Month: March 2024

Kiffmeister’s #Fintech Daily Digest (20240322)*

~ kiffmeister

EU Parliament outlaws anonymous crypto payments

The majority of the European Union (EU) Parliament’s lead committees have approved new legislative to ban anonymous crypto payments. This comprehensive package of anti-money laundering measures also includes significant restrictions on cash transactions. Anonymous cash payments in commercial transactions are limited to amounts under €3,000, with a complete prohibition on cash transactions exceeding €10,000 in business contexts. Also any crypto transaction via “hosted wallets” (i.e., managed by service providers) must be fully traceable, eliminating anonymity for even the smallest transactions. [Read more at Bitcoinist]

ECB Governing Council floats securities tokenization and unified ledger

The European Central Bank (ECB) Governing Council has called for the exploration, together with financial market stakeholders, the potential use of new technologies for issuance, trading and settlement, fostering tokenization and possibly a “European unified ledger”. “This will help to promote a digital capital markets union and thereby strengthen the efficiency of European financial markets while avoiding a re-fragmentation of elements that have been harmonized and integrated.” [Read more at the ECB]

*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]

Kiffmeister’s #Fintech Daily Digest (20240321)*

~ kiffmeister

SEC Postpones Decision on Hashdex and Ark 21Shares ETH ETFs

The U.S. Securities and Exchange Commission (SEC) is delaying its decision on bids to create Ethereum (ETH) exchange-traded funds (ETFs) from VanEck from March 24 to May 23, Ark 21Shares to May May 24, and Hashdex from March 31 to May 30th. Also, the U.S. SEC reportedly issued several subpoenas to companies related to attempts to label Ether as a security, and the Ethereum Foundation said that it may be under investigation “from a state authority.” Should the SEC move forward with regulating Ether, it could potentially put the regulator in conflict with the U.S. Commodity Futures Trading Commission (CFTC). [Read more at Coin Telegraph]

GSMA state of the industry report on mobile money 2024

The GSMA published its annual report on mobile money. Adoption and active use continued to grow in 2023 but at a slower rate than in previous years. West Africa was the main growth driver, with Nigeria, Ghana and Senegal leading the way. Mobile money transaction volumes grew faster than transaction values – leading to a drop in average transaction values. Much of the higher-value transactions occurred during the height of the COVID-19 pandemic when the demand for digital transactions was very high. [Read more at the GSMA]

Liberian government contemplating CBDC?

Blockchain developer Gluwa is exploring the possibility of building a central bank digital currency (CBDC) for Liberia. The firm’s CEO met with the President of Liberia to discuss enhancements to the country’s financial infrastructure, but no mention was made of central bank engagement, so the latter’s engagement in the project is unclear. [Read more at Gluwa]

*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]

Kiffmeister’s #Fintech Daily Digest (20240320)*

~ kiffmeister

The e-krona PoC phase 4: offline payments with e-krona

Sveriges Riksbank published the fourth and final report on its e-krona proof-of-concept (PoC) work that focuses on offline payments ( the report calls it a “technical pilot” but a “pilot” involves real users transferring real central bank digital currency (CBDC) in limited ways). The solution reserves e-krona for offline use in a “shadow” wallet in the online system. The payment instrument in the form of a payment card records the shadow wallet’s balance and subsequent offline transactions. The actual e-kronas issued by the Riksbank never leave the online system and only change hands when the payment instruments are synchronized. The report concludes that offline payments are viable, but “a secure and functional offline solution requires a lot of development work on technology, regulations and processes”. [Read more at the Riksbank]

China produces CBDC guide for tourists in English

The People’s Bank of China (PBOC) Digital Currency Research Institute published a digital yuan (eCNY) how-to guide for foreigners. That includes using the eCNY app or hardware wallets in the form of payment cards or wearables. The mobile app lets visitors sign up with just their mobile phone number and supports 210 countries so far. To top up, users either link a Visa or Mastercard or visit a bank or kiosk. [Read more at Ledger Insights and download the guide here]

