Kiffmeister’s #Fintech Daily Digest (20230517)*

The MNB Student Safe mobile application has been renewed

The Magyar Nemzeti Bank (MNB) and the Money Compass Foundation launched a new version of the Student Safe mobile app, to increase financial literacy and strengthen digital financial inclusion among 8 to 14 year-olds. The new app, operated by the central bank and commercial banks, is now able to handle real money in the form of an MNB-issued central bank digital currency (CBDC). By successfully completing quizzes children can collect “tallérs” that can be redeemed for webshop (eMAG) vouchers. In addition, the new app allows users to transfer funds to bank accounts, and make QR-code payments. Parents can also send their children forints or student tallérs. [Read more at the MNB]

Nigeria’s eNaira, one year after

The IMF published a paper that reflects on the first year of the eNaira—the first CBDC in Africa. Despite the undisrupted operation for the first full year, the project has not yet moved beyond the initial wave of limited adoption. Network effects suggest the initial low adoption spell will require a coordinated policy drive to break it. The eNaira’s potential in financial inclusion requires a strategy to set the right relationship with mobile money, given the former’s potential to either complement or substitute the latter. Cost savings from integrating CBDC—as a bridge vehicle—in the remittance process may also be substantial. [Read more at the IMF]

International aspects of CBDCs: update on digital euro

The European Central Bank (ECB) has released a deck on key considerations relating to the internationalization of a digital euro. The ECB aims to make the digital euro accessible to everyone within the euro area before focusing on users outside the euro area. However, the ECB sees opportunities offered by the international dimension that should be explored by gradually introducing different use cases. These include person-to-person cross-border payments (e.g. remittances), and e-commerce payments from (to) online merchants outside the euro area. [Read more at the ECB

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.Upcoming conferences, webinars and speaking engagements:

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]