Chilean central bank publishes CBDC exploration progress report
Banco Central Chile (BCCh) published its second report on the issuance of central bank digital currency (CBDC). It gives an account of lessons learned from different stakeholders, and indicates that it will continue with the exploration process, which will include proofs of concept. However, the continuation of exploration should in no way be understood as a decision to issue CBDC nor is it aimed at eliminating or replacing traditional means of payment, in particular cash, since the BCCh continues to consider that there is not yet sufficient information to make a final decision regarding its issuance. [Read more at the BCCh]
Turkish central bank digital currency project pilot phase confirmed
On February 19, 2024 I reported on the English version of the Türkiye Cumhuriyet Merkez Bankası (CBRT) report on the first phase of its digital Turkish lira testing (originally published in Turkish in December 2023). The report said that “pilot” testing had been done, without providing enough information as to whether the pilots are really pilots. According to the IMF “5P” CBDC product development framework, and the way that CBDCTracker.org and I define pilot, a pilot involves real CBDC and end users, with central bank staff not counting as real end users. However, thanks to Central Bank Payment News, we now have that clarity to label the CBRT phase one testing as pilot testing. Here’s CBRT Deputy Executive Directors Zeynel Abidin Avcı and Bilgehan Kürşad Öz:
“The pilot tests involved real users and specific sale-points, such as cafes, restaurants, and giftshops. In total, the two pilot tests ran for close to a month, and more than 2.000 users, who are not central bank employees, made their payments and transfers. By doing so, they have tested the systems and provided valuable feedback.”
Canton Network completes comprehensive tokenized asset blockchain pilot
The Canton Network, launched in May 2023 completed its exploration of a privacy-enabled open blockchain network for real-time atomic settlement and immediate reconciliation across counterparty systems of tokenized investment asset transactions. Based on more than 350 simulated transactions, the project proved that the blockchain could be leveraged to streamline and synchronize financial applications while at the same time adhering to regulatory asset control, security, and data privacy requirements. It involved 15 asset managers, 13 banks, four custodians, three exchanges, and one financial market infrastructure provider. It exchanged tokenized securities, money market funds and deposits across 22 decentralized applications (dApps). [Read more at the Canton Network]
*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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