Month: November 2023

Kiffmeister’s #Fintech Daily Digest (20231105)*

~ kiffmeister

IMF update on its Peru CBDC technical assistance

The IMF has been providing central bank digital currency (CBDC) technical assistance (TA) to the Banco Central de Reserva del Perú (BCRP) since 2021. The initial TA mission supported the central bank during the first phase of the project, which involved clarifying the context, key questions, and potential approaches to study a CBDC. The second phase started with the publication of a paper by the central bank. The white paper outlined the context, goals and challenges related to a potential CBDC in Peru. Consistent with recommendations from the first mission, the BCRP recognized the need to focus on an initial engagement with stakeholders, including representatives of the banking sector, payment service providers, and the fintech and technology sector. [Read more at the IMF]

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]

Kiffmeister’s #Fintech Daily Digest (20231104)*

~ kiffmeister

ECB pushes back on commitment to immediate availability of offline digital euro

The regulation proposed by the European Parliament and Council requires both online and offline digital euro payment transactions to be available on the first issuance of the digital euro. However, the European Central Bank (ECB) says that “further testing by the Eurosystem will be necessary to guarantee that all relevant digital euro models offer sufficient security and maturity… Enshrining the ECB’s intent in a legally binding provision will constrain its capacity to react to the higher level of uncertainty that the offline digital euro model involves, as well as to react to exceptional circumstances necessitating an imminent issuance of any available model. If trade-offs that have not yet been identified arise, postponing the overall issuance of the digital euro would be the only option available to the ECB… For these reasons, the ECB invites the co-legislators to consider the imposition of a requirement upon the ECB to deliver both online and offline versions of the digital euro, coupled with a ‘best efforts’ provision under which the ECB would make available both online and offline models as of the first issuance of the digital euro.” [Read more at the ECB]

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]

Kiffmeister’s #Fintech Daily Digest (20231103)*

~ kiffmeister

Ripple to power Georgia’s central bank digital currency project

The National Bank of Georgia (NBG) has selected Ripple Labs as its technology partner for developing a potential digital lari (GEL) central bank digital currency (CBDC). The NBG will experiment with Ripple’s CBDC technology and evaluate the practical use cases to gauge potential benefits for the public sector, businesses and retail users. The NBG made the decision following a competition process, which consisted of two phases: submission of a Project Execution Plan (PEP) by nine shortlisted candidates in the first phase, and demonstration of their technology solutions in the second. [Read more at the NBG]

The battle for control over the digital euro wallet

Deutsche Bank staffers Manual Klein and Dr. Alexander Bechtel argue for greater control over the digital euro user interface by banks and payment providers rather than the European Central Bank (ECB). The draft digital euro laws require that the “app developed and provided by the ECB should serve as the dominant front end”. It says the private sector can provide alternatives, but it requires the ECB option always be offered to end users. Also, the ECB plans to provide a clearly defined range of functions for front ends, which will limit the ability of payment service providers and banks to develop their own solutions, and inhibit innovation going forward. [Read more at Ledger Insights]

Who needs an e-Yuan?

Christian Pfister and Nicolas de Sèze provide an historical overview of the People’s Bank of China’s (PBOC) e-Yuan project, putting it in political perspective, then present its main features. They recall the strategic objectives put forward by the PBOC, discuss them and ask whether other objectives may not matter more. They conclude that, although its role in increasing social welfare would be unclear, especially in view of the already high-level in the quality and quantity of payment services in China, the roll-out of a digital yuan could be useful for the Chinese government, especially in pursuing objectives which are not officially put forward. [Read more at SUERF]

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]

Kiffmeister’s #Fintech Daily Digest (20231102)*

~ kiffmeister

SNB launches wholesale CBDC bond settlement pilot project

The Swiss National Bank (SNB) and six commercial banks will launch a wholesale central bank digital currency (CBDC) pilot project on December 1, 2023. Project Helvetia Phase III will test the settlement of tokenized bonds against SNB-issued wholesale CBDC on a delivery-versus-payment (DVP) basis on a distributed ledger technology (DLT) based platform run by the SIX Digital Exchange (SDX). The pilot, which will run until June 2024, will use the SNB’s Swiss Interbank Clearing (SIC) payment infrastructure for the tokenization of central bank money and that of the SIX SIS central securities depository (CSD) for integration with the traditional bond settlement infrastructure. This follows up on the Phase I and II proof-of-concept (POC) work conducted with the BIS Innovation Hub between 2020 and 2022. [Read more at the SNB]

Indian banks offer incentives to lift digital currency transactions

Indian banks are reportedly offering incentives for conducting transactions using the e-rupee retail CBDC nudged by the Reserve Bank of India (RBI) to boost underwhelming transaction volumes. The incentives range from cash-backs to reward points, similar to those offered by the banks on credit and debit cards, they said. The RBI started e-rupee pilot program in December 2022 and is targeting a million transactions daily by end-2023. But retail transactions are still tracking below the target, averaging around 25,000 a day. [Read more at Reuters]

FYI here are some of my upcoming speaking engagements:

Central Bank Digital Currencies: Perspectives on a Digital Canadian Dollar (Online today at 4:00 Eastern Time) [Register here]

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]

Kiffmeister’s #Fintech Daily Digest (20231101)*

~ kiffmeister

Considerations for the use of stablecoin arrangements in cross-border payments

The Committee on Payments and Market Infrastructures (CPMI) published a report on considerations and challenges regarding the use of stablecoin arrangements in cross-border payments. The paper acknowledges it’s possible that stablecoins might cut costs, speed up payments, encourage competition and improve transparency, no stablecoin arrangements yet exist that are deemed to be properly designed and regulated and fully compliant with all relevant regulatory requirements. Further, even if such stablecoin arrangements did exist and could help to address specific cross-border payment frictions, they might not necessarily positively impact cross-border payments as the drawbacks could outweigh any potential benefits. [Read more at the Bank for International Settlements]

Korea Exchange, Bank of Korea to trial DLT, CBDC for carbon trading

The Bank of Korea and Korea Exchange signed an agreement to collaborate in exploring distributed ledger technology (DLT) and central bank digital currency (CBDC) for carbon trading. Simulated trials will take place in the third and fourth quarters of 2024. Both organizations already have related programs. The Korea Exchange is currently conducting simulated DLT experiments and plans to support listed security tokens next year. The central bank said this trial would form part of its CBDC usability tests. However, both the exchange and central bank emphasized this is just a test. It will not impact the functioning of current carbon credit markets. [Read more at Ledger Insights and the Bank of Korea]

U.K. government update on plans for the regulation of fiat-backed stablecoins

The U.K. HM Treasury published an update on its legislative approach for bringing fiat-backed stablecoins into the U.K. regulatory perimeter for financial services. It will inform development of the Financial Conduct Authority and Bank of England’s approaches for regulating stablecoin issuers and custodians, and systemic digital settlement asset payments systems and service providers respectively. [Read more at HM Treasury]

FYI here are some of my upcoming speaking engagements:

Central Bank Digital Currencies: Perspectives on a Digital Canadian Dollar (Online on November 2 at 4:00 Eastern Time) [Register here]

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]