On February 20, 2024 I reported on the The European Parliament’s Committee on Civil Liberties and Justice vote on the draft central bank digital currency (CBDC) legislation. I labeled it “reportedly” because I didn’t have the appropriate source information. Thanks to a couple of my intrepid followers, the news can be confirmed. As reported, the draft legislation was passed by 48 in favor of, with six against, and seven abstentions. Meanwhile, it is likely a full European Parliament vote on the digital euro will not happen until after European Union election in June 2024.
HKMA guidance for digital asset custodial services
The Hong Kong Monetary Authority (HKMA) has issued new guidance for authorized institutions that provide digital asset custodial services. Key areas covered include governance and risk management, segregation and safeguarding of client digital assets, delegation and outsourcing, disclosure requirements, record-keeping, reconciliation, and compliance with anti-money laundering and counter-financing of terrorism regulations. [Read more at the HKMA]
Stellar launches smart contracts following bug fix delays
The Stellar Development Foundation (SDF) has deployed smart contracts on the Stellar network. Stellar network validators successfully introduced the “Protocol 20” upgrade, enabling new smart contract capabilities and initiating the phased rollout of its Soroban smart contract platform. The upgrade was initially delayed by the SDF in January 2024 after its team found a bug in Stellar Core. [Read more at the SDF]
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]