Global toolkit on regulatory sandbox for central bank digital currency
The United Nations has published a sandbox framework that maps out the steps and key elements for the designing and operationalizing central bank digital currency (CBDC). First a proof of concept (PoC) is used as part of the selection process for the CBDC issuing system, and then the sandbox is used to test the basic capabilities of the platform to issue CBDC securely. Then banks and other payment service providers (PSPs) are brought in to test settlement functions. When key criteria have been met, then the CBDC can be released for pilots with real CBDC for use with selected groups of users, merchants, and other stakeholders. The framework was developed in collaboration with the Maldives Monetary Authority, and the work goes back at least to September 2022. [Read more at the United Nations]
JPM Coin launches programmable payments
Onyx by JP Morgan has launched programmable payments for blockchain-based accounts on JPM Coin. The solution allows users to use an if-this-then-that interface to program their transactions. Customers can control their JPM Coin accounts in new ways such as dynamic funding, in which they can apply various rules for funding a bank account in case of shortfalls, and event-based payouts, in which they can execute transactions depending on various needs such as delivery of assets. On November 6, Siemens AG completed its first payment using the feature, and FedEx and Cargill will be going live with the solution in the next few weeks. [Read more at Finextra]
FYI here are some of my upcoming speaking engagements:
– Currency Research Americas Cash Cycle & Payments Seminar (Orlando Florida on November 27-30)[Register here]
– Digital Euro Conference 2024 (Frankfurt on February 29)[Register 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.
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
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]
