Indian CBDC pilot progresses to programmable, offline usage
The Reserve Bank of India (RBI) plans to add programmability and offline payments to its central bank digital currency (CBDC) pilot. “Programmability will facilitate transactions for specific/targeted purposes, while offline functionality will enable these transactions in areas with poor or limited internet connectivity.” It sounds like programmability will take the form of “purpose-bound money” that embeds (“bounds”) programming logic denoting its use based on programmed conditions that becomes “unbounded” once those conditions are met. [Read more at the RBI]
Bakkt warns it might not be able to remain in business
Bakkt, launched amid great fanfare in 2018 by Intercontinental Exchange, the owner of the New York Stock Exchange, warned that it might not be able to stay in business. Bakkt is a digital asset platform and payment app that enables institutions to buy, sell, store and spend crypto-assets. It made strategic partnerships, including with Starbucks and Amazon Web Services, to enable digital asset transactions and services. [Read more at CoinDesk]
HKMA proposes crypto reserve requirements for banks
The Hong Kong Monetary Authority (HKMA) published a consultation paper on proposed new regulations on the prudential treatment of crypto-asset exposures. It is intended to implement standards established by the Basel Committee on Banking Supervision (BCBS) that divide assets that use cryptography and distributed ledger technology (DLT) into four different categories based on risk and other factors that determine how much capital banks must hold in reserve (see below). Group 1a and 1b crypto-assets will basically be treated the same as their non-tokenized versions. Group 2a crypto-assets will face higher capital reserve requirements than group 1 assets, and for group 2b crypto-assets the requirements can be greater than the value of the assets themselves. [Read more at the HKMA]
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]
