Month: December 2023
Kiffmeister’s #Fintech Daily Digest (20231230)*
Cambodia’s central bank and UnionPay International launch cross-border QR code payment
The National Bank of Cambodia (NBC) and UnionPay launched cross-border QR code payments between the NBC’s Bakong and UnionPay’s global payments platform. UnionPay cardholders will be able to use their UnionPay-enabled wallets to scan Bakong KHQR codes to complete payment transactions at merchants in Cambodia, and by early 2024, Cambodian residents will be able to use their Bakong wallet to make payments at UnionPay QR code accepting merchants in China and globally. [Read more at the NBC]
Bakong’s adoption rate surges as Cambodia strikes more partnership deals
The NBC Bakong online banking and mobile payments app has seen its adoption levels surpass 10 million accounts (about 60% of Cambodia’s population. Bakong allows Cambodians to transfer and receive digital funds using their smartphones without traditional bank accounts. The NBC has also established cross-border payment connectivity with China (see above), Thailand, Laos, and Vietnam, and signed MOUs with the Central Bank of Solomon Islands, the Reserve Bank of Fiji, and the National Bank of Rwanda, to expand the reach of Bakong to these countries. Plus, the NBC has signed a memorandum of cooperation with the Japanese government, to facilitate QR code-based payments between Cambodia and Japan. [Read more at Coingeek]
Some put the central bank digital currency (CBDC) label on Bakong, but the Governor herself has adamantly denied this:
Although the system is built on DLT, it is not a central bank digital currency (CBDC) that some may be quick to assume. Instead, the platform augments the existing Fast and Secure Transfer (FAST), real-time retail payment system and Cambodian Shared Switch (CSS) that facilitate mainly interbank transactions among commercial banks and MFIs.
However, the firm that supplied the underlying technology, Soramitsu, has insisted that Bakong is a CBDC, but I have yet to see a detailed description of the technical architecture that can back that claim up. Also, I haven’t been able to access the NBC financial statements that could confirm or deny the contention. (Here’s a link to the latest annual report, but it’s all in Khmer and not Google Translate friendly because it’s too big (111 MB) and not machine readable.) If it is indeed a CBDC, we should expect to see a line item for it on the liability side of the central bank’s balance sheet.
FYI here are some of my upcoming speaking engagements:
– 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 (20231228)*
Hong Kong proposes licensing for fiat-referenced stablecoins
The Financial Services and the Treasury Bureau and Hong Kong Monetary Authority (HKMA) published a consultation paper outlining their proposal to regulate fiat-referenced stablecoins within the region. Firms actively marketing the issuance of such stablecoins to the public in Hong Kong will be required to obtain a specific local license from the HKMA. Such issuers will have to ensure that the value of the high-quality highly-liquid reserve assets backing the stablecoins is at least equal to the par value of the stablecoins in circulation at all times, to ensure that users will be able to redeem them for fiat currency on demand. [Read more at the HKMA]
Bank of England and HM Treasury form CBDC Academic Advisory Group
The Bank of England (BOE) and HM Treasury (HMT) formed a central bank digital currency (CBDC) Academic Advisory Group (AAG) of experts from a range of disciplines related to the BOE/HMT work on the digital pound. The AAG will serve as a platform for knowledge exchange and research collaboration during the design phase, and will include academics from a range of disciplines including monetary policy, finance, competition economics, industrial organization, behavioral science, law, innovation theory, marketing, and business. [Read more at the BOE]
China unveils digital yuan wallet machine for foreign passport holders
China has launched its first automated digital yuan wallet-opening machine for holders of overseas passports, Hong Kong and Macau ID cards, and other identity verification documents. The machine allows users to exchange foreign currency banknotes for digital yuan on an automatically opened hard wallet. Existing digital yuan wallet holders can also use the machine to make overseas cash-powered top-ups. Visitors to China had been able to buy digital yuan with overseas payment cards via the central bank’s official CBDC mobile app. [Read more at 21Jingji.com]
China mandates CBDC wallets for game coin trading
China’s National Press and Publication Administration (NPPA) introduced new draft regulations for online video games, zeroing in on players’ spending amid a broader crackdown on the sector. Among the proposed rules was a requirement that game coin trading services use real-name digital yuan wallets. Furthermore, services that allow players to exchange game coins for fiat would be banned. [Read more at the NPPA]
FYI here are some of my upcoming speaking engagements:
– 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 (20231226)*
ECCB DCash 2.0 CBDC request for vendor information
The Eastern Caribbean Central Bank (ECCB) issued a Request for Vendor Information (RFVI) seeking input from vendors to shape the discovery process for the commercial deployment of its DCash retail central bank digital currency (CBDC) technology solution. In particular, the ECCB is seeking input from vendors that have “developed a retail CBDC solution or core components of such a solution which is deployment-ready”. Upon evaluation of responses vendors may be invited to further participate in a subsequent request for proposals (RFP) exercise. The ECCB, working with technology partner Bitt, has been piloting the DCash across its eight member island countries since 2021, so this announcement comes as a surprise. [Read more at the ECCB]
