Month: June 2023

Kiffmeister’s #Fintech Daily Digest (20230619)*

~ kiffmeister

IMF presents blueprint for cross-border payments

The IMF published a paper proposing a new class of platforms to bring interoperability, efficiency, and safety to cross-border payments, and domestic financial markets. It involves a single ledger for settlement and a safe settlement asset, possibly in the form of central bank digital currency (CBDC), as well as programming standards and information management capabilities leveraging encryption. Governments would keep the right to limit user transactions in foreign currency and impose financial integrity checks. It rejected the use of distributed ledger technology (DLT) because it has “important limitations” in terms of validator costs, security, efficiency and privacy. [Read more at the IMF]

The digital dollar’s bipartisan problem

This Politico article is a good summary of the opposition to a potential U.S. retail CBDC by libertarian and anti-establishment types, citing concerns over privacy and government control. It has now seeped into US political discourse, with Tennessee Senator Bill Hagerty, claiming that a digital dollar “would give the federal government unprecedented insight into your life,” Florida Governor Ron DeSantis signing a bill restricting the use of retail CBDCs in Florida, and Joe Biden presidential primary challenger Robert F. Kennedy Jr.  condemning of them. Most of these objections are distorting facts, like assuming that digital dollar will be festooned with user surveillance and spending control mechanisms, all of which can be banned in the necessary enabling legislation. The ignorance behind these condemnations was highlighted by DeSantis and Kennedy claiming that the Fed’s soon-to-be-launched FedNow fast payments platform was a retail CBDC. [Read more at Politico]

Anyways, the article also has juicy quote from me that you can check out for yourselves. I don’t know where the quote came from. It’s probably from something I said on LinkedIn or Twitter in the heat of battle with the many ignorant boobs and conspiracy theorists that pounce on CBDC-related posts that are not frothing-at-the-mouth anti-CBDC. At first I thought they could be swayed a little bit if government legislation were to forbid the issuance of CBDC that violates user rights to privacy and self control. But no such luck, because they erect the strawman of a dystopian future in which CBDC is forced on us with no exit (e.g., transfers out of CBDC to bank accounts or cash is forbidden). In any case, I stand by the sentiment expressed in the politico article, aimed at CBDC misinformation purveyors like DeSantis and Kennedy, although I would have reframed it more politely if Politico had checked with me before publishing it.

BoE’s CBDC consultation amounts to a national scandal?

According to an article London’s City AM raised concerns over the accessibility of the central bank digital currency (CBDC) consultation document being conducted by the Bank of England (BoE) and HM Treasury that closes on June 30, 2023. “Questions arise about the document’s clarity and the intentions behind this intervention in people’s lives. To gain insights, [City AM] sought the expertise of a health researcher specializing in health literacy, mainly working with individuals facing mental health challenges and dementia. Their evaluation of the consultation process revealed significant concerns regarding the accessibility of the documentation provided to the general public.” Part of the evaluation involved an assessment by Hemingway, an app that assesses text accessibility, which rated the readability of the document at a Grade 10 level. In other words, “comprehending the document would require a reading ability of an average 15 to 16-year-old, while the average UK reading age is only 9.” Scary stuff! [Read more at City AM] 

According to BoE deputy governor for financial stability Jon Cunliffe (via Izabella Kaminska’s Blind Spot blog), the CBDC consultation had received about 50,000 public responses so far, and that while he hadn’t read them yet, the main theme that was emerging was a public concern about privacy. (The BoE’s real-time gross settlement (RTGS) renewal program only received 34 public responses.) However, he said that the system couldn’t be entirely anonymous because “complete anonymity has with it the potential for social harms, tax evasions, crime, terrorist financing” but that the Bank would not see any individual identifiable customer data. As to the banks, they “would store all that information in the way that banks store it now and that would be available to for example law enforcement under certain circumstances.” 

Applying the extended attitude formation theory to a digital euro

Electronic Markets published a paper that explores how to best create a digital euro that will be used by its intended users through an interview-based analysis of attitudes towards established payment solutions and the transfer of these attitudes. Several participants indicated that they currently see no reason for using a digital euro as an additional payment solution given the current benefits of established payment solutions. However, existing payment solutions are also found to possess perceived limitations and concerns by respondents. The paper concludes that a digital euro would need to be privacy-sensitive, offering wide acceptance for national and international online and offline payments in different contexts. [Read more at Electronic Markets]

*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]