Israel finds transparency as key benefit of government bond tokenization

The Tel Aviv Stock Exchange (TASE) published a detailed report on the proof-of-concept it ran with Israel’s Ministry of Finance to issue a DLT-based government bond as a security token. The trial, conducted in May 2023, involved issuing the bond to a dozen banks as primary dealers. Potential benefits demonstrated included transparency (all market participants have the same visibility and can track the issuance), and accessibility (it’s easier to onboard investors). Although it found that atomic settlement eliminated counterparty risks, it requires more cash, although atomic settlement can be simultaneous without being instant. [Read more at the TASE]

*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]

Kiffmeister’s #Fintech Daily Digest (20240319)*

~ kiffmeister

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

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]

Kiffmeister’s #Fintech Daily Digest (20240317)*

~ kiffmeister

FYI I publish a weekly digest of all of my central bank digital currency (CBDC) related posts, although you don’t need to look at it if you follow this Daily Digest every day. However, you might find it useful if you skipped a few editions. [See the Weekly CBDC Digest here]. Also, if you want some deeper weekly CBDC dives check out Richard Turrin’s Cashless Blog [here] and Conrad Kraft’s CBDC Chronicles [here]. Also, Guneet Kaur’s Bi-Weekly CBDCs Express looks promising [here].

CBDC governance: programmability, privacy and policies

Canada’s Centre for International Governance Innovation (CIGI) Digital Policy Hub published a paper by Ori Freiman on central bank digital currency (CBDC) governance, focusing particularly on programmability and privacy/surveillance. Although programmable money and payments can support social policies, they also raise questions about the authorities’ influence and control, and how to ensure there is no abuse of power. Privacy is a significant CBDC design challenge because meeting financial integrity (e.g., AML/CFT) requirements while offering cash-like anonymity seems incompatible. Authorities’ access to user data could lead to state-level surveillance, threatening civil liberties and human rights. Even if safeguards are put in place, CBDC infrastructure could be changed and initial safeguards overridden, rendering this risk a time-consistency problem. Eleven policy recommendations are suggested on privacy and data rights, accessibility, public participation and oversight, prohibiting programmable money, legislation protecting cash and more. [Read more at CIGI]

*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]

Kiffmeister’s #Fintech Daily Digest (20240315)*

~ kiffmeister

KPIs for the assessment of the ECB’s “wCBDC” work

The European Central Bank (ECB) published the learning strategy and key performance indicators (KPIs) proposed for its exploratory work on new technologies for central bank money settlement of wholesale financial transactions. The work is focused on three interoperability-type solutions, (i) trigger (ii) TARGET Instant Payment System (TIPS) hash link, and (iii) full distributed ledger technology (DLT) interoperability. The first two solutions involve the market platform interoperating with the existing TIPs platform. Only the last one (full-DLT) involves what the rest of the world calls wholesale central bank digital currency (wCBDC), in which the payment instrument is DLT-based central bank money (CeBM). [Read more at the ECB]

How do privacy concerns impact actual adoption of CBDC?

Quantitative Finance and Economics (QFE) published a paper that, based on a quantitative questionnaire among 682 Chinese citizens, explored the impact of privacy concerns on e-CNY central bank digital currency (CBDC) adoption. It found that several antecedents significantly influenced privacy concerns that negatively influenced e-CNY usage, particularly perceived vulnerability and self-efficacy concerns. Perceived vulnerability may arise from concerns related to the security of the technology, the potential misuse of personal information, and the risk of financial losses. Self-efficacy relates to potential e-CNY user confidence that they can securely and manage associated privacy risks. [Read more at the QFE]

CBDCs will need to work across borders. Here are the models exploring how to do it

