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]