Kiffmeister’s #Fintech Daily Digest (20230617)*

~ kiffmeister

EU’s leaked digital euro bill outlaws interest, large holdings, programmability

A leaked draft of the proposed Digital Euro Bill, to be proposed by the European Commission on June 28, 2023 will ban remuneration, surcharges and programmability, and make offline payments available from the outset. The regulation aims to ensure a level of privacy equal to taking cash from an ATM during offline, face-to-face interactions, and neither the European Central Bank (ECB) nor the payment service providers will have access to personal transaction data. The draft law also allows the ECB to set holding limits to limit disintermediation risk. Much of this is rather consistent with a slide deck published by the ECB on June 15.  [Read more at CoinDesk and the ECB]

Binance under investigation in France for alleged money laundering

The Paris prosecutor’s office is reportedly investigating Binance for allegedly offering its digital asset services illegally. Furthermore, authorities have accused the exchange of engaging in acts of aggravated money laundering, which include competing with investment operations, concealing funds, and converting illicit proceeds. According to the Binance spokesperson, this was rumor was conflated from a routine on-site visit which is a regulatory requirement for financial institutions in France. [Read more at Inside Bitcoins]

Binance to exit the Netherlands after failing to obtain regulatory approval

Binance said it will leave the Netherlands after the company’s application to register under the Dutch crypto authorization regime was rejected. Under the current regulatory regime, Binance can only get approval to operate in an European Union (EU) country by registering under its money laundering prevention rules. The firm has so far received such approvals in France, Italy, Spain, Poland, Sweden and Lithuania. This may change once the EU’s Markets in Crypto Assets (MiCA) regulation comes into force at the end of June 2023. [Read more at CNBC]

Binance and where there’s smoke there’s fire?

I’m beginning to lose track of all the directions Binance is coming under fire from, but here’s more on recent events:

And here are some random things I picked up this week, thanks to John Ho and Norbert Gehrke:

  • The Organization for Economic Co-operation and Development (OECD) Council has adopted a new set of recommendations on how digital identity should be governed on the proposal of the Public Governance Committee (PGC). [Read more at the OECD and John’s summary here]
  • In January 2022, the Asian Development Bank (ADB) launched a project to make cross-border securities transactions more efficient and secure through the use of blockchain technology. Project Tridecagon proved that the deployment of DLT/BC solutions for the settlement of cross-border securities transactions is possible, particularly in a well-governed and functionally well-defined environment. [Read more at the ADB and Norbert’s summary here]
  • The ADB published a paper that outlines why regulators urgently to adapt and adopt flexible policies that improve oversight of emerging products and providers. It sketches out the fintech landscape and explains how economies can encourage innovation while increasing international cooperation to insulate against the growing financial, operational, and cybersecurity risks the new technology brings. [Read more at the ADB and Norbert’s summary here]

*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]

Kiffmeister’s #Fintech Daily Digest (20230616)*

~ kiffmeister

BIS and Bank of England complete CBDC Project Rosalind

The Bank for International Settlements (BIS) published the results of its Project Rosalind joint work with the Bank of England. It explored how a universal and extensible application programming interface (API) layer could connect central bank and private sector infrastructures and facilitate retail central bank digital currency (CBDC) payments. It demonstrated that a well designed API layer could work with different private sector applications and central bank ledger designs and that a set of simple and standardized API functionalities could support a diverse range of use cases.

33 API functionalities and more than 30 retail CBDC use cases were explored , covering a broad range of domains for individuals and businesses, such as peer-to-peer transfers, retail payments for goods and services and small-value business transactions. A diverse range of payment options were tested, such as making retail CBDC payments online, in stores and offline, with the use of near-field communication and via interactions with point-of-sale, QR codes, mobile phones, smartcards, biometric devices and smart assistants. Some of the use cases also explored private sector programmability and micropayments. [Read more at the BIS]

OECD rolls out new tax standards for digital currencies and CBDCs

The Organization for Economic Cooperation and Development (OECD) has published a new taxation framework for the digital currency industry and central bank digital currency (CBDC). The new Crypto-Asset Reporting Framework (CARF) stems from a review of the 2014 Common Reporting Standard (CRS) to plug the loopholes associated with digital currency taxation among member countries. Under the new framework, tax information on digital currency transactions will be automatically exchanged uniformly in line with existing rules. [Read more at the OECD]

The power of choice: Options and trade-offs for digital remittances

Visa has published a paper that reports on the results of its remittance price modeling in 50 corridors, showing that private sector innovators provided a remittance option costing less than the 3% UN Sustainable Development Goal target in 40 of 50 corridors. This is also consistent with the 3.31% World Bank’s Global SmaRT Average—based on the average of the three lowest costs in each corridor—reflecting what savvy consumers pay. Both results make it clear that access to information really helps obtain a lower cost. [Read more at VISA]

Tether was once backed by Chinese commercial paper

Tether once backed its USDT stablecoin with commercial paper issued by Chinese firms, according to documents released by New York’s Attorney General (NYAG). However, Tether says that all of those securities were rated A2 or better, for what that’s worth. The NYAG released the documents in response to a freedom of information request from Bloomberg News, following an earlier unsuccessful request by CoinDesk. [The whole Bloomberg article is worth a read, as it details a number of other questionable USDT reserves management practices.]