The Atlantic Council published an article that compares three main models of CBDC interoperability across borders. The IMF “XC” three-layer platform is based on a DLT-based global centralized ledger to simplify and streamline cross-border payments. The BIS Universal Ledger model advocates for a shared application programming interface (API) based (rather than DLT-based) global ledger that supports the issuance and transaction of both CBDCs and tokenized assets. SWIFT’s New Cross-Border Project model facilitates the connection of disparate domestic CBDC networks, enabling them to communicate and transact with one another while leveraging SWIFT’s existing infrastructure and security protocols. [Read more at the Atlantic Council]

*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]

Kiffmeister’s #Fintech Daily Digest (20240313)*

~ kiffmeister

ECB Executive pens November 2025 rollout for digital Euro CBDC

European Central Bank (ECB) Executive Board member Piero Cipollone gave a speech that outlined the fundamental design choices and rationale behind the digital euro project. The project is currently in the “preparation” phase in which the scheme rulebook is being finalized, service provider are being selected, deep dives are being conducted (including conducting further research on offline functions) and test and roll-out plans are being drafted. The preparation phase is expected to be complete by November 2025, at which point potential “roll-out” may happen if the legislative framework is adopted by the European Parliament. However, it’s unclear what is meant by “rollout” since CBDC launches are typically preceded by pilots, a step the ECB would be unlikely to skip. [Read more at the ECB]

HKMA launches phase 2 of the e-HKD pilot programme

The Hong Kong Monetary Authority (HKMA) launched phase 2 of the e-HKD pilot programme. Phase 1 was completed in October 2023 and had studied domestic retail use cases in various areas such as programmable payments, settlement of tokenized assets, and offline payments. Phase 2 will delve deeper into select pilots from phase 1 where an e-HKD could add unique value, such as programmability, tokenization and atomic settlement, as well as explore new use cases that have not been covered in the previous phase. Organizations interested in participating in phase 2 have been invited to submit applications by May 17, 2024. [Read more at the HKMA]

Technology providers in the payment sector: market and regulatory developments

Banca D’Italia published a paper on financial technology providers and their crucial role in enabling firms – even small ones – to become more efficient and keep pace with innovation. It draws attention to how interdependencies between such providers and financial entities may pose new systemic risks, deserving the attention of financial regulators and overseers. Although it doesn’t cover central bank digital currency (CBDC) explicitly, all of the points it makes seem relevant to the role such technology providers play in CBDC launches and pilots. [Read more at the Banca D’Italia]

*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]

Kiffmeister’s #Fintech Daily Digest (20240312)*

~ kiffmeister

Banco do Brasil selects G+D to test offline payments for CBDC [Misleading news!]

“Banco do Brasil is to work with German firm Giesecke+Devrient (G+D) to test offline payments as part of pilot trials of the Drex central banking digital currency (CBDC)“. At this point you may be thinking that we’re talking about the central bank, Banco Central do Brasil (BCB). However, Banco do Brasil is a commercial bank that purports to be part of the BCB’s Drex pilot. It may be true that this offline payment test is done with the BCB’s blessing, but the press release could make that clearer. [Read more at Banco do Brasil]

HKMA launches stablecoin issuer sandbox arrangement

The Hong Kong Monetary Authority (HKMA) launched its stablecoin issuer sandbox. Tying in with the consultation on the legislative proposal for implementing the regulatory regime for stablecoin issuers, the HKMA wishes to leverage the sandbox arrangement to communicate supervisory expectations to parties interested in issuing fiat-referenced stablecoins in Hong Kong, as well as to obtain feedback from participants on the proposed regulatory requirements. The list of participants of the sandbox arrangement will be available on the HKMA website. [Read more at the HKMA]

EBA launches consultation on stablecoin redemption guidelines

The European Banking Authority (EBA) has initiated a consultation on the guidelines for the orderly redemption of asset-referenced or e-money tokens in the event that the issuer fails to fulfil its obligations under the Markets in Crypto assets Regulation (MiCAR). For example, the draft guideline calls for the clarification of the main principles governing the redemption and distribution plan, such as the equitable treatment of token holders, and describe the main steps for the orderly and timely implementation of the plan. [Read more at the EBA]

