EU Parliament approves crypto licensing, funds transfer rules

The European Parliament voted in the new Markets in Crypto-Assets Act (MiCA) crypto licensing regime, and the Transfer of Funds “travel rule” regulations. It now needs approval from the European Council before becoming effective regulation, after which the main provisions start to apply just over 12 months after publication in the EU’s official journal, likely in June. For example, on that timeline, the specific provisions of MiCA related to stablecoins will come into force in July 2024, while others, including those on crypto-asset service providers, will apply in January 2025. MiCA will allow companies to operate throughout the entire EU crypto market with a MiCA license granted in one country. [Read more at CoinDesk]

EU Parliament report warns of the risks of a digital euro

The European Parliament published a briefing ahead of a vote on whether to proceed with the technical implementation phase of a digital euro. While the report is broadly supportive of the preparatory work carried out by the European Central Bank (ECB), it is not a proponent of a digital euro itself. It casts doubts on the eventual launch of a central bank digital currency (CBDC), arguing that “when in doubt, [one should] abstain (but be prepared).” [Read more at the European Parliament website]

The shape of things to come: innovation in payments and money

Bank of England Deputy Governor Jon Cunliffe spoke about four areas where the tokenization of money is now being explored, stablecoins used for payments, the tokenization of commercial bank deposits, the next stage of the Bank of England’s Digital Pound work and the Bank’s work to ensure to ensure these new forms of money are robust and uniform. [Read more at the Bank of England and Rosa Giovanna Barresi’s commentary on LinkedIn]

SocGen subsidiary is first systemic bank to issue stablecoin on public blockchain

Societe Generale subsidiary SocGen Forge unveiled the EUR-pegged EURCV stablecoin (EUR CoinVertible), which is initially being issued on the Ethereum public blockchain with plans for other blockchains as well. This is the first public blockchain stablecoin issued by a subsidiary of a global systemically important bank (G-SIB). Access to the fully-backed stablecoin is restricted to investors that have been through SocGen KYC and AML procedures. The motivation for the issuance includes using it as a robust settlement asset for on-chain transactions, corporate treasury, on-chain liquidity funding and an asset for margin calls. [Read more at Ledger Insights]

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]
• I’ll be participating in Currency Research’s in-person Central Bank Payments Conference and Global Payments Summit in Cape Town from June 26 to 30. [Register here and here respectively]

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]