Issuing a wholesale central bank digital currency: Why and how
Intereconomics published a paper by Christian Pfister on the whys and hows of issuing distributed ledger technology (DLT) based wholesale central bank digital currency (CBDC). The whys focus on the provision of a safe and liquid settlement instrument that would be directly available in a DLT environment, thus preserving the anchoring role of central bank money in this environment. The hows focus on the potential perimeter of the use of wholesale CBDC (e.g., whether to integrate with a “regulated liabilities network) , the consequences for monetary policy and precautions central banks should take. [Read more at Intereconomics]
Tracing the adoption of digital technologies
The Bank for International Settlements (BIS) published a paper that uses a structural model of consumer demand and supply to understand the main drivers of adoption of smartphones in emerging markets. It finds that the most important factors are improvements in quality and changes in the income distribution of the population. A 10% expansion in the size of the smartphone market can be achieved by reducing the value added tax by 9 percentage points. The same adoption target can also be achieved by providing lower-income individuals with a targeted subsidy for smartphones. [Read more at the BIS]
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]
