In a follow-up to their October 2020 paper, the Bank for International Settlements (BIS) and seven advanced economy central banks have published a new paper that shares perspectives on how central banks can best engage industry and the public, what are the key legal issues related to retail CBDC, what tools may be needed to manage stressed conditions, and what could be the implications of using blockchain technology and associated concepts in CBDC. It also suggests that central banks consider cross-border payments use cases for wholesale CBDC. [Read more at the BIS]
Banco Central do Brasil (BCB) selected 14 financial institutions to test digital real privacy and programmability functionalities through the implementation of a delivery versus payment (DvP) protocol for tokenized federal government bonds between customers from different institutions, in addition to the services that make up this transaction. The BCB received 36 proposals of interest from more than 100 institutions. The testing will involve no real transactions (so it isn’t the pilot that the BCB claims it to be). [Read more at the BCB]
Russia’s digital ruble pilot, originally scheduled to commence on April 1, 2023, has reportedly experienced delays due to legislative processes. The latest legislative amendments indicate a significant focus on enabling non-resident access. Other legal changes raise questions about data encryption and enforcement actions. The legal approval for the CBDC is now anticipated by the end of July, 2023. [Read more at Interfax]
African, South Asian and Commonwealth of Independent States countries are using Binance Pay as a means to bridge cryptocurrencies as a payment source for goods and services, according to Binance regional business development lead Pakning Luk. Launched in 2021, the payments service has attracted over 120 million users in specific regions as it onboards major online merchant platforms and real-world retailers to its payment rail. Luk highlighted remittance and online shopping as key use cases seen by its user base. [Read more at CoinTelegraph]
The World Economic Forum (WEF) published a paper that highlight the needs and challenges in developing a global approach to crypto-asset regulation. In doing so, it delves into the various regulatory approaches being adopted by different jurisdictions. The result of multistakeholder consultations with experts from the Digital Currency Governance Consortium, comprising experts from public authorities, regulators, policy-making bodies, industry and academia, the paper explores pathways to creating a responsible crypto-asset ecosystem globally. [Read more at the WEF]
*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:
- 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]
- I’ll be lecturing at the Digital Euro Association (DEA) Digital Money Academy on July 27, 2023. [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 email@example.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 (firstname.lastname@example.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]