BlackRock tries for spot-bitcoin ETF with fresh SEC filing

BlackRock has applied to become the first U.S. spot-Bitcoin exchange-traded fund (ETF), according to a filing with the U.S. Securities and Exchange Commission (SEC). Coinbase would act as custodian for the iShares Bitcoin Trust securities, and they would trade on NASDAQ exchange if approved. However, it will be a long shot, as the SEC has denied all previous similar applications, citing market concerns and a lack of investor protections, among other things. [Read more on Bloomberg]

*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]

Kiffmeister’s #Fintech Daily Digest (20230615)*

~ kiffmeister

CBDC ’human rights’ tracker revealed at Oslo Freedom Forum

The Human Rights Foundation (HRF) has launched a portal dedicated to tracking the development of central bank digital currencies (CBDCs) and how they relate to violations of civil liberties and human rights. It came out of an eight-month fellowship at the HRF announced in January 2023 and awarded to Cato Institute policy analyst Nick Anthony, researcher Janine Romer and podcaster Matthew Mezinskis. It is expected to become fully functional in November 2023, but it has launched a tip line and has published educational material. [Read more at CBDCHumanrights.org]

Ripple partners with Colombia’s central bank to explore blockchain use cases

Ripple is partnering with Colombia’s central bank to explore blockchain technology use cases. Banco de la República, in conjunction with The Ministry of Information and Communications Technologies (MinTIC) will pilot use cases that will enhance Colombia’s high-value payment system using the Ripple CBDC Platform, powered by the XRP Ledger (XRPL). The pilot will be run with Spain-based blockchain technology firm Peersyst Technology. [Read more at Ripple]

Payments Canada further delays real-time payment launch

Payments Canada will conduct a second review of its proposed Real-Time Rail (RTR) payments system, delaying delivery further. A third party delivery assurance review, focused on program management, people and processes, has recommended additional testing and investments to ensure ongoing operations once the RTR system goes live. Payments Canada is to undertake a new three-month investigation into the risks identified. [Read more at Payments Canada]

*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]

Kiffmeister’s #Fintech Daily Digest (20230614)*

~ kiffmeister

The CBDCTracker.org database is now up to date with all new central bank digital currency (CBDC) developments of May 2023. Highlights include: 

  • Nigeria‘s eNaira status has been set to “launched” although the central bank is still calling it a “pilot”
  • Banco Central do Brasil selected 14 financial institutions to test digital privacy and programmability functionalities
  • The Bank of Canada reiterated that there are no immediate plans to launch a digital loonie, but the central bank continues its CBDC work in case it is needed in the future
  • The European Central Bank published a summary of the results of its prototyping exercise and market research
  • The Hong Kong Monetary Authority is investigating potential e-HKD use cases in six categories
  • The Reserve Bank of India is expanding the scope of its CBDC pilot with four more banks and ten more cities

IDEMIA and Band of England working on offline CBDC solutions

IDEMIA is working alongside the Bank of England to explore new approaches to assured identity, privacy, and offline payments in CBDC design. [Read more on LinkedIn]

R3 doubles down on interoperability, high availability, and scalability

R3 has rolled out a public beta of its Corda distributed ledger technology (DLT) platform that is capable of interoperating with other blockchain networks. Also, in partnership with Adhara, R3 has launched a Hyperledger Foundation Lab – Harmonia – to speed the development of interoperability protocols for regulated financial institutions, and  achieve true atomic settlement across blockchain networks. [Read more at R3]

*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]

Kiffmeister’s #Fintech Daily Digest (20230613)*

~ kiffmeister

The Markets in Crypto-Assets regulation published in the EU Journal

Europe’s Markets in Crypto-Assets (MiCA) regulation has been published in the official European Union Journal. MiCA will now enter into force at the end of June 2023, and 12 months later for stablecoins, (e.g., e-money tokens and asset referenced tokens) and in 18 months for general crypto-assets and crypto-asset service providers (CASPs). [Read more at Eur-Lex]

