FYI: Call for Papers – Special Issue of Journal of Economics and Statistics on Central Bank Digital Currency (CBDC). Submission of full papers is due January 8, 2024. [Read more here]
Work on e-krona entering new phase
Sveriges Riksbank has concluded the e-krona proof-of-concept (PoC) work that began in spring 2020 with the aim of testing technical possibilities for an e-krona and deepening its focus on the relevant policy issues. The project’s work on evaluating a digital krona was carried out in an isolated IT environment where, for example, the possibilities to make off-line payments and streamline cross-currency payments have been tested (hence not a “pilot” as the Riksbank calls it). The project now enters a new phase focusing more on the design of an e-krona that can be issued, and investigating the amendments required to legislation should the Riksdag decide to issue an e-krona. [Read more at the Riksbank]
Reserve Bank of Australia and Digital Finance CRC complete CBDC research project
The Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) published a report on the findings from a joint research project that explored potential use cases for a central bank digital currency (CBDC) in Australia. 16 use cases participated in the project, with many of the use cases leveraging the ability to make programmable payments to facilitate multi-party, conditional or escrowed payments, or to enable atomic settlement of transactions in tokenized assets. The four key themes that emerged are highlighted in the infographic below. However, the report concluded that there are still lots of policy questions and practical issues to be addressed in determining whether there is a case for issuing a CBDC in Australia. [Read more at the RBA]
Financial stability risks from crypto-assets in emerging market economies
The BIS Consultative Council for the Americas published a report on the financial stability risks of crypto-assets, with an emphasis on risks in emerging market economies (EMEs). The report expresses serious concerns about the ability of EME financial authorities to monitor crypto-asset markets and to assess the financial stability risks from crypto-assets. The report details some principles for regulating and supervising crypto-asset markets in EMEs. Authorities can consider (selective) bans, containment and regulation. The report focuses on three main principles: establishing clear mandates for authorities, complementing activity-based regulation with entity-based regulation and addressing data gaps. [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.
Kiffmeister’s 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 (only) if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and 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.
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