Bank of Jamaica set on riding out CBDC challenges
Governor of the Bank of Jamaica (BOJ) Richard Byles reportedly says the central bank is “determined” to make its Jam-Dex central bank digital currency (CBDC) work despite the slow take-up. The main reason is merchant adoption, with most of the larger merchants preferring that Jam-Dex payments go through a single point-of-sale machine, so BOJ is testing a solution that uses a dynamic quick response (QR) code. Also, only one bank is able to facilitate Jam-Dex transactions, although three more are expected to step up to the plate soon. [Read more at the Jamaica Observer]
Suptech uptake drives consumer protection and financial inclusion
The University of Cambridge Judge Business School (JBS) Centre for Alternative Finance SupTech Lab published its Annual State of Suptech Report, based on a survey of 64 national financial sector oversight authorities from around the world. It found that the adoption of Suptech continues, with 81% indicating their involvement in various suptech initiatives, an increase from the 71% reported in the 2023 report. However, most implementations remain largely in the early stages of a complete digital infrastructure. [Read more at the JBS]
The real-time payments world map
The Clearing House and PYMNTS.com updated their map of the countries that have adopted, and are expected to soon adopt, fast payment systems. They currently count over 90 countries that have implemented fast payment systems. [Read more at PYMNTS.com]
Chainalysis annual crypto crime report
According to Chainalysis, In 2023, illicit addresses sent $22.2 billion worth of cryptocurrency to services, versus the $31.5 billion sent in 2022. Some of this drop may be attributed to an overall decrease in crypto transaction volume. However, the drop in money laundering activity was steeper, at 29.5%, compared to the 14.9% drop in total transaction volume. However, there was a big increase in the volume of funds sent to cross-chain bridges from addresses associated with stolen funds, and a substantial increase in funds sent from ransomware to gambling platforms, and in funds sent to bridges from ransomware wallets. [Read more at Chainalysis]
*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).
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