CBDCTracker.org released another update to its central bank digital currency (CBDC) database. [Check it out at CBDCTracker.org and read Atakan Kavuklu’s summary of the key updates on Medium]
The Financial Stability Board (FSB) and the IMF published a report outlining a comprehensive policy and regulatory response to crypto-asset activities to address the risks of crypto-assets to macroeconomic and financial stability. To address macroeconomic risks, it says jurisdictions should safeguard monetary sovereignty and strengthen monetary policy frameworks, guard against excessive capital flow volatility and adopt unambiguous tax treatment of crypto-assets. Some authorities might consider bans but they should not substitute for robust macroeconomic policies, credible institutional and monetary policy frameworks, and comprehensive regulation and oversight. [Read more at the FSB]
Bangko Sentral ng Pilipinas selects technology for CBDC project
The Bangko Sentral ng Pilipinas (BSP) has selected Hyperledger Fabric as the distributed ledger technology (DLT) for its Project Agila (formerly known as Project CBDCPh) wholesale central bank digital currency (CBDC) sandbox tests. Project Agila aims to orient the BSP and participating financial institutions on CBDC technology solutions that have the potential to enhance the country’s large-value payment system. By the end of Project Agila, the participants are expected to have a clearer understanding of CBDC technology and assess the capability of wholesale CBDCs to foster advancements in the large-value payment system. [Read more at the BSP]
Palau to freeze USD-backed stablecoin after proof-of-concept launch in July
Palau is wrapping up the first of its US dollar stablecoin (PSC) proof-of-concept (PoC) experiments on September 8, 2023, just over a month after the launch in July 2023 that was slated to run for three months. Following the distribution halt, PSC will also be frozen after September 15, becoming unavailable for spending by users. The government will send a survey to PoC participants, the results of which will be critical to deciding whether to move forward with the next phase of the stablecoin program. [Read more on X]
IMF reports on Saudi Arabia’s CBDC exploration
The IMF in its Saudi Arabia 2023 Article IV staff report reported on the Saudi Central Bank (SAMA) central bank digital currency (CBDC) explorations. Through Project Aber, SAMA was one of the first central banks to experiment with domestic and cross-border wholesale CBDC. Leveraging the lessons of the experiment, SAMA is continuing to explore wholesale CBDC use cases. SAMA is undertaking a three-phased approach (evaluation, testing, implementation), allowing for ongoing assessment at each stage, against which the future roadmap will continue to evolve. [Read more at the IMF]
FASB says crypto-assets should be marked at current values
The U.S. Financial Accounting Standards Board (FASB) has moved to insist companies use “fair-value” accounting to report their crypto holdings. The accounting rules will be mandatory for all companies for fiscal years beginning after December 15, 2024. However, companies will be allowed to adopt the rules once FASB formally publishes them later in 2023. The crypto assets have to be currently classified as intangible assets, as defined by US accounting rules, and fungible. Stablecoins and wrapped tokens aren’t covered. [Read more at FASB]
*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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