on Monday, March 12, 2023. Also, the Federal Reserve announced its Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral, all valued at par. The moves came as authorities also took possession of New York-based Signature Bank, the second failure of a crypto-relevant bank in a matter of days. [Read more at Reuters]
The IMF on the macrofinancial implications of crypto-assets
The IMF published a paper on the macrofinancial implications of crypto-assets that they had delivered to the G20 in February. It concluded that “a widespread proliferation of crypto assets comes with substantial risks to the effectiveness of monetary policy, exchange rate management, and capital flow management measures, as well as to fiscal sustainability… Moreover, changes may be required to central bank reserve holdings, and the global financial safety net, yielding potential instability… Finally, banks may lose deposits and have to curtail lending.” [Read more at the IMF]
Custodia Bank on the U.S. Treasury and Federal Reserve banking system “stabilization” measures:
Upcoming conferences, webinars and speaking engagements:
- I’ll be providing an introduction to global CBDC developments (virtually) to a panel at the March 15 Digital Euro Association (DEA) Digital Money Academy with Ruslan Konurbayev (National Bank of Kazakhstan) , and Péter Fáykiss (Maygar Nemzeti Bank). [Register here]
- I’ll be on a “public finance and the digital future” panel at the March 23-25 Willamette College of Law “Our Money, Our Future” (Hybrid) Conference in Salem, Oregon on March 24. [Register here]
- I’ll be moderating the “CBDCs, Stablecoins, Commercial Bank Money Tokens – What is the Future of Money?” panel discussion at the Digital Euro Association (DEA) Digital Euro Conference on March 31 in Frankfurt. [Register with this link and the DECKIFFMEISTER20 code and get a 20% discount]
- 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]