Tokenization of financial assets

Xavier Lavayssière posted a paper that provides an interdisciplinary analysis of asset tokenization to clarify the concept and its effect. The paper identifies three key elements; (i) the link between a token and its underlying asset, (ii) the characteristics of the token and its infrastructures where their essential properties, sharedness and trust-minimization, rather than specific technologies, are established, and (iii) the representation of ownership, with new models of custodianship and identification. The paper also discusses the new roles for the various market participants, from register operators, legal advisors, auditors, and underlying platform operators. Also it covers the challenges that tokenization presents, including issues around privacy, technical security, and redefining concepts of ownership, transfer, finality, and interoperability. [Read more at SSRN]

*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]

Kiffmeister’s #Fintech Daily Digest (20240311)*

~ kiffmeister

FCA Approves Creation of UK Listed Market for Crypto ETNs

The U.K. Financial Conduct Authority (FCA) will not object to requests from Recognized Investment Exchanges (RIEs) to create a UK listed market segment for crypto-asset-backed Exchange Traded Notes (cETNs). These products will be available for professional investors, such as investment firms and credit institutions authorized or regulated to operate in financial markets only. However, the ban on the sale of cETNs (and crypto derivatives) to retail consumers remains in place. On the same day as the FCA announcement (March 11, 2024) the London Stock Exchange confirmed it will accept applications for the admission of Bitcoin and Ethereum cETNs in Q2 2024. [Read more at the FCA]

Logical architecture for a digital shekel system

The Bank of Israel (BoI) published a paper that examines architecture alternatives for implementing the two-tiered central bank digital currency (CBDC) business model. The paper focuses on the types of participants in the system, the functional distribution between the participants in providing an end-to-end solution, the distribution model to end users; and back-end layer—or system “engine”—managed by the central bank. It concludes that the optimal model is an indirect distribution model, in which the central bank distributes CBDC to the institutions that manage end user’s accounts, and those will support distribution to the end users. [Read more at the BoI]

BRICS working on blockchain-based digital payment system

The five-nation BRICS group Brazil, Russia, India, China and South Africa) is reportedly working on a blockchain-based digital payment system. Development work will also continue on the Contingent Reserve Arrangement, aimed at reducing reliance on U.S. dollars. [Read more at TASS]

*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]

Kiffmeister’s #Fintech Daily Digest (20240308)*

~ kiffmeister

Project Aurum 2.0: Improving privacy for retail CBDC payment

The BIS Innovation Hub and the Hong Kong Monetary Authority have launched the second phase of Project Aurum. Phase 1.0 tested the feasibility of a technological stack that integrates a wholesale interbank system and a retail e-wallet. Phase 2.0 will now focus on how to enhance privacy for retail central bank digital currencies (CBDC). It will explore several privacy-enhancing technologies, including pseudonymization and zero knowledge proofs, and test how increasing privacy affects the performance and compliance of a system. [Read more at the BIS]

Powell says Fed not “remotely close” to a central bank digital currency

Chairman Jerome Powell, testifying before the Senate Banking Committee on March 7, 2024, said the U.S. Federal Reserve was “nowhere near” issuing a CBDC. He added that it has no interest in establishing accounts for individuals that would compete with the banking system, and it would not support any Fed monitoring of personal financial transactions. [Read more at Reuters]

CFTC digital asset classification approach and taxonomy

The U.S. Commodity Futures Trading Commission (CFTC) Global Markets Advisory Committee (GMAC) Digital Assets Subcommittee has proposed a new digital asset classification approach and taxonomy. It defines a digital asset in a technology agnostic manner, with the Subcommittee noting that the type of database or network should not be part of the classification to avoid “unintended consequences for the application of market regulations.” [Read more at the CFTC]

Digital Asset: a controllable electronic record, where one or more parties can exclusively exercise control through transfer of this record and where the controllable electronic record itself is uniquely identifiable. Excluded from the definition are those controllable electronic records that exist in and function solely as part of a financial institution’s books and records.

*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]