Netherlands : the government plans to legislate to protect cash

In April 2022, twenty-three Dutch organizations, including major Dutch banks, signed a Cash Covenant, seeking to ensure that cash continues to function as a payment instrument in the face of a steady increase in electronic payments. The Ministry of Finance and De Nederlandsche Bank then commissioned a study on the future system for banknote and coin deposits and withdrawals for consumers and retailers. The Finance Minister has now presented the results of the study to Parliament, concluding that legal intervention is needed to ensure that cash remains usable, available, accessible and affordable for users. [Read more at Cash Essentials]

*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]

Kiffmeister’s #Fintech Daily Digest (20230612)*

~ kiffmeister

Thailand banks team up to launch retail CBDC pilot

The Bank of Thailand will reportedly be launching a three-month retail central bank digital currency (CBDC) in June 2023, in collaboration with three payment service providers (Bank of Ayudhya (Krungsri), Siam Commercial Bank (SCB), and 2C2P (Thailand) Co). For example, Krungsri will be inviting up to 2,000 of its staff and approximately 100 merchants near Krungsri’s headquarters to participate in testing the digital currency. Krungsri has not set a limit in terms of transaction value, focusing instead on testing the stability of the system, particularly during peak periods. This will be part of the central bank’s “foundation track” testing of Giesecke+Devrient’s Filia CBDC platform. [Read more at The Thaiger]

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 MNB and involving commercial banks, is now able to handle real money in the form of an MNB-issued retail 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]

Bank of England extends CBDC consultation deadline

The Bank of England (BoE) extended the deadline for comments on its public CBDC consultation from June 7 to June 30, 2023, following an omission of a question regarding whether non-U.K. residents should have access to the digital pound on the same basis as U.K. residents. [Read the consultation papers and respond to the questionnaire at the BoE]

*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]

Kiffmeister’s #Fintech Daily Digest (20230611)*

~ kiffmeister

Some lessons from Asian e-money schemes for CBDC adoption

The International Monetary Fund (IMF) published a paper that synthesizes four lessons from the experiences of six Asian e-money schemes (Alipay and WeChat Pay in China; Paytm in India; and GoPay, GrabPay, and ShopeePay in Southeast Asia) for central banks as they consider central bank digital currency (CBDC) issuance [Read more at the IMF]:

  1. CBDC should embody trust, convenience, efficiency, and security;
  2. CBDC service providers can facilitate adoption by leveraging digital technology, targeting use cases, developing business models, and complying with legal and regulatory requirements;
  3. Central banks could incentivize CBDC service providers to develop these four channels when considering CBDC adoption; and
  4. Central banks may be able to establish data-sharing arrangements that preserve privacy while leaving room for CBDC service providers to explore the economic value of data. 

Bank competition and household privacy in a digital payment monopoly

The IMF published a paper that explores how the introduction of an informationally more intrusive digital payment vehicle affects households’ cash use, credit access, and welfare. For example, lenders can exploit households’ payment data to infer their creditworthiness, but households then face a tradeoff between protecting their privacy and credit access. A tech monopolist controls the intrusiveness of the new payment method and manipulates information asymmetries among households and oligopolistic banks to extract data contracts that are more lucrative than lending on its own. The laissez-faire equilibrium entails a digital payment vehicle that is more intrusive than socially optimal, providing a rationale for regulation. [Read more at the IMF]

Update on the work of the digital euro scheme’s rulebook development group

The European Central Bank (ECB) published an update on the work of its digital euro scheme Rulebook Development Group (RDG) including progress with drafting based on the design choices endorsed by the ECB’s Governing Council, and the group’s next steps. The ultimate goal of the Group’s work is to define the roles and contributions of the different actors so that the desired digital euro functionalities and user experience can be coherently created by those different actors, while allowing for innovation and competition. [Read more at the ECB]

Cryptic regulation of crypto-tokens

The US National Bureau of Research (NBER) published a paper that investigates the alignment of existing securities regulations with the emerging landscape of crypto-tokens and blockchain technology. By examining the features of these digital assets, including decentralization, consensus mechanisms, and programmability, it analyzes how they interact with existing financial rules. It compares approaches to regulation across countries, considering potential impacts on innovation, and explores the issues that may arise with blockchain networks, such as payment efficiency and market safety. The paper aims to contribute to discussions about balancing innovation within the blockchain sphere and ensuring investor protection and market security, underlining areas that may necessitate regulatory improvements. [Read more at the NBER]

