HKMA plans second tokenized green bond issue
The Hong Kong Monetary Authority (HKMA) is set to issue a second batch of tokenized green bonds. In February 2023, the Hong Kong Government issued its first tokenized green bond, which shortened the settlement process from the typical five business days to one day. The HKMA facilitated clearing and settlement, utilizing a private blockchain network. The second tokenized green bond issuance will explore additional new features, possibly using blockchain technology for the full lifecycle of bond issuance, from creation to redemption. [Read more at the HKMA]
Launch of FPS x PromptPay Link between Hong Kong and Thailand
The HKMA and the Bank of Thailand launched the FPS x PromptPay Link for cross-border QR payment between Hong Kong and Thailand. This provides a fast, secure and easily accessible cross-border retail payment service to people travelling between Hong Kong and Thailand, who will be able to make retail payments by using their mobile payment applications to scan the Hong Kong FPS QR code and Thai PromptPay QR Code displayed by merchants respectively. Merchants will be able to receive their funds immediately. [Read more at the HKMA]
Canadians report a love-hate relationship with cash
According to Payments Canada, while the value of cash used in purchases has declined 41% from 2017-2022, only 13% of Canadians report having gone completely cashless. Of the 87% that still use cash, 31% use cash for day-to-day purchases, and 37% hold on to it for emergencies. While cash is used less often for point-of-sale purchases, the prospect of cashless stores is a concern for 52% of Canadians. And they are divided on the prospects of a central bank digital currency (CBDC), 36% finding it appealing and 30% not. One in four say they would not use a digital Canadian dollar, with 63% who would still use cash if a digital Canadian dollar was introduced. [Read more at Payments Canada]
The recent evolution of consumer payments in Australia
The Reserve Bank of Australia’s (RBA’s) Consumer Payment Survey showed that Australians making in-person payments with cash has dropped from 32% of total payments in 2019 to 16% in 2022. Just over half did not use cash at all in 2022, up from about one-third in 2019. However, around 5% use cash for all in-person payments, privacy and security or budgeting. 29% of Australians hold no cash on their person versus 22% in 2019. The share of people holding cash in other places was unchanged from 2019 at around 40%, consistent with precautionary or store-of-wealth demand. This is seen most in the growth of high denomination banknotes in circulation. [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]