Sri Lanka to introduce CBDC by the end of this year
The Bank of Sri Lanka reportedly may introduce a central bank digital currency (CBDC) by the end of this year (2024). On January 10, 2023, two central bank executives told the Parliamentary Committee on Ways and Means is already planning proof of concept work to see if a CBDC meets the central bank’s requirements. [Read more at Ledger Insights]
Bank of Russia plans to launch direct support for CBDC
The Bank of Russia reportedly plans to launch a direct support line for digital ruble end users. They published a request for proposals stating that it wants “to assess the cost of performing work to create a multi-channel digital complex for recording telephone conversations, organizing the reception of calls, recording them, using and storing records as part of the launch of the first line of customer support for the Bank Russia. [Read more at Ledger Insights]
Bank of Japan, Finance ministry hold first digital yen CBDC meeting
The Bank of Japan and the Ministry of Finance reportedly held their first(!?) meeting to discuss a potential digital yen on January 26, 2024. The meeting also involved representatives from the Cabinet Office and National Police Agency. Observers from the Fair Trade Commission and the Personal Information Protection Commission. The Ministry outlined the need to ensure a CBDC can coexist with existing private sector digital payment firms, enhance payment convenience and protect users’ personal information. [Read more at Ledger Insights]
Valuation of crypto-assets: A guide for investment professionals
The Chartered Financial Analyst (CFA) Institute published a paper that investigates the valuation models that apply to different elements of the crypt-asset universe, including smart contract platforms, decentralized applications, and Bitcoin. For example, For bitcoin, it shows the strengths and limitations of four models: the total addressable market approach, the stock-to-flow model, Metcalfe’s law, and the cost of production model. Each model is derived from an underlying characteristic of bitcoin and takes differing viewpoints by assessing the store-of-value or medium-of-exchange approach. [Read more at the CFA Institute]
Understanding the post-pandemic demand for Australia’s banknotes
The Reserve Bank of Australia (RBA) published an article that examines the value of banknotes used for each component of cash demand and how it has changed since the COVID-19 pandemic. The estimated share of banknotes used for transactions in Australia has declined by around 5 percentage points since early 2020. We estimate that of all the banknotes currently in circulation, 9–26% are used for transactional purposes, 5–9% are lost, 7–11% are used in the shadow economy, and 55–80% are hoarded domestically or internationally. [Read more at the RBA]
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]