Day: January 15, 2024

Kiffmeister’s #Fintech Daily Digest (20240117)*

~ kiffmeister

Test and deploy: A new era for CBDCs

SODA CEO Chris Ostrowski and I wrote an article for CoinDesk on the “test and deploy” approach to retail central bank digital currency (CBDC) project management. The “test and deploy” aims at narrow use cases, allowing for an abbreviated and more agile product development cycle, with rapid iterations through the proof-of-concept, prototype and pilot phases. This allows retail CBDC to be issued to real end users in a safe and controlled manner to offer insight into user demand and experience. [Read more on CoinDesk]

Egypt aims to launch digital currency by 2030

Reportedly, according to a study by the Information and Decision Support Center (IDSC) of the Egyptian Council of Ministers, the Central Bank of Egypt will issue a digital pound (e-pound) by 2030. The aim is to enhance the competitiveness of the national currency and increase the efficiency of monetary policy, and exploit opportunities provided by digital transformation to further develop the Egyptian financial sector. [Read more at the Egypt Independent][The relevant documents are on the IDSC website in Egyptian, but they’re too big for Google Translate, so I can’t verify this story]

The regulated liability network on Corda

R3 published a short primer on how Regulated Liability Network (RLN) tokens would work within the structure of the R3 digital currency sandbox. It first describes the proposed technical architecture of the RLN along with where it sits within the existing sandbox. It then look into the specifics of how issuance and payment operations would work were RLN tokens to be issued in a Corda environment. [Read more at R3]

CBDC: when price and bank stability collide

The European Central Bank (ECB) published a paper that shows the existence of a central bank trilemma. When a central bank is involved in financial intermediation, either directly through a CBDC or indirectly through other policy instruments, it can only achieve at most two of three objectives: a socially efficient allocation, financial stability (i.e., absence of runs), and price stability. In particular, a commitment to price stability can cause a run on the central bank. Implementation of the socially optimal allocation requires a commitment to inflation. [Read more at the ECB]

FYI here are some of my upcoming speaking engagements:

Digital Euro Conference 2024 (Frankfurt on February 29)[Register here and get a 20% discount with the Kiffmeister20 code]

*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 (20240115)*

~ kiffmeister

Scaramucci says Grayscale ETF sales helped fuel bitcoin decline

Bitcoin and other crypto-assets have tanked since the U.S. Securities and Exchange Commission (SEC) approved eleven spot bitcoin exchange-traded funds (ETFs). Some of the decline is being attributed to profit taking and buy-the-rumor-sell-the-news following the recent runup in prices. However, Skybridge Capital Founder Anthony Scaramucci is also attributing it to sales of Grayscale Bitcoin Trust (GBTC) shares to book losses and shift to lower fee alternatives. Most of GBTC’s competitors are charging annual fees of between 0.20 and 0.40% and many are offering temporary fee waivers, but Greyscale is charging 1.50% with no waiver. According to Finequia’s Matteo Greco, in the initial two days of trading after the ETF approvals there was a cumulative inflow of approximately $1.4 billion into the 11 ETFs and $600 million GBTC outflows. [Read more on Bloomberg]

FYI here are some of my upcoming speaking engagements:

– Digital Euro Conference 2024 (Frankfurt on February 29)[Register here and get a 20% discount with the Kiffmeister20 code]

*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]