FYI I’ve updated my tabulations of retail and wholesale central bank digital currency (CBDC) projects. Click here for the retail CBDC update and here for the distributed ledger technology wholesale CBDC one.
More banks joining the Bank of Russia CBDC pilot
17 banks are gearing up to join the Bank of Russia’s digital ruble pilot program. They have already signed an agreement with the central bank and are now implementing the necessary systems to participate in the upcoming expanded pilot. Currently, 13 banks are already participating in the pilot, along with around 600 citizens and 30 trading and service companies. [Read more at the Bank of Russia]
11 states have pending anti-CBDC legislation
13 U.S. states have now passed, or may soon pass, anti-CBDC legislation. Some are aimed at preventing the state from accepting CBDC as payment, and many many additionally block participation in CBDC trials. Others are excluding CBDC from the definition of money in the Uniform Commercial Code (UCC) so businesses can’t use CBDC to discharge liabilities. [Read more at Ledger Insights]
US legislators aim to unblock bank crypto custody by cancelling SEC rule SAB 121
Lawmakers in both the U.S. House and the Senate have taken formal steps to reverse the Securities and Exchange Commission’s (SEC’s) Staff Accounting Bulletin (SAB) 121, which makes providing crypto-asset custody services prohibitively expensive for banks. SAB 121 rule forces all listed companies, including banks, to disclose crypto-assets under custody as both an asset and a liability on the balance sheet, which is not the standard accounting treatment, because the assets don’t belong to the company. Even the Federal Reserve Chair, Jerome Powell, has acknowledged the SAB 121 treatment is “unconventional”. This rule is especially problematic for U.S. banks because they are subject to capital requirements based on their balance sheet. [Read more at Ledger Insights]
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]
