ECB establishes seven new digital euro rulebook workstreams
The European Central Bank (ECB) is establishing seven new workstreams to develop the various sections of the digital euro rulebook and has issued calls for candidates for each, inviting experts in payments infrastructure and architecture, technical specifications and scheme management to apply. Last year three workstreams were launched, covering the scheme’s compatibility with standards, as well as technical requirements, and identification and authentication. The workstreams will report to the Rulebook Development Group (RDG) that represents consumers, retailers, and intermediaries. Each applicant will need to be nominated by an RDG member. [Read more at the ECB]
Fidelity adds staking to Ether ETF application
Fidelity Investments updated its application to the U.S. Securities and Exchange Commission (SEC) for a spot Ethereum (ETH) exchange-traded fund (ETF) to include the ability to stake. According to the amendment “the Sponsor may, from time to time, stake a portion of the Fund’s assets through one or more trusted staking providers, which may include an affiliate of the Sponsor”. Fidelity made its initial application in November. Other potential issuers include BlackRock, Ark Invest and 21Shares, and Grayscale. [Read more at CoinDesk]
The rise and fall of BNPL: Is the due date near for ‘pay later’ services?
Interest in buy now pay later (BNPL) services seems to be waning. BNPL is an installment plan that allows consumers to pay for purchases later in equal installments. BNPL services profit by levying charges on merchants for transaction processing and occasionally by imposing late fees or interest on customers who fail to pay punctually. It has been described as “similar to a credit card but without the hassles of an application process, card-swiping infrastructure, and separate limits for purchases and cash withdrawals“. However, the BNPL sector now seems to be in decline, with numerous BNPL services either retracting or ceasing operations altogether, as high interest rates challenge the basic business model and regulatory pressure. [Read more at Fintech Singapore]
*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
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