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]