FYI here are some of my upcoming speaking engagements:
– 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 (20241224)*
I’ve updated my retail and distributed ledger technology (DLT-based) central bank digital currency (CBDC) tabulations. [See the retail CBDC tabulation here and the DLT-based wholesale CBDC tabulation here]
IMF and World Bank approach to cross-border payments technical assistance
The IMF and World Bank published a paper that outlines their multi-year strategy to provide technical assistance (TA) to help member countries meet the G20 Roadmap for Enhancing Cross-border Payments. A stocktaking exercise shows that their TA supports the Roadmap’s three interconnected priority themes: (i) payment system interoperability and extension, (ii) legal, regulatory, and supervisory frameworks, and (iii) cross-border data exchange and message standards. Going forward, the TA will focus on access to payment systems, extending and aligning operating hours, interlinking of payment systems (especially fast payment systems), promoting the access to and use of digital ID and data exchange across borders, ISO 20022 message standards harmonization, and the application of Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) rules. [Read more at the IMF]
FYI here are some of my upcoming speaking engagements:
– 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 (20231222)*
The role of privacy-enhancing and -preserving technologies in the digital age
The Centre for Information Policy Leadership at Hunton Andrews Kurth LLP (CIPL) released a white paper on privacy-enhancing and privacy-preserving technologies. The paper explores how organizations are approaching privacy-enhancing technologies (“PETs”) and how PETs can advance data protection principles, and provides examples of how specific types of PETs work. It also explores potential challenges to the use of PETs and possible solutions to those challenges. [Read more at the CIPL]
Bank of China in landmark cross-border digital yuan transactions
This month (December 2023) the Bank of China was involved in a couple of landmark cross-border digital yuan transactions. Its Hong Kong branch served as an intermediary for the settlement of a $3.4 million bulk commodity payment between Baosteel Group and Bao-trans Enterprises, and its Shanghai branch completed a $14 million precious metal settlement with the Shanghai Gold Exchange, both transactions in digital yuan. [Read more in The Standard and the Shanghai Securities Journal]
FYI here are some of my upcoming speaking engagements:
– 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 (20231220)*
IOSCO Finalizes its Policy Recommendations for Decentralized Finance
The International Organization of Securities Commissions (IOSCO) published nine decentralized finance (DeFi) policy recommendations covering six key areas: (1) understanding DeFi arrangements and structures, (2) achieving common standards of regulatory outcomes, (3) identification and management of key risks (4) clear, accurate and comprehensive disclosures (5) enforcement of applicable laws, and (6) cross-border cooperation. They are meant to be complementary to the crypto and digital assets markets recommendations issued in November 2023. [Read more at IOSCO]
BlackRock, ARK revise Bitcoin ETF plans along SEC’s cash-only model
Blackrock and ARK amended their spot Bitcoin exchange-traded fund (ETF) filings to comply with the cash redemption model demanded by the U.S. Securities and Exchange Commission (SEC). The amendments relate to the cash creation and redemption model for proposed spot Bitcoin ETFs, with BlackRock and ARK accepting the cash redemption system rather than in-kind redemptions, which imply non-monetary payments like Bitcoin. However, both amended filings would permit them to create and redeem shares via in-kind transactions with regulatory approval. [Read more at Coin Telegraph]
FYI here are some of my upcoming speaking engagements:
– 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 (20231218)*
Norges Bank aims to be set for CBDC verdict in 2025
Norges Bank plans to prepare a recommendation by end-2025 on whether a retail central bank digital currency (CBDC) should be introduced in Norway and in what form. The just-completed fourth phase consisted of experimental testing of technical solutions, analysis of scenarios for the payment system, evaluation of consequences for liquidity management and monetary policy and a review of the legislative changes necessary to permit the introduction of a CBDC. The fifth and final phase will analyse the possibilities afforded by, and the impact of, introducing a retail CBDC and test candidate solutions, and also research new forms of settlement in central bank money that can facilitate innovation in the financial system (e.g., wholesale CBDC). Norges Bank also published a research paper CBDC-related paper on potential effects of a CBDC on liquidity and monetary policy. [Read more at Norges Bank]
Central Bank of Armenia sees no need to hurry in introduction of digital dram
The Central Bank of Armenia reportedly has been holding internal discussions on the introduction of digital dram that are expected to intensify early next year. The central bank’s Chairman said that “we are not in a hurry to introduce digital drams, but certain resources will be invested in opportunities for issuing our own electronic money”. [Read more at Armbanks]
LG CNS to develop CBDC system for Korean tokenized deposits
The Bank of Korea (BOK) announced the award of a contract to LG CNS to develop and test wholesale CBDC systems. One of the tests involves banks issuing tokenized deposits and using a wholesale CBDC for interbank settlement. The other will use wholesale CBDC for securities settlement using distributed ledger technology (DLT) platforms. [Read more at the BOK]
Australia’s new central bank chief backs wholesale CBDC over retail
Reserve Bank of Australia (RBA) Governor, Michele Bullock, expressed support for a wholesale CBDC over a retail version, pointing to the successes of recent case studies. She cited the use cases in cattle auctions but is still not convinced on the retail CBDC side. Instead, the RBA will continue to investigate using CBDCs to settle tokenized asset trades “for a much more efficient and safer settlement process”. [Read more at the RBA]
FYI here are some of my upcoming speaking engagements:
– 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 (20231217)*
Test and deploy: A new era for central bank digital currency
SODA CEO Chris Ostrowski and I have written a short article on the “test and deploy” central bank digital currency (CBDC) project management framework. We note that no central bank launched a general purpose (“death star”) CBDC in 2023 and there are no signs of an imminent launch in early 2024. This is partly because central banks are following the “staged approach” advocated by the IMF and WEF where lengthy and intensive policy-focused analysis is conducted before technology is chosen and real users are engaged. However, a growing number of central banks (e.g., Kazakhstan and Hungary most recently) are following a test and deploy approach aimed at narrow use cases that abbreviates the policy-focused analytic phases, and rapidly iterates through the proof-of-concept, prototype and pilot phases. By focusing on narrow use cases, the financial stability and macroeconomic risks associated with a death star CBDC are absent, which allows for the more agile approach. [Read more at SODA]
Palau advances CBDC with Ripple in phase 2 of PSC program launch
The Ministry of Finance of Palau launched the second phase of its U.S. dollar-pegged Palau Stablecoin (PSC) pilot. The first phase ran from end-June to end-September, 2023. The second phase will prioritize the development of a digital ecosystem and increased user engagement, and integration of financial institutions, legal and regulatory compliance, regulatory bodies, legal frameworks, businesses, and users for transaction security and transparency that adheres to international standards. Palau will leverage Ripple’s CBDC Platform and technical expertise. [Read more on X]
FYI here are some of my upcoming speaking engagements:
– 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 (20231215)*
Results of the National Bank of Kazakhstan’s first digital tenge pilot phase
The National Bank of Kazakhstan (NBK) published an update on its digital tenge project. It includes the high-level architecture of the platform, scenarios where digital tenge is making an impact, and the preliminary results of the pilot launched in November 2023. The white paper also lays out the project’s plans for 2024 and 2025, including expanding the platform’s functionality and enhance the coverage of use cases. All of this is presented in great detail, making the NBK, in my view, an icon of central bank transparency. [Read more at the NBK and Coin Telegraph]
Exploring new technologies for wholesale central bank money settlement
The European Central Bank (ECB) is calling for expressions of interest from financial market stakeholders to take part in trials with central bank money settlement and in experiments with mock settlement in a test environment. The trials and experiments will be conducted with three Eurosystem solutions enabling wholesale financial transactions recorded on distributed ledger technology (DLT) platforms to be settled in central bank money in the T2 real-time gross settlement system (RTGS) operated by the Eurosystem. [Read more at the ECB]
The macroeconomic implications of central bank digital currencies
The Centre for Economic Policy Research (CEPR) and the European Central Bank (ECB) hosted a joint conference that brought together academics and policy makers to discuss theoretical and practical aspects of central bank digital currencies (CBDCs). Relying on a combination of research presentations, keynote speeches and panel discussions, it was aimed at advancing the understanding of the potential benefits and costs of CBDCs from a macroeconomic and policy perspective. Lots of interesting downloadable papers! [Read more at the ECB]
Musk’s X receives Pennsylvania money license in push toward payment features
Social media platform X took a step closer to offering payment features after receiving a money-transmitter license from a 13th U.S. state (Pennsylvania). It grants X the ability to facilitate money transfers and paves the way for the company to allow users to send money to one another, similar to PayPal’s Venmo and China’s WeChat. In order for X to offer payment services to users across the United States, X will need approval in every state, a process that could take up to another 18 months. Elon Musk envisions X remodeling itself into an “everything app”. [Read more on Reuters]
FYI here are some of my upcoming speaking engagements:
– 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]