World needs a CBDC treaty, Cecchetti tells central bankers

Ex-BIS economic adviser and head of monetary and economic department Steve Cecchetti reportedly called for an international moratorium on CBDC development due to the financial stability risk they could pose for small jurisdictions. He said that “CBDCs are a form of narrow banks [and] I am not a fan of narrow banking… I don’t think it fixes the problem… we don’t have narrow banks because they are expensive.” [Read more at the Blind Spot]

*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]

Kiffmeister’s #Fintech Daily Digest (20230609)*

~ kiffmeister

Privacy-preserving post-quantum credentials for digital payments

The Bank of Canada published a paper that proposes a pseudonymous credential scheme for use in payment systems to protect users from fraud and abuse while retaining privacy in individual transactions. The scheme is privacy-preserving, efficient for practical applications, and hardened against quantum computing attacks. A practical and interactive credential mechanism was constructed, in which users are issued pseudonymous credentials against their personally identifiable information that can be used to register with financial service providers without revealing personal information. The protocol is shown to be secure and free of information leakage, preserving the user’s privacy regardless of the number of registrations. Comparison reveals that the scheme is more efficient than equivalent, state-of-the-art post-quantum schemes. [Read more at the Bank of Canada]

ECCB pleased with progress of digital currency initiative

Eastern Caribbean Central Bank (ECCB) Governor Timothy Antoine reportedly says he is pleased with the performance of its DCash central bank digital currency (CBDC) pilot aimed at improving financial inclusion and modernizing payment systems. He said that partnerships with licensed financial institutions and regional businesses and organizations have enabled DCash to expand its reach, enhance platform features, and ensure regional impact. [Read more at the Trinidad Daily Express]

Reimagining Digital ID

The World Economic Forum (WEF) published a paper on decentralized ID, that could offer a secure way of managing personal data without depending on intermediaries. While decentralized ID presents opportunities, it also poses risks and faces challenges. Without fit-for-purpose policy, regulation and technology, the potential for these systems to have a socially beneficial impact will be limited. The report provides tools, frameworks and recommendations for government officials, regulators and executives seeking to engage with decentralized ID. [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:

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]

Kiffmeister’s #Fintech Daily Digest (20230608)*

~ kiffmeister

Circle receives digital token license in Singapore

Circle’s Singapore affiliate received its Monetary Authority of Singapore (MAS) Major Payment Institution (MPI) license for digital payment token services in Singapore, after having obtained in-principle approval last November. It allows Circle Singapore to offer digital payment token services, cross-border money transfer services and domestic money transfer services in the city-state. Circle is the issuer of USDC stablecoin. [Read more at Circle]

SWIFT explores blockchain interoperability

SWIFT and Chainlink will be collaborating with dozens of financial institutions to test how they can use Swift’s infrastructure to instruct the transfer of tokenized assets across blockchains. This builds on a series of successful trials in 2022, and also will explore how the industry could address potential operational and regulatory pitfalls facing financial institutions when operating in blockchain environment. [Read more at SWIFT]

The digital euro: A precautionary device, not a deus ex machina

The Leibniz Institute for Financial Research SAFE published a paper that weighs the pros and cons of a possible digital euro. It concludes that, if the decision on adoption had to be taken today, the arguments against would outweigh those in favor. However, a reasonable case can be made that having in place digital payment infrastructures at the central bank, potentially accessible by a very large user base, may help overcome adverse contingencies. The related operational and legal infrastructures require a long preparatory phase. Preparing in advance can therefore be useful, even though the eventual use may appear uncertain or even unlikely. [Read more at SAFE]

BIS Project Dynamo develops smart contract prototype for SME finance

The Bank for International Settlements (BIS) Innovation Hub announced the development of a prototype developed as part of Project Dynamo that explored how institutional investors can be encouraged to finance small and medium-sized enterprises (SMEs) through the programmability and transferability of digital trade tokens on a public blockchain. The prototype makes use of non-fungible tokens and smart contracts for SME finance. [Read more at the BIS]

The crypto multiplier

The BIS published a paper that develops the concept of a “crypto multiplier,” which measures the response of a cryptocurrency’s market capitalization to the aggregate inflows and outflows of investors’ funds. It takes high values when a large share of a cryptocurrency’s coins is held as an investment rather than being used as a means of payment. Empirical evidence shows that the number of coins held for the purpose of making payments is rather small for major cryptocurrencies suggesting large crypto multipliers. The analysis explains why announcements by large investors, celebrity endorsements or financial crises can result in substantial price movements. [Read more at the BIS]